The personal savings rate of UK households reached a record high in 2020, during the first coronavirus lockdown.
Since then, consumers have battled high interest rates and a persistent cost of living crisis, which has meant many householders have had to tap into savings to cope with rising costs. The number of individuals, for instance, who made an unauthorised withdrawal from a Lifetime ISA, and therefore paid a penalty fee, increased by 139% between 2020/21 and 2023/24.
