- Lockdown led to increased savings for nearly a third of adults
- Those in higher socio-economic grades were nearly twice as likely to say they were able to save more
- However, under 24s were hit hard with nearly one in five saying the amount they could save had decreased “a lot”
New research1 from EQ (Equiniti Group plc) has found that millions of Brits benefited financially from the first lockdown with nearly a third saying they were able to save more since the outbreak of coronavirus in March. However, disparities across socio-economic groups herald alarm bells as the UK heads into a second national lockdown.
One in 14 (7%) adults over 18 said that they were able to save “a lot” more with just under a quarter (24%) revealing that their savings increased “a little.”
However, there was a clear split between socio-economic groups with those in the higher social grades nearly twice as likely to be able to save more through the unprecedented economic period. Four in ten (38%) of those in the ‘white collar’ ABC1* demographic said that they have been able to save more since March compared to just 22% of those in the ‘blue collar’ C2DE** group.
Age also made a significant difference to people’s saving abilities. A third of under-24s (33%) said that the amount they were able to save had decreased, with nearly 17% saying it had decreased a lot. In contrast, under a fifth (19%) of over 55s said the amount they could save had decreased.
Paul Matthews, CEO of EQ’s Boardroom division, said the lockdown had changed attitudes to saving leading to many people putting more money away towards long-term savings and considering different ways of saving such as workplace Save-As-You-Earn (SAYE/Sharesave) schemes, commenting:
“When the government asked the British population to stay at home on March 23 it fundamentally changed the way we think about savings. Many of the non-essential items we usually spend our money on were instantly stripped away for millions of Brits – a trip to the cinema, a morning takeaway coffee, foreign holidays – meaning they have the ability to save more cash.
“Additionally, some essential purchases such as the cost of the daily commute were also removed while caution over economic outlook prompted many households to increase or create their rainy day fund to protect against the future financial impact of the pandemic. The market dip also created an opportunity for many employees to benefit from lower option prices by joining tax-advantaged SAYE schemes offered by their employers.
“However, the flip-side of the lockdown saw millions of workers furloughed fearing for their jobs. The decrease to their monthly pay packet and removal of income for many self-employed has seen these people struggle to keep up with their usual saving habits which our data shows has disproportionately impacted younger age groups and those in lower socio-economic groups.
“As we head into a second national lockdown, it is important to remember that help is available for those facing financial problems. The Money Advice Service and Citizens Advice are good resources that people can use to identify where they may be eligible for the government’s schemes or where they can access mental health support as we head into winter.
“It’s also worth people talking to their credit providers as soon as finances become uncomfortable. As we see with our clients, companies are adapting their processes to do all they can to support customers through these difficult times.”
* ABC1 – A = Higher managerial, administrative and professional; B = Intermediate managerial, administrative and professional; C1 = Supervisory, clerical and junior managerial, administrative and professional
** C2DE – C2 = Skilled manual workers; D = Semi-skilled and unskilled manual workers, E = State pensioners, casual and lowest grade workers, unemployed with state benefits only
1 – Fieldwork conducted by YouGov on behalf of EQ between 11th and 14th September 2020. The sample size was 2,008 GB adults aged over 18.
For more information:
Tel: +44(0)20 7353 4200
Notes to Editor:
About EQ (Equiniti Group plc)
EQ is an international technology-led services and payments specialist. With over 5,000 employees, it supports 36 million people in 120 countries and serves c.70% of the FTSE 100. EQ’s purpose is to care for every customer and simplify every transaction, delivered with less of an impact on the environment.
EQ is listed on the London Stock Exchange as Equiniti Group plc.
Find out more https://equiniti.com/
EQ serves clients and customers through four divisions:
EQ Boardroom: Share registration, governance and investor relations advisory, and employee benefits services
EQ Digital: Helping regulated businesses and Government to manage customers through innovative digital solutions
EQ Paymaster: Pensions, annuities, flexible benefits and payroll for the UK’s largest public and private sector organisations
EQ U.S.: Transfer agency, equity compensation services and digital solutions for U.S. firms; serving the world's leading brands since 1929