A rise in consumer spending has seen savings levels drop to their lowest level in 13 years.
According to The Office for National Statistics, there has been a “sharp decline” in savings due to a rise in consumer spending. Savings fell by £68.9bn between 2005 and 2017, leaving UK households collectively £8.4bn in the red. Consumers have been borrowing to maintain lifestyles, with less cash available to them from their earnings. As The Telegraph explains: “This has partly been triggered by low rates of real wage growth, as pay rises have been eaten into by higher inflation”.