The amount of money Britain’s are putting aside for a rainy day has fallen to a record low.
According to new figures released by the Office for National Statistics, just 1.7 per cent of income was left unspent in the first quarter of 2017, lower than at any point since 1963.
Despite this record low in savings, the statistics show that people spent less in shops and on going out, with household spending growth dropping from 0.7 per cent in the final quarter of 2016 to 0.2 per cent in the following quarter.
Trades Union Councils General Secretary Frances O’Grady says: “These figures make for grim reading. People raiding their piggy banks is bad news for working people and the economy.
“But with wages falling as living costs rise, many families are having to run down their savings or rely on credit cards and loans to get through the month.”
Earlier this week, a Moneyfacts report said that savers have faced a “never-ending battle” to get a decent return on their cash over the past few years.
“Government lending initiatives and consecutive cuts to bank base rate have resulted in savings rates plummeting,” says Rachel Springall of Moneyfacts.
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