Janus Henderson
With the real income squeeze likely to impact the majority of households in the UK , we believe that companies that offer consumers good value in this environment should benefit
significantly increased . Together with the government ’ s proposed increase in National Insurance – which is set to rise by 1.25 percentage points – and the Bank of England raising interest rates , consumers are facing real pressure on their living standards . While household savings accumulated during the pandemic – the UK savings ratio rose rapidly during this period – which will help soften the impact , this is arguably a blunt tool to determine the underlying financial health of the average household . In fact , while the average savings in the UK are £ 76k per household , this is skewed by a small number of homes with very high savings levels . The median family in the UK has savings of £ 12.5k , meaning 50 % of households
Issue 84 - May 2022 / 39 /