No fewer than 33 per cent of British holidaymakers have said they plan to cut their expenses by staying away from foreign holiday trips, according to a new study.

The study by Norwich Union revealed that many are shelving spending holiday abroad due to increasing costs and more than 1,000 of the respondents said they hope to avoid taking out travel insurance.

In the same vein at least two-thirds of people interviewed revealed that they plan to avoid paying for their holiday by running up debt on credit cards.

In another development, the Financial Services Ombudsman has criticised the working practices of insurance companies, banks, brokers and money lenders.

As he published documented grievances yesterday, Ombudsman Joe Meade said that about 2,700 complaints were received by his office between January and June this year, representing a 30 per cent rise.

He said that economic slowdown contributed to the rise in complaints, even as he highlighted specific cases where insurance firms pressured vulnerable and elderly customers into purchasing policies.

“I find it sad and despairing in this day and age that the vulnerable and elderly would be treated as outlined in four of the case published today,” he said.