It seems our lack of social lives for the past few months has paid off as a new study has found that households in the UK could have saved as much as one fifth of their income during lockdown, as spending it on ‘extras’ hasn’t been possible.
Analysis from the Office for National Statistics (ONS) found that in the financial year ending March 2019, UK households spent an average of £182 per week on activities that have since been largely prevented by Government guidelines – such as travel, holidays and meals out.
This is equivalent to 22 per cent of a usual weekly budget of £831, money that households could be saving, spending in other areas or using to cover any loss of income, the ONS said.
Across all households, more than half (53 per cent) of usual spending covers essentials such as food and housing costs, the ONS said.
However, it noted that younger households, renters and those living in London spend a lot proportionally on essentials and relatively little on goods and services that have been unavailable under lockdown, the analysis found. This could limit their ability to cut back if their income shrunk. Londoners spend an average of 31.5 per cent of their income on rent each month, for example.
To help households under increased financial pressure, some companies – including mortgage providers and gas, electricity and water suppliers – have offered payment holidays on regular bills.
The ONS estimates that nearly two-fifths (39 per cent) of household spending on essentials could be subject to a payment holiday, equivalent to £173 per week.
Lockdown has also seen nearly one in four Brits furloughed through the government's scheme, which means they are paid at 80 per cent of their regular pay.
Additional reporting by PA.
