UK’s richest can save £18,680 a year as poorest 40% spend more than they earn
Bearing in mind it costs more to live in the countryside this article throws a really interesting spotlight onto the world of the rural poor in England. It tells us:
The richest 20% of the population in Britain will have, on average, the spare sum of £18,680 to put into their savings this year, while the poorest 20% will spend £1,910 more than they earn, latest figures suggest.
In research published this Thursday, the Post Office said saving was still being driven by the wealthiest people while lower earners were suffering a debt crisis. According to the Centre for Economics and Business Research, which undertook the analysis, this trend has been happening for the past 12 years.
The poorest 40% of the population have spent more than they have earned over this period, in contrast to the top 40% of earners who had money to save every year.
Even during the financial crisis of 2007-2008 those in the highest income brackets had enough disposable income to increase the amount they saved annually. By contrast, the rise of payday lenders in Britain’s “Wonga economy” symbolised the squeeze on living standards faced by ordinary families, the report says.
Henk Van Hulle, head of savings and investments at the Post Office, said: “These figures are incredibly worrying. While the UK’s highest earners continue to account for the majority of savings, the poorest in our society are actually spending more than they earn.”
Despite the economy’s “green shoots” the poorest 20% would continue to spend more than they earned, though the researchers forecast that the figure would fall to £1,053 by 2018, based on average incomes and spending patterns.