Monthly savings fall, take home pay down

Brits were saving less over the last three months as incomes fell, according to new figures.

The National Savings & Investments (NS&I) quarterly savings survey reveals the average take home income fell 5.47 per cent to £1,264.60 from a year ago, and correspondingly monthly savings fell 3.91 per cent to £177.16 for those who save regularly.

Average monthly savings per head fell to £89.84.

As talk of recession gathers pace, the data also shows people were cutting down on spending and wanted to save more.

The number of people admitting overspending fell to 27 per cent, from 37 per cent a year ago, while the amount people wanted to save rose from £180.91 to £185.76.

The NS&I data also showed the financial hit Valentine's Day caused and penury people face for romance.

Men on average expect to spend £50.21 on a date, while women fall back on hackneyed gender stereotypes and just pay £32.49.

With the pressures of love bearing down – 28 per cent of men admitted they would delve into savings, while a forward-thinking 26 per cent said they would establish a 'date fund' to finance romance.

A quarter of men would try to impress a lady with the sparkle of their gold card and pay for it all by credit card.

Dax Harkins, senior savings strategist at NS&I, said: "There is no doubt that dating costs a lot, and many people in Britain need to think beyond impressing with wit and charm and also plan their finances.

"Given the expense, especially for men, it is great to see that some are setting money aside specifically for this reason. However it is clear that men need to keep at least a few of their thoughts on money when they're trying to impress on a date, so they don't end up overspending or being caught short of cash."