Can we keep our lockdown savings habit?
Oct 02, 2020, 10:35 PM
Lockdown Britain has produced a nation of savers, ONS figures showed this week, with people salting away almost 30% of their disposable income on average.
But for those hoping that we might finally have got the savings habit, there’s a catch.
Those figures cover April to June, a three-month period when most shops were shut, along with pubs, restaurants, hotels and B&Bs, and going on holiday was a near-impossible task.
Deprived of the opportunity to spend, Britain put money aside instead – but is not spending the same as saving?
On this week’s podcast, Simon Lambert, Lee Boyce and Georgie Frost dive into the lockdown saving phenomenon and look at what triggered it, whether there was anything other than an inability to spend that drove saving so much higher than in previous recessions and how the paradox of thrift plays out.
They also look at where people can put the money they have set aside – with interest on savings deals negligible – and whether the sudden imposition of a savings habit bodes well for people building up better nest eggs when life gets back to normal.
Some won’t have been so lucky in lockdown, however, with job losses mounting. The team look at how this affects those already committed to moving home.
And finally, are brand new mobile phones a waste of money? Chasing the latest handset is an expensive game, but a new breed of cheap but high quality phones are changing the minds of some of those committed to holding onto old ones.