UK households are saving more money than at any point since the 2008 financial crash, cutting back on luxuries and cancelling plans according to new research.
Data from free credit score service CredAbility reveals that there is a clear shift in behaviour as families tighten their belts amid rising prices and economic uncertainty, with 48% of Brits believing “now is a good time to save”, up from 36% just a month earlier. In addition, 6 million (11%) Brits admit they have less than £100 in savings and 13.8 million (25%) are motivated by the goal of feeling financially secure.
Meanwhile, inflation has held at 3.8% for the third month in a row, up from 2.6% in March. Prices are growing almost twice as fast as the Bank of England’s target rate of 2%. While this is well below the record-breaking 11.1% peak in October 2022, it still represents the steepest price pressure in over a year, and the effects are being felt in every corner of the UK.
Aaron Peake, personal finance expert at CredAbility, explains: “The renewed rush to save is clear. Household impulses have switched from ‘spend now’ to ‘lock it away for a rainy day’. People aren’t just cutting back on luxuries – they’re skipping meals, cancelling plans and juggling payments to get through the week. And with inflation creeping back up, even those cost-saving habits might not be enough.
“Families are choosing security over spontaneity. With inflation still nearly double the Bank of England’s target, interest rates could stay higher for longer, keeping borrowing expensive for credit cards, loans, and mortgages.”
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