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Millions have savings of £100 or less

  • 30/09/2016
  • Author:bridgetmccall

Money Advice Service study finds. This presents a particular challenge for people on low incomes although many have more savings than those on higher incomes.

Notes and pound coins

Two in five people of the working population have less than £100 in savings, putting them and their finances at risk if an unexpected bill lands. This is according to new Money Advice Service research showing how just one emergency could easily push 16.8 million into debt.

Five areas of the UK are particularly affected. More than half the adults in Wales (50.1%), the North East (50.7%), Yorkshire and Humber (50.9%), West Midlands (55.2%) and Northern Ireland (56.8%) had less than £100 saved. In the South East (30.1%), the figure for the number of people that had this level of savings was lower - less than one in three.

The non-saving habit

A quarter of the total working population are classed as “non-savers” in the report., 'Closing the Saving Gap'.

Many wanted to save but felt they aren’t able to because of barriers like a lack of spare money, motivation, or even just the skills needed to manage money.

Yet 45% of those with no savings have a household income above £30,000 – so they aren’t classed as “low-income” and should be more able to overcome obstacles and start building up a savings buffer.

On the other hand, there are those who struggle to get by but still manage to save for emergencies. One in four (23%) adults in households earning less than £13,500 have more than £1,000 in savings, and two in five save every or most months.

Turn2us help

Many Turn2us users seek help because of an unexpected bill or emergency.

If you are on a low income and struggling financially, you can use our free Benefits Calculator to check your welfare benefit entitlements and tax credits. Even if you have checked before, it is worth doing so again, especially if there has been a change in your circumstances.

You can also use our Grants Search to find out if you are eligible for a charitable grant, or other support. If you are worried about any issues and would like further advice, you can use our Find an Adviser tool to locate face-to-face advice in your local area.

We also have information pages in the Your Situation section of our website that you may find helpful.

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