The latest proprietary insight from Moneyhub, the market-leading data and payments platform, and their Financial Wellness Tracker reveals that consumer cash savings rose by 6.2% in the 12 months to October 2024. 

However, despite inflation falling over the year and the cost of living crisis easing, an individual’s capacity to potentially save further, after their average essential and discretionary spending, has fallen by 3% over the same period. This coincides with essential and discretionary spending rising on average by 0.4% and 0.1% respectively.

In addition, the consumer debt to income ratio has risen by 7.2%.

Moneyhub’s Financial Wellness tracker, released each month, tracks consumer spending and saving trends across five key indices; savings, savings capacity, spending on essentials, discretionary spending, and debt to income ratio. For the full tracker click here

Commenting on the monthly findings, Samantha Seaton, CEO, Moneyhub, said: “Given the somewhat turbulent financial times we have been through in the last few years, it’s encouraging to see that consumers' cash savings are on the rise. This could very well be down to the favourable interest rates savers have been enjoying. 

“However, while inflation has dropped back to more acceptable levels, essential and non-essential spending have nudged up over the year. Coupled with the fact that an individual’s capacity to make additional savings is still in negative territory, this remains worrying, especially with many individuals still trying to decipher what the recent Budget means for their household finances. 

“The rise in both debt-to-income ratio and cash savings suggests that people may be holding onto their savings while increasing their credit use. As everyone’s circumstances are unique, having a 360 degree view of their own finances is essential to making good financial decisions. 

“Businesses can play a pivotal role in helping their customers here.  By providing solutions like Moneyhub, which can offer a complete overview of a customer's financial world, including income, expenses, savings and investments, companies can help deliver better outcomes for their customers. Such platforms also ensure that businesses offer the right rates and products for an individual's circumstances and throughout every interaction and stage of the relationship. This approach aligns with the principles of Consumer Duty.”