28% of households have less than £250 in accessible savings, while six million UK households could not survive until the weekend on savings, according to first direct.
The bank’s survey of over 1000 UK households suggests that 21% have no savings at all to fall back on and 7% have savings less than £250 set aside as a financial safety net. This is the equivalent of just three days average monthly household take home pay and with average monthly household outgoings currently £1,536, these savings would last just five days.
Those aged between 25 and 34 are the least prepared for a financial emergency 39% have less than £250 in savings, with 30% saying they have nothing set aside at all. Women are far less prepared than men 24% admit they have no savings and 8% have less than £250 set aside compared to 16% and 6% of men respectively. Across the UK, people in the North East are least likely to have any savings set aside at all with 33% admitting they have no financial safety net.
32% of people admit they would be unable to cover their rent or mortgage at all if they were to unexpectedly lose their main source of income. Worryingly, 11% of people would use a personal loan or credit card and a further 11% their overdraft to help pay for essential outgoings in the event of a redundancy.
Bruno Genovese, head of savings at first direct, said: “These findings demonstrate a worrying lack of financial preparation among the British public. With the current climate of uncertainty