NS&I's John Prout
Britons are saving £87 each month, down from £100 last spring, and almost a quarter (23 per cent) are saving nothing each month, a rise from 17 per cent last spring.
A quarter (25 per cent) say they are less likely to save over the next three months.
NS&I's latest Quarterly Savings Survey, published today (4 July 2012), shows savings levels have dropped over the last year, with a growing number of the population saving nothing each month. Over a third (37 per cent) of savers don't have enough savings to cope in an emergency.
This spring Britons saved an average of £87 each month. This has fallen from £95 in winter and £100 this time last year. As a percentage of income the drop in monthly savings was from 8.31 per cent in spring 2011 to just 7.08 per cent this quarter, despite income levels remaining broadly stable.
The findings also show that there are a growing number of people who don't save anything each month. Nearly a quarter (23 per cent) of Britons admitted they saved nothing during the spring months, up from 17 per cent this time last year, an increase of 2.96 million people.
John Prout, retail customer director, NS&I, said: "When times are tough it can be difficult to save but even putting away a few pounds each week will help act as a financial cushion, should you face an emergency. It is worth everyone taking another look at their finances to make sure their money goes as far as possible. Why not start a log of all incomings and outgoings to help you work out a budget? This can be a useful way to keep on top of your money management."
Last spring (2011) nearly a third (32 per cent) of Britons with savings goals were motivated to save for an emergency, but this fell to just 24 per cent in winter. Perhaps as a result of this, over a third (37 per cent) of savers now don't have enough savings to cope in an emergency.
The outlook for Britain's savings levels is not optimistic. A quarter (25 per cent) said they're less likely to save over the next three months and nearly half (49 per cent) of Britons said the amount they're able to set aside won't change over the same period.
NS&I's research has identified that people in their late thirties and early forties (35-44 years) particularly struggled to save this quarter. The amount that this age group saved fell significantly, with people saving 5.82 per cent of their income this spring compared to 7.58 per cent in winter. Over a quarter (28 per cent) didn't make any savings at all.
