The amount of money the population is saving has decreased this winter to its lowest level for more than two years, according to NS&I's Savings Survey.
On average, the British public is now setting aside 6.25% of monthly take-home income. This figure has fallen consistently since this time last year (6.48%), and is at its lowest level since summer 2007 (6.22%).
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 £1,310, from £1,384 last quarter, and is at its lowest level since Spring 2008 (£1,306).
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% (6.01% in winter 2008/09), with the West Midlands at 6.50% (5.89% 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.
"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," said Tim Mack, Senior Savings Spokesman at NS&I.
“Fewer people say they are regularly saving money this quarter. Over the past five years, this figure has fluctuated between 47% and 55%, but this winter it has fallen to 44%, 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.
| Amount saved by regular savers |
% who regularly save |
Average saved per head |
Average monthly income |
Amount saved as a % of average income |
|
| Winter 08/09 |
201.55 |
47 |
90.12 |
1390.10 |
6.48 |
| Autumn 2009 |
203.17 |
47 |
88.65 |
1384.20 |
6.40 |
| Winter 09/10 |
195.08 |
44 |
81.94 |
1310.10 |
6.25 |
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