The Money Stats – September 2019 – The Rising Cost of Everyday Life

Striking Numbers

  • £4.05 per day: Average per household cost of water and energy in Q1 2019
  • £28.16 per day: 2019 cost for a lone parent family of raising a child to its 18th birthday
  • £59,319: Average total debt per UK household in July 2019
  • 1.7%: Increase in Consumer Prices Index in the year to August 2019
  • 0.85%: Average interest rate on a cash ISA in July 2019
  • 19.99%: Average credit card interest rate in July 2019
  • £2,609: Average credit card debt per household in July 2019
  • 26 years and 7 months: Time to pay off average credit card debt making only the minimum payment each month
  • 0.0%: Change in UK Gross Domestic Product in the three months to July 2019

Every Day in the UK

  • The population of the UK grew by an estimated 1,083 people a day between 2017 and 2018.
  • Government debt increased by £102.5 million a day in the year to August 2019.
  • 1,065 people a day reported they had become redundant in May to July 2019.
  • Net lending to individuals and housing associations in the UK grew by £126 million a day in July 2019.
  • Borrowers paid £139 million a day in interest in July 2019.

Personal Debt in the UK

  • People in the UK owed £1,647 billion at the end of July 2019. This is up from £1,600 billion at the end of July 2018, an extra £888 per UK adult over the year.
  • The average total debt per household, including mortgages, was £59,319.
  • Per adult in the UK that’s an average debt of £31,220, around 110.5% of average earnings. This is up from a revised £31,145 a month earlier.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.429 trillion at the end of July 2019. This is up from £1.386 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 10.95 million households with mortgage debt was £130,460 in July 2019.
  • The average mortgage interest rate was 2.42% at the end of July. Based on this, households with mortgages would pay an average of £3,157 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 £3,603 in interest over the year.
  • According to UK Finance, gross mortgage lending in July 2019 totalled an estimated £26.1 billion, an increase of 2.9% on July 2018.

Savings and Pensions

  • The average interest rate for an instant access savings account, not including bonus interest payments, was 0.41% in July 2019. For a cash ISA, this was 0.85%.
  • In Q1 2019, households saved an average of 4.4% of their post-tax income, including benefits. This compares with 4.1% in Q1 2018. From 2000 to 2015, the savings rate fluctuated mostly in the 6-10% range, with a post-crash peak of 12% in Q3 2009.
  • If someone on the average salary saved 4.4% of their income in an average instant access savings account for a year, they would receive £4.15 in interest after tax. If they saved it in an average cash ISA, they would receive £10.24.

Spending and Loans

  • In the year to July 2019, consumer credit increased by 2.2% according to the Bank of England, while outstanding levels of credit card borrowing grew by 0.7%, a rate of growth which is significantly lower than in 2018.
  • In Q1 2019, households in the UK spent £111.27 million a day on water, electricity and gas, or £4.05 per household per day. On a seasonally adjusted basis, this was the same as in Q4 2018.
  • The average interest rate on credit card lending bearing interest was 19.99% in July 2019. This is 19.24% 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 was flat (0.0% change) in the three months to July 2019 compared to February to April 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 August 2019, a fall of 0.4% on the year to July 2019.
  • The highest rates of inflation over the 12 months to August 2019 were for communication (3.6%), alcohol and tobacco (3.3%) and education (3.1%). The lowest was for clothing and footwear (-0.9%.)

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.