Families are raiding piggy banks to survive
Family saving has slumped to its lowest level for four years after a fall of billions of pounds as people "raid" their piggy banks to keep afloat, according to a new report.
The TUC said the amount of money being saved by families across the country has fallen from £20.1bn to £11.4bn as consumer spending increased by 4.2%.
The union organisation said its research showed how "fragile" the UK's economic recovery is, warning that spending savings was not a sustainable option for the country's prospects.
General secretary Francis O'Grady urged the Government to do more to help boost household incomes, adding: "This analysis shows that Britain's fragile recovery is being propped up by families raiding their piggy-banks.
"It looks like recent news has been driven by running down savings and Government propping up the housing market.
"This is hardly a sustainable route to recovery, and looks too much like a repeat of trends that drove the crash. A sustainable recovery needs to be based on growth, investment and a recovery in living standards. That's why Britain needs a pay rise," said O'Grady.