Households hoard £7,000 Covid savings as prices spiral

Families have saved nearly £7,000 since the Covid outbreak, largely due to lockdowns when they have been unable to spend money on pubs, restaurants, ‘non-essential’ shops, travel and holidays.

But they’re unwilling to spend big now to make up for lost time, instead being buffeted by inflation and soaring bills, forcing consumers to shop less and shop more carefully.

Households saved £195.9 billion between the start of 2020 and the end of 2021, according to the Office for National Statistics.

Before the pandemic, families typically saved about 6 percent of their income. At the height of the first lockdown in 2020, they set aside nearly a quarter of their income as income was bolstered by programs like furloughs while spending opportunities plummeted.

Of that cash, which averages nearly £7,000 per household, the ONS estimates three quarters, or £140billion, was “forced to save” as lockdown rules made the money difficult to spend. That accounts for around 10 percent of the nation’s disposable income, which had sparked hopes that shoppers would enthusiastically return to the high streets once the pandemic subsided. Households hoard £7,000 Covid savings as prices spiral

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