The rising cost of living is forcing more and people to fall back on their savings, research has found.

According to Abbey Savings, 31 per cent of those who had made withdrawals used the money for normal daily costs, while 15 per cent needed it to pay bills.

The study, conducted on the bank's behalf by market research company ICM, found that the average individual savings account (ISA) holder had withdrawn £579 - a national total of £6 billion.

Director of savings and investments at Abbey Reza Attar-Zadeh said: "You never know when you're going to need to fall back on your savings and in this respect dipping into them to meet bills such as gas bills is no bad things."

However, she warned that withdrawing from an ISA could reduce the earning potential of such an account.

Last week the Building Societies Association observed that worries over the flexibility of money were increasingly prompting consumers to turn to ISAs, as they represent as "effectively tax free" option.

© Adfero Ltd