Brits have saved £1.8bn as ‘lockdown’ sees dramatic fall in spending

A new report from cash savings service has found that people have been saving during the lockdown.

The survey of 2,000 UK savers discovered how habits had changed during lockdown and how much the UK has been saving on average.

The data showed that the average Brit has been saving up to £700 per month which amounts to £1,750 since the government guidelines came in place.

This equals to over £1.8bn in savings based on recent research which revealed 10.8M brits save regularly every year. The savings have come from the lack of commuting, socialising and dining out due to COVID-19.

Despite those on furlough only being paid 80% of their normal salary, 44% reported an increase in their savings, while over a quarter (28%) say the Covid-19 pandemic has highlighted that they had no buffer to fall back on in case of an emergency.

The Covid-19 pandemic has influenced people’s approach to saving with over three-quarters of UK adults (77%) opinion on savings changing. 1 in 5 (20%) say it’s highlighted that they spend money on unnecessary things, 18% says it’s highlighted that they had no buffer to fall back on in case of an emergency and 1 in 6 (16%) say it’s shown them that they can save if they put their mind to it.

Recent struggles have given us an increased appreciation of financial security and the value of making every pound go further. Many of us are already determined to spend less on eating out (31%) and rounds at the pub (22%). However, there are some things we just cannot live without including gym memberships (14%), subscriptions (13%) and takeaway teas and coffees (13%).

Raisin UK Co-Founder, Kevin Mountford, comments: “For 22% of us the lockdown has shown how rewarding it is to have money put away – with that figure increasing to 28% among furloughed workers.

“It’s encouraging to see that, as a nation, we’re taking the time to develop better habits when it comes to our spending saving. In fact, since the start of lockdown we’ve seen an 810% increase in new customers with record deposits in one and 18-month fixed-rate bonds.”