Pandemic led to £140bn-worth of ‘forced saving’, ONS says

Household saving peaked at record 23.9 per cent between April and June 2020, Chiara Giordano reports

The coronavirus pandemic led to £140bn-worth of ‘forced saving’, according to ONS analysis (Getty Images)

More than £140 billion worth of household savings during the coronavirus pandemic were “forced” because of a lack of spending opportunities, the Office for National Statistics (ONS) has estimated.

About three-quarters of the increase in household saving during the Covid-19 crisis was the result of forced saving - amounting to more than £140 billion or about 10 per cent of annual household disposable income - the ONS said.

People often save to give themselves a protective buffer in case they have a big expense or a sudden drop in income.