Savings levels drop this winter

3 March 2010

This winter, the amount of money the population is saving has decreased to its lowest level for over two years, according to NS&I's Savings Survey. On average, the British public is now setting aside 6.25 per cent of their monthly take-home income. This figure has fallen consistently since this time last year (6.48 per cent), and is at its lowest level since summer 2007 (6.22 per cent).

In pounds, average savings have fallen from £90.12 twelve months ago, winter 2008/09, to £81.94. In addition the average income has fallen to £1310, from £1384 last quarter and at its lowest level since Spring 2008 (£1306).

Examining savings attitudes across the country, savers in East Anglia and the West Midlands recorded positive savings behaviour, managing to set aside more money as a percentage of their income than other areas. East Anglian savers were highest at 7.77 per cent (6.01 per cent in winter 2008/09) with the West Midlands at 6.50 per cent (5.89 per cent in winter 2008/09). In Greater London the average amount saved per person fell below £100 for the first time in almost two years. On average people in London are now saving £99.45 per month.

Tim Mack, Senior Savings Spokesman, NS&I said: "With the new financial year approaching, now is a good time for people to take a closer look at their finances and set themselves savings goals for the year ahead."

Fewer people say they are regularly saving money this quarter. Over the past five years, this figure has fluctuated between 47 per cent and 55 per cent, but this winter it has fallen to 44 per cent, one of the lowest ever recorded levels.

The amount of money regular savers set aside each month has fallen below £200 for the first time in over a year to £195.08.

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