How Britain’s ‘accidental savers’ have squirreled away £170bn after a year of lockdowns
Households squirreled away another £18.5billion in January – taking the war chest built up by ‘accidental savers’ to £170billion.
Workers who have been able to keep their job during lockdown have built up piles of money after the coronavirus put a stop to eating out and travelling.
Bank of England chief economist Andy Haldane is relying on this buffer to fuel Britain’s economic growth when lockdown ends, as consumers who have been stuck in at home for the best part of a year rush to spend again.
Fortunate workers who have been able to keep their job during lockdown have built up piles of money after the coronavirus put a stop to eating out and travelling
After another month of staying indoors in January, that war chest was even bigger. Household bank deposits edged up by £18.5billion to £1.65 trillion in January, according to the Bank of England.
This is up from £1.48 trillion at the start of 2020, meaning Britons in total have bumped up their bank accounts by £170billion.
Haldane thinks the ‘accidental savings’ pile will hit £250billion by the end of June, when lockdown restrictions are due to end.
If just 5 per cent of this is spent, as the Bank of England conservatively predicts, that would help to plug the hole in the coffers of shops, restaurants and travel firms.