27th October 2014
Despite many people still feeling the pinch of austerity, research from Lloyds Bank claims that many in full time employment are still accumulating spare cash each month.
After paying bills and buying essential items like food, some 70% of UK full-time workers have at least a quarter of their monthly income left over for discretionary spending.
Based on the average UK gross full time salary of £33,511, it means that over three quarters of people have at least £500 spare each month says Lloyds.
In the last three years the average monthly UK full time salary, after Tax and National Insurance, has risen from £2,048 in 2011 to £2,154 in 2014. This asserts the research is helping to give people more options on whether they should spend or save this spare money. However, it seems the saving habit is becoming easier, with 68% saying that if they have spare cash they are likely to save it. This is up from a low of 52% in November 2011.
Interestingly, 30%, or three in 10 have at least half of their income remaining after clearing household bills and essential items while one in 10 have at least three quarters of their monthly income left at the end of each month.
Lloyds Bank savings director Philip Robinson highlighted that the UK is feeling increasingly positive about the future when it comes to discretionary spending.
He said: “More people think they will have more spare money in the future than less (-13% in September 2011 rising to +5% in September 2014). That theme is also seen in people’s outlook for saving, where the balance of opinion between those who believe they will save more over those who will save less, is up 11% points from 1% in September 2011 to 12% in September 2014.”