It has been a few tough years for people in Britain, much of 2020 and 2021 was wiped out with COVID lockdowns and then just as things were getting back to normal the war in Ukraine has lead to a cost of living crisis with price of ingredients soaring sky high, energy costs shooting up and very high interest rates for those with mortgages or borrowing money.
Lockdown Savings Were At An All Time High
Lockdowns in the UK were imposed in March 2020 and lasted for 18 months with varying degrees of restrictions around them once people were allowed out. A lot of focus was put on the impact it would have on businesses, particularly those that relied upon volume of people like hospitality and in particular, travel. One thing people didn’t foresee happening however was just how much money would be saved by being restricted to your home and only allowed to go to the supermarket or out for some exercise. On average, people in the UK are able to save 16% of their monthly income but during the lockdowns this shot up to 26% due to working from home. There were no travel costs, no going out for drinks or meals or holidays. It was expected that following this there would be a big boom of spending once restrictions were relaxed but this never occurred, people held on to their savings for a rainy day on the whole.
Cost Of Living Crisis
After finally breaking free form …