The latest proprietary insight from Moneyhub, the market-leading data and payments platform’s Financial Wellness Tracker, reveals that consumer capacity to save without making any changes to their overall spending behaviour fell 25.5% over the 12 months to end September 2024.

Simultaneously, total cash held in savings dropped by 11.6% as the recent turbulent financial times continued to play out and inflation persistently remains above the target 2%. 

Indeed, consumers' essential spending needs (e.g. mortgage/rent, utilities and groceries) rose by 3.4% over the last 12 months, contrastingly their discretionary spending, where there is an element of choice, also rose by 1.4% over the year.

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 ratios. 

Commenting on the monthly findings, Samantha Seaton, CEO, Moneyhub, said: “While inflation has dropped, which is great news for all, the data is telling us that the effects of the cost of living crisis are still being felt by consumers, as seen in their spending and savings habits. An individual’s capacity to save without making significant lifestyle changes has once again weakened, which will be troubling to many as the ability to save gives a sense of comfort and security.

“Access to cash when it’s most needed bolsters an individual's overall sense of well-being. It is essential that businesses are doing as much as they can to support their customers in making the financial choices that are right for them and their circumstances. Being able to show customers a full view of their financial worlds, in a single place, combined with personalised, consent driven smart nudges, via platforms such as Moneyhub, helps consumers make more informed financial choices leading to a better outcome for all.”