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Household Saving of UK Falls to an Alarming Low Level

  • British households are on course for a fresh consumer debt crisis, reports say.

    Reports say that in the fourth quarter of 2016, savings as a percentage of total disposable income of British household has fallen to an alarming 3.3 per cent during fourth quarter from 5.3 per cent during third quarter.

    Office for National Statistics (ONS) says that this figure is the lowest since 1963.

    TUC general secretary, Frances O’Grady, has said that the double whammy of rising prices and stalled wage growth has led to fall in disposable income (a 0.4 per cent fall in comparison to previous 3 months).

    This in turn is making people of UK in using their savings to maintain spending. Bank of England report shows that consumer credit has increased rapidly, indicating a debt-fuelled spending.