Average UK consumer savings fall £100 to £1,783

Posted on May 13th, 2011 | Categories - Savings

People are saving less as they try to meet the cost of living and pay off their debts.

Home owners should review their outgoings and prepare for another tough year.

Average savings in the UK have fallen by £100 due to the high cost of living and rising fears of unemployment, shows ING Direct research.

According to the study, current average savings stand at £1,783, which is £100 lower than the figures recorded during the same period last year. A significant 12% drop in savings has been recorded over the past two years highlighting the struggles faced by many British households.

Just over two fifths of the participants in the study said that they rely on their savings to meet the cost of paying for essentials like groceries and petrol. Others said they are trying to pay off their debts instead of making a saving due to fears that they may lose their job in the future.

Clare Francis, of moneysupermarket.com, said: “The increase in the cost of living is something UK adults have had to bear the brunt of over the last 12 months. The rising price of petrol and everyday basics such as food and energy have hit consumers hard, and at times it can feel like it is impossible to make any more savings when essentials are rising so steeply”.

She continued: “2011 is set to be another tough year for many households, with finances continuing to be pushed to the max. People should be reviewing all of their outgoings as a priority to see where they can get better value and free up vital cash”.