The Money Statistics November 2019

Striking Numbers

  • £494.60: Median weekly full-time pay for employees aged 22-29
  • £390: Median monthly private rent in England for a single room with shared facilities
  • £35,950: Average student debt for the latest cohort to enter repayment
  • £50,581: Average first-time buyer house deposit
  • 1.8%: Increase in average real pay in the year to September 2019
  • £2,603: Average credit card debt per household in September 2019
  • 20.03%: Average credit card interest rate in September 2019
  • 0.88%: Average interest rate on a cash ISA in September 2019
  • £59,823: Average total debt per UK household in September 2019

Every Day in the UK

  • On average, a UK household spends £4.18 a day on water, electricity and gas.
  • Citizens Advice Bureaux in England and Wales dealt with 2,612 debt issues every day in the year to October 2019.
  • The number of UK mortgages with arrears of over 2.5% of the remaining balance fell by 20 a day.
  • Borrowers paid £140 million a day in interest in September 2019.
  • Net lending to individuals and housing associations in the UK grew by £137 million a day in September 2019.

Personal Debt in the UK

  • People in the UK owed £1,661 billion at the end of September 2019. This is up from £1,612 billion at the end of September 2018, an extra £930 per UK adult over the year.
  • The average total debt per household, including mortgages, was £59,823.
  • Per adult in the UK that’s an average debt of £31,485, around 111.4% of average earnings. This is up from a revised £31,407 a month earlier.

Young People

  • In England, the average student debt per borrower at the end of 2018-19 was £22,984. In Wales it was £15,441, in Northern Ireland £16,443 and in Scotland £10,904.
  • The average student debt for the latest cohorts to enter repayment was £35,950 in England (2019), £22,920 in Wales (2019), £23,550 in Northern Ireland (2018) and £13,800 in Scotland (2019).
  • 409,000 18-24-year olds (10.8%) were unemployed in July to September 2019. This was 10,000 fewer than in April to June 2019.
  • 800,000 (11.6%) of 16 to 24-year olds in the UK were not in education, employment or training (NEET) in July to September 2019, an increase of 43,000 over the last year.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.436 trillion at the end of September 2019. This is up from £1.393 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 10.96 million households with mortgage debt was £130,978 in September 2019.
  • The average mortgage interest rate was 2.40% at the end of September. Based on this, households with mortgages would pay an average of £3,143 in mortgage interest over the year.
  • For new loans, the average mortgage interest rate was 2.02%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £3,519 in interest over the year.
  • According to UK Finance, gross mortgage lending in September 2019 totalled an estimated £22.3 billion, 3.7% higher than in September 2018.

Savings and Pensions

  • The average interest rate for an instant access savings account, not including bonus interest payments, was 0.42% in September 2019. For a cash ISA, this was 0.88%.
  • In Q2 2019, households saved an average of 6.8% of their post-tax income, including benefits. This compares with a revised 5.9% in Q2 2018. From 2000 to 2015, the savings rate fluctuated mostly in the 6-10% range, with a post-crash peak of 12.9% in Q1 2010.
  • If someone on the average salary saved 6.8% of their income in an average instant access savings account for a year, they would receive £6.46 in interest after tax. If they saved it in an average cash ISA, they would receive £16.53.

Spending and Loans

  • In the year to September 2019, consumer credit increased by 3.1% according to the Bank of England, while outstanding levels of credit card borrowing fell by 0.1%, a reversal pf the direction of change since 2018. This may be due to the FCA’s new rules on persistent credit card debt.
  • In Q2 2019, households in the UK spent £115.96 million a day on water, electricity and gas, or £4.18 per household per day. On a seasonally adjusted basis, this was 5.0% more than the revised figure for Q1 2019.
  • The average interest rate on credit card lending bearing interest was 20.03% in October 2019. This is 19.28% above the Bank of England Base Rate of 0.75%.

Financial Inclusion

  • According to the FCA, in the UK in 2017 there were 1.3 million people who did not have a bank account.
  • According to ONS, there were 11,065 bank and building society branches in the UK in 2018. This was a reduction of 2,280 branches (17%) since 2012.
  • According to the 2019 Access to Cash Review, 2.2 million people use only cash in their daily transactions.

The Bigger Picture

  • The UK economy grew by 0.3% in the three months to September 2019, according to the latest estimates from the Office of National Statistics.
  • The CPI (Consumer Prices Index) increased by 1.5% in the year to October 2019, 0.2% lower than for the year to September 2019.
  • The highest rates of inflation over the 12 months to October 2019 were for alcoholic beverages and tobacco (3.5%), communication (3.4%), and restaurants and hotels (3.2%). The lowest was for housing, water, electricity, gas and other fuels (0.3%.)

About The Money Charity:

The Money Charity is the UK’s financial capability charity. Our vision is that everyone has the ability to be on top of their money as a part of everyday life. We empower people across the UK to build the skills, knowledge, attitudes and behaviours to make the most of their money throughout their lives.