Coronvirus: Britons save big as spending falls amid lockdown

Yahoo Finance UK
The average Brit may have saved up to £700 extra per month. Photo: Getty
The average Brit may have saved up to £700 extra per month. Photo: Getty

The average Briton may have saved up to £700 ($878.12) per month during the coronavirus-related lockdown, which has meant little to no commuting, socialising or dining out, and a change in spending habits, cash saving company Raisin UK said.

It surveyed 2,000 Britons after noting an 810% increase in new customers during lockdown, and found that nearly a quarter of respondents said they grew their savings during the lockdown and felt it was rewarding to do so.

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Over a third of the people said they spent less on takeaways, over a fifth of people said they spent less on alcohol and a tenth said they spent less on cigarettes.

Despite those on furlough only being paid 80% of their normal salary, 44% reported an increase in their savings.

A sixth of respondents said that before the lockdown they didn’t have any plans to save, while 18% said the pandemic had highlighted that they had no buffer to fall back on in case of an emergency.

READ MORE: UK economy slowly recovering, says Bank of England chief

Almost half of those polled said they wish they had saved more money, just under a third said they wouldn’t spend as much on things they don’t need in future and almost a third saying they will be more conscious of saving money.

Almost a fifth said they were now saving their money for a rainy day when they hadn’t previously.

Raisin UK co-founder Kevin Mountford said: “Lockdown has shifted our outlook on money because, for many of us, our financial circumstances have been forced to change. This has created the perfect opportunity to make long-term changes to our attitudes when it comes to saving and spending.”

Meanwhile, research from the Office for National Statistics (ONS) recently suggested that more than one fifth of usual household spending in the UK has been prevented during the lockdown – money which could instead potentially be saved or used to plug losses in income.

But younger households, renters and people living in London may find themselves particularly unlikely to have had spare cash left over, the analysis said.

READ MORE: Coronavirus: Government issues urgent call for job creation schemes

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