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UK Economy - Will Household Saving Collapse?

Geoff Riley

1st October 2022

In tough economic times, people often aim to save more when there is uncertainty and confidence is low. But the surging cost of living and rising mortgage bills threatens to cause a significant drop in household savings in the UK in 2023. Indeed millions of people, especially those in lower income deciles, may be left with few if any savings and unable to pay an unexpected bill.

The household saving ratio measures the percentage of disposable income that is saved rather than spent.

With energy prices rising and mortgages becoming more expensive, we may see a sharp fall in household savings.

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