According to new research from Scottish Friendly, nine million Brits are dipping into savings each month to make ends meet.
Announced in a press release, the data reveals that lower disposable incomes in the UK are leaving nearly one in three people regularly dipping into savings to pay for monthly expenditure.
The quarterly index which looks at spending and saving habits in the UK, also showed that disposable income is at 8% of take-home salary, which is 5% less than when measured just 6 months ago.
Product Director at Scottish Friendly Neil Lovatt, commented that the results indicate that while people in the UK want to save, the capacity to do so is in decline.
As levels of disposable income have remained stable, the data suggests that consumers are being ‘squeezed’ elsewhere.
“The worry is that things are set to get worse”
“Housing remains the biggest expense for most, so, when rent or mortgage payments go up, disposable incomes naturally reduce. For example, demand for rental properties across the UK increased by around seven per cent since June, while supply fell. This has helped squeeze personal budgets leaving many to dig into their savings to make ends meet.”
“The worry is that things are set to get worse, as winter approaches people have to find additional funds to cover rising fuel costs and extra spending money for the festive season. One in four people [26 per cent] already feel that their financial situation will worsen over the next three months and with household budgets already at full stretch, it could be a very difficult season for many.”
The following shows regional variations of the data from Scottish Friendly:
|Region of the UK||Percent of salary attributed to disposable income||Average monthly take home salary (after tax)||Average disposable income|
|South West||9.2 per cent||£2,137||£197|
|Wales||9.2 per cent||£2,109||£196|
|North West||9.1 per cent||£2,251||£205|
|West Midlands||8.8 per cent||£2,304||£203|
|Yorkshire & Humberside||8.7 per cent||£2,345||£206|
|North East||8.7 per cent||£2,252||£197|
|East Midlands||8.3 per cent||£2,580||£215|
|Scotland||8.0 per cent||£2,614||£211|
|South East||7.7 per cent||£2,560||£199|
|London||6.9 per cent||£3,409||£236|
|Northern Ireland||6.5 per cent||£2,275||£149|
Source: Scottish Friendly, Sept 2014
The data shows that Northern Ireland and London are among the two areas of the UK with the lowest disposable income, along with the North East, Wales, and the South West.
According to the data 9.12 million people regularly take on average £100 from savings each month to help pay for everyday expenses.
The research shows that across the UK on average people are left with just eight percent of their salary, as disposable income.
People in the UK have just £205 on average left each month after bills and other essentials have been paid for, with 38% of those questioned saying they had less than £100 disposable income each month.
This is a sponsored post which has been written in association with Scottish Friendly.