Borrowing and saving
On 23rd March 2023, the Bank of England increased the Bank Rate by 0.25 percentage points, to 4.25%; this is the highest level in 14 years.
This affects the interest rates that banks charge customers to borrow and that they pay to customers for their savings. The Office for National Statistics (ONS) continue to monitor the impacts on household finances.
In the latest period (8th to 19th March 2023), ONS statically information shows that one in four (25%) adults reported using their savings because of the rising cost of living (26% in the previous period).
Around one in four (24%) adults have had to borrow more money or use more credit in the last month, compared with a year ago. This is an increase from around one in five (18%) adults when we first asked this question in the period 3 to 14 November 2021.
Around a third (36%) of adults who are currently making rent or mortgage payments reported that these payments have gone up in the last six months; this is an increase of 7 percentage points (29%) from when we first asked this question during the period 3rd to 14th November 2021.