UK markets close in 1 hour 17 minutes
  • FTSE 100

    5,540.99
    -188.00 (-3.28%)
     
  • FTSE 250

    17,168.37
    -419.34 (-2.38%)
     
  • AIM

    948.53
    -24.00 (-2.47%)
     
  • GBP/EUR

    1.1067
    +0.0007 (+0.06%)
     
  • GBP/USD

    1.2996
    -0.0045 (-0.35%)
     
  • BTC-GBP

    10,098.26
    -422.69 (-4.02%)
     
  • CMC Crypto 200

    259.95
    -12.73 (-4.67%)
     
  • S&P 500

    3,297.07
    -93.61 (-2.76%)
     
  • DOW

    26,692.29
    -770.90 (-2.81%)
     
  • CRUDE OIL

    37.40
    -2.17 (-5.48%)
     
  • GOLD FUTURES

    1,871.60
    -40.30 (-2.11%)
     
  • NIKKEI 225

    23,418.51
    -67.29 (-0.29%)
     
  • HANG SENG

    24,708.80
    -78.39 (-0.32%)
     
  • DAX

    11,515.53
    -548.04 (-4.54%)
     
  • CAC 40

    4,536.74
    -193.92 (-4.10%)
     

Coronavirus: 50% of Brits had zero savings to fall back on during COVID-19

Kalila Sangster
·2-min read
Broken whiter ceramic piggy bank in pieces on red surface
One in eight Brits have spent 100% of their savings during the coronavirus pandemic. Photo: Getty

Half of Brits had no savings before the outbreak of COVID-19, putting them in a vulnerable financial situation during the coronavirus pandemic, according to a new survey by budgeting fintech bank Thinkmoney.

Almost half (46%) of those 1,000 surveyed have had to fall back on their savings this year with one in eight (12%) spending 100% of their savings.

One in 10 have spent between 50% and 75% of their savings during the pandemic, while 18% of respondents have spent 10% of their savings.

A further 4% of Brits surveyed had to borrow credit or take out a loan to try to survive the financial struggle that came as a result of COVID-19.

The region which has experienced the most financial struggle during the coronavirus pandemic and resulting lockdown is Yorkshire & the Humber, with almost 1 in 6 (18%) residents spending 100% of their savings.

READ MORE: Coronavirus: Ethnic minorities most at risk from debt

They are followed by the West Midlands, where 16% of survey respondents went through all of their savings.

Both Yorkshire and the West Midlands have a large number of their workforce — 10% to 12%, according to Thinkmoney — within the manufacturing industry, which has been one of the hardest hit sectors in the UK.

Make UK, the manufacturers group, said in July over 40% of its members had already laid off workers and a third of members were planning to make cuts in the coming six months.

Scotland, the East Midlands, and the East of England all reported 14% of respondents using up all their savings.

The South West is the region that has been the least financially impacted by COVID-19, with just 4% of residents surveyed spending 100% of their savings.