UK households’ savings fall to record low in warning sign for economy

Figures suggest people are increasingly dipping into their savings as disposable income also falls

British households ran down their savings to a record low at the end of 2016, raising fears that the UK is on course for a fresh consumer debt crisis in the wake of the Brexit vote.

The saving ratio - which estimates the amount of money households have available to save as a percentage of their total disposable income - fell sharply in the fourth quarter last year to 3.3% from 5.3% in the third.