Overview

• Households with about £2,000 set aside had roughly 60% lower odds of bill arrears than those with under £200, according to University of Bristol research.
• Having one month’s income saved — about £2,900 for the average household — was linked to nearly a 75% reduction in the likelihood of falling behind on bills.
• The study, commissioned by the Building Societies Association for UK Savings Week, used a decade of Understanding Society data to track financial outcomes for around 7,000 people.
• Researchers describe £2,000 as a protective benchmark rather than a minimum, with savings of around £200 and small regular contributions such as £10 a month shown to help.
• Holding a basic savings account correlated with uptake of other products, and households with both savings and investments were five times more likely to report living comfortably, while charities note many families have under £1,000 available and continue to press for targeted debt relief.