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Nearly half of adults won't be able to save

ended 22. July 2022

A report published this morning by the ONS showed the following: 

  • Around 9 in 10 (89%) adults continued to report their cost of living had risen over the past month; this is an increase since we first started asking this question in the period 3 to 14 November 2021 (62%).
  • Around half (46%) of adults who pay energy bills found it very or somewhat difficult to afford them, which is an increase from 43% in the previous period (22 June to 3 July 2022).
  • Just over one in five (21%) adults reported they had to borrow more money or take out more credit in the past month compared with a year ago, while 46% of adults stated they will not be able to save any money in the next 12 months.
  • Half (50%) of adults reported that they were buying less when food shopping, while 50% of adults reported having to spend more than usual to get what they normally buy; these proportions have increased from when the data were first collected (8% and 18% in September and October 2021, respectively).

Any thoughts on any of these points, jot them down ASAP.

3 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
This data is frankly demoralising but doesn’t come as much of a surprise. No matter where you go, you cannot escape the cost of living increases. I’m fed up of people arguing tax cuts are inflationary. They are needed. When over 50% of people are buying less food and 20% of people are borrowing more, more money needs to be put into people's pockets. With energy prices set to increase further in October, the Government needs to act urgently. Sadly, all the focus is on the next PM rather than the economic crisis unfolding before our eyes.
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Legend
Maddy Alexander-Grout
CEO at My VIP Rewards
It’s going to be really tough for everyone this year, there are ways to be savvy when you are spending money, and I talk about a lot of these on my tiktok page Mad about money. Some of my top tips would be to bargain hunt, shop for yellow stickers, shop in charity shops. A lot of people will struggle simply because they don’t have an idea of what is coming in and what is going out. Creating a budget knowing what goes out on what day, and how much will help you to know where you need to make savings. If you receive employee benefits from your employer make sure you are taking advantage of any discounts and Cashback offers. They really do help. Employers have a duty to be supporting their employees with rising cost of living. Sadly a lot can’t afford to give payrises so employee benefits are the next best way to help people to save.
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Graham Wells
Founder and Financial Coach at GroWiser Financial Coaching
It's absolutely no surprise that 9 out of 10 people are reporting a rise in their cost of living. That just reflects the reality of prices rising at the fastest rate for 40 years. At times like this, it's perfectly natural for us to become more selective with food shopping and other expenses, although it will create strain for many who are already struggling. It's concerning that 46% of adults stated they will not be able to save any money in the next 12 months. Pre-covid, the savings ratio in the UK was about 5% (the amount of household income being saved). During lockdown, this shot up to almost 25%, then slumped back down to around 7% again post-Covid. It shows that when the opportunity to spend money is taken away, we're able to save very well. Individually, we need to work on our spending and saving behaviours so that we become better able to deal with financial crises. Collectively, we need to do more to support those who genuinely cannot cope with the cost of bare essentials like food, shelter and safety.