Half of Brits had no savings before the COVID-19 pandemic

Abigail Fenton
·2-min read
One in eight Brits have spent all their savings during the pandemic. Photo: Gareth Fuller/PA Archive/PA Images
One in eight Brits have spent all their savings during the pandemic. Photo: Gareth Fuller/PA Archive/PA Images

Half of all Brits had no savings prior to the COVID-19 pandemic, putting them in a vulnerable position before the crisis even began, research suggests.

While 46% of Brits have had to dip into their savings this year, according to a survey of 1,000 by thinkmoney.

However, half had no savings to dip into – leaving many to live on reduced wages or benefits.

The remaining 4% have had to borrow credit or take out a loan as a means of trying to survive the financial struggle that has come with the coronavirus crisis.

Of those with savings, one in eight or 12% have now used the money they set aside, just to survive this year.

READ MORE: Coronavirus – Two in three Brits worried they won't be able to buy food and clothes

One in 10 have spent between half and three quarters of the money they had saved.

Meanwhile, 6% have spent a quarter of their savings, and 18% have spent 10%, the survey found.

Those in Yorkshire and the Humber been hit hardest, with nearly a fifth (18%) now having used up all their funds.

It's a similar tale in the West Midlands, where 16% of Brits have spent all of their savings, placing them second as the most impacted.

About 10% and 12% of Yorkshire and the Midlands' workers, respectively, are – or were – employed in manufacturing, which is among the industries most affected by the coronavirus pandemic – potentially explaining the discrepancy.

READ MORE: Coronavirus – One in five UK adults forced to move in with parents

Those in the east of England, east Midlands, and Scotland have also been disproportionately affected, with 14% of people in all regions losing all their savings to COVID-19.

On the other hand, the south-west has been the least financially impacted by the pandemic, with just 4% of residents surveyed spending 100% of their savings.

The study also found Brits aged 65 and over are more likely to have used all of their savings, at 13% – potentially due to older generations being more vulnerable and having to shield.

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