31% of Britons save nothing in past 3 months

Almost one-third of UK consumers have failed to save any money in the past three months.

Research by Halifax has highlighted how many people are not taking a responsible attitude to their finances, choosing to spend all of their disposable income instead of keeping some for a rainy day.

Part of this was attributed to festive spending, with many parting with upwards of £500 on gifts and socialising in the run-up to Christmas. In many cases, this was money that Britons could not afford to spend. 

Some 73 per cent of respondents to the survey also said they made no effort to retain their savings at a certain level, which merely encourages them to dip into them whenever they see fit. 

In terms of why savers used their cash, emergency home repairs (19 per cent) was the most common reason, behind impulse purchases (13 per cent) and lending money to friends (12 per cent). 

Only 31 per cent of those questioned are actively trying to cut costs, while 36 per cent have no specific end target in mind when they are saving.

Richard Fearon, head of Halifax Savings, said: "It can be extremely hard to establish, and stick to, a savings habit, particularly at expensive times of the year or when it's tempting to treat yourself to something to cheer up the gloomy winter month."

However, he added setting savings goals can make the whole process much easier, as people will then have an end goal in mind and something to aim for, instead of just randomly putting money aside. 

When consumers were asked what they are most likely to save for, nothing in particular emerged on top, followed by a holiday, retirement, a house deposit and a car. The south-west was the only region to put away more money than was taken out over the course of the last three months.

By Joe White