New research from ING Direct has shown that the average Briton has seen their savings fall by around £100 since the last quarter.
This is a drop of 2.8 per cent and leaves the average savings balance in the UK at around £1,783. The savings drop is being brought about by the rising cost of living, unemployment and tax rises. The latest fall in savings balances leaves Britons’ rainy day funds at the lowest they have been since ING Direct began tracking the data two years ago.
The research found that 41 per cent of people are now dipping into their savings to pay for everyday items like food and petrol. The analysis also suggested that a growing number of people are trying to pay off debt such as overdrafts and credit cards amidst fears about job security.
However, nearly a third of those surveyed said that they plan to rebuild their savings later this year if the economy improves.
Commenting on the findings, ING Direct Senior Economist James Knightley said, “You would expect to see a downward push on savings levels post-Christmas, but a like-for-like fall on the same fiscal quarter suggests that there is more at play than simple seasonal variation.”
