The Office for National Statistics (ONS) has published a July 2018 report on household finances, which shows that households are borrowing more and saving less.
On average, each UK household spent or invested around £900 more than they received in income in 2017. For the first time in 30 years, outgoings now surpass income.
Further findings include:
- The gap between disposable income and spending per head has closed by around £1,100 since 2015, to the narrowest in 11 years.
- In the early 1990s, the average household had around £120 left over to save from every £1,000 of income. By 2017, this was just £41.
- Households’ investment reached a record high of £74 billion in 2017.
- The stock of consumer credit has risen by nearly one-third in the last five years.