The Money Stats – October 2019 – Wage Growth Positivity Offset By Overall Financial Picture

Striking Numbers

  • 2.0%: Increase in average real pay in the year to August 2019
  • 14.3%: Increase in debt enquiries handled by Citizens Advice in September 2019 in England and Wales, compared with September 2018.
  • 1.7%: Increase in Consumer Prices Index in the year to September 2019
  • 0.3%: Change in UK Gross Domestic Product in the three months to August 2019
  • £59,441: Average total debt per UK household in August 2019
  • £2,608: Average credit card debt per household in August 2019
  • 20.01%: Average credit card interest rate in September 2019
  • 26 years and 7 months: Time to pay off average credit card debt making only the minimum payment each month
  • 0.86%: Average interest rate on a cash ISA in August 2019

Every Day in the UK

  • The number of people unemployed in the UK fell by 134 per day in the year to August 2019.
  • Government debt increased by £105.8 million a day in the year to September 2019.
  • 14 properties were repossessed every day in Q2 2019 in England and Wales, or one every 1 hour and 43 minutes.
  • 340 people a day were declared insolvent or bankrupt in England and Wales in April to June 2019. This was equivalent to one person every 4 minutes and 14 seconds.
  • In Northern Ireland, there were 8 insolvencies per day and in Scotland 39 insolvencies per day.

Personal Debt in the UK

  • People in the UK owed £1,650 billion at the end of August 2019. This is up from £1,604 billion at the end of August 2018, an extra £876 per UK adult over the year.
  • The average total debt per household, including mortgages, was £59,441.
  • Per adult in the UK that’s an average debt of £31,284, around 110.7% of average earnings. This is up from a revised £31,218 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).
  • 408,000 18-24 year olds (10.8%) were unemployed in June to August 2019. This was 1,000 fewer than in March to May 2019.
  • 792,000 (11.5%) of 16 to 24-year-olds in the UK were not in education, employment or training (NEET) in April to June 2019, an increase of 28,000 from the previous quarter.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.431 trillion at the end of August 2019. This is up from £1.390 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 10.95 million households with mortgage debt was £130,722 in August 2019.
  • The average mortgage interest rate was 2.42% at the end of August. Based on this, households with mortgages would pay an average of £3,163 in mortgage interest over the year.
  • For new loans, the average mortgage interest rate was 2.06%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £3,612 in interest over the year.
  • According to UK Finance, gross mortgage lending in August 2019 totalled an estimated £24.0 billion, 3.2% down on August 2018.

Savings and Pensions

  • The average interest rate for an instant access savings account, not including bonus interest payments, was 0.42% in August 2019. For a cash ISA, this was 0.86%.
  • 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 August 2019, consumer credit increased by 2.1% according to the Bank of England, while outstanding levels of credit card borrowing grew by 0.3%, a rate of growth which is significantly lower than in 2018.
  • 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 20.01% in September 2019. This is 19.26% 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 August 2019 compared to March to May 2019, according to the latest estimates from the Office of National Statistics.
  • The CPI (Consumer Prices Index) increased by 1.7% in the year to September 2019, the same as in the year to August 2019.
  • The highest rates of inflation over the 12 months to September 2019 were for communication (4.1%), restaurants and hotels (3.2%) and education (3.2%). The lowest was for clothing and footwear (-1.0%.)

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.