People ‘have been saving less this winter’

Savings levels in Britain have significantly dropped this winter, suggesting people could be flirting with debt, a study has shown.

According to NS&I’s Savings Survey, the population is putting aside less money than it has for the previous two years.

Average savings now stand at £81.94 per month – a drop compared to this time in 2008 (£90.12).

It means that the British public is currently conserving 6.25 per cent of their monthly income, which is the lowest level since 2007 and a decrease from last year (6.48 per cent).

Tim Mack, senior savings spokesman at NS&I, said: “With the new financial year approaching, now is a good time for people to take a closer look at their finances and set themselves goals for the years ahead.”

Earlier in the week, figures released by Credit Action showed that the average UK household debt is almost at the £60 million mark.

By Joe Shervin