1 in 3 Brits dip into savings

Photo: Images_of_Money

Almost in one in three Brits dipped into savings at the end of 2015, as seasonal costs stacked up.

31 per cent raided their rainy day funds, according to Lloyds Bank, although the saving habits of individuals varied significantly across the country. People in the South West were the least likely to have saved throughout the year, with 21 per cent on average not saving anything not saving at all in the past month for the final quarter of 2015.

A fifth of people in Yorkshire and The Humber (20 per cent) and Wales (19 per cent) also saved nothing in Q4, compared to a much smaller proportion of 15 per cent in Greater London, South East and East Midlands. Greater London, South East and East Midlands also showed an increase from Q3 to Q4 of at least 4pp in the proportion of people who were able to save.

Over a quarter (26 per cent) of savers say they have set savings targets and are on track to meet them, with half attributing their success to good budgeting and others saying that setting realistic savings goals was the key to successfully saving.

However, the majority of those who were unable to meet their savings targets said this was due to increased living costs. Indeed, rents are on the up, particularly in London, as supply shortfalls continue to push up values. House prices are also climbing for the same reason.