Savings Stack up in the South as Divide with North Emerges

    LONDON, ENGLAND, December 15, 2011 /24-7PressRelease/ -- When it comes to savings, customers in southern1 England are outsaving those in northern regions by almost 13%, according to latest research from Halifax. Customers in southern England have an average balance of GBP8,734 compared to GBP7,759 in northern areas of the UK.

Largest Balances

There is a wide variation in average balances between regions; the biggest savers are in East Anglia with an average balance of GBP9,172; the lowest average balances are in Scotland (GBP7,332) - a difference of 25%. The average for the UK is GBP7,7882. [See Table 1]

At a local level, the highest average balances are held by residents in South Buckinghamshire (GBP13,500); followed by Kensington and Chelsea (GBP13,366) and Mole Valley (GBP13,002). Eighteen of the top twenty savings areas are in southern England. The two exceptions are Derbyshire Dales (GBP11,410) and Hambleton (GBP11,316). [See Table 2]

The highest average balance in Scotland is in Aberdeen (GBP10,640). In Wales it is in Powys (GBP9,675) and in Northern Ireland in Coleraine (GBP9,148).

Lowest Balances
The nation's lowest savers are in North Lanarkshire with an average savings balance of GBP3,579; over 50% below the UK average, and almost 75% below the average in South Buckinghamshire.

Whilst five of the ten lowest savings areas are in the capital - including Hackney (GBP4,256), Newham (GBP4,624) and Lewisham (GBP5,141) - the other areas are all outside the south. These include West Dunbartonshire (GBP4,614), Glasgow (GBP4,885), Midlothian (GBP4,986) and Manchester (GBP4,992). [See Table 3]

The majority of areas with a savings balance below the UK average of GBP7,788 are outside southern England.

Savings Balances and Gender

Nationally women (GBP7,981) just edge men (GBP7,657) with slightly higher savings balances - a difference of just four per cent. Regionally the biggest differential is in the South East (6%) and East Anglia (5%) where women have a higher average savings balance than men. The only regions where men outsave women are Scotland (14%) and the North (1%).

There are, however, some marked differences within local areas. For example, in Waverley in Surrey average female balances are 28% higher than those held by men (GBP12,385 compared to GBP9,709). Waverley is followed by Adur, where the difference is 24% (GBP8,271 compared to GBP6,655) and Oadby and Wigston 22% (GBP8,941 compared to GBP7,336).

In contrast, there are several areas where men have substantially higher average balances than women, such as in East Lothian where the difference is 49% (GBP10,433 compared to GBP6,981); followed by Inverclyde (38%, GBP10,630 compared to GBP7,678) and Omagh (32%, GBP9,454 compared to GBP7,147).

Savings balances and average earnings

Female savers in the UK have an average savings balance equivalent to 40% of their gross annual earnings - 17% more than male savers who have an average balance of 23% of their earnings.

Women save a bigger proportion of their earnings than men across all regions in the UK. The research shows that women have a savings balance equivalent to almost half (48%) of their earnings in the South West; closely followed by Yorkshire and the Humber, East Midlands and East Anglia (all 47%). Savings by men are highest in proportion to earnings in Northern Ireland (31%). The lowest levels of savings relative to earnings are in London for both women and men (31% and 18% respectively). [See Table 4]

Savers in Hambleton in North Yorkshire have the biggest savings balances relative to earnings. The average savings balance of GBP11,316 is equivalent to 58% of average earnings in the area. Savers in five other local authority districts (LADs) have average balances equivalent to at least half their earnings; Eden in Cumbria (54%), Christchurch in Dorset (52%), North Norfolk (51%), Waveney in Suffolk (50%) and West Devon (50%). These are all popular retirement areas, which serves to boost the average level of savings amongst inhabitants.

In contrast, savers in Islington have an average balance of GBP7,133; equivalent to just 12% of average local earnings - the lowest in the survey. Nine of the ten LADs with the smallest levels of savings to earnings are in London; the exception is North Lanarkshire in Scotland (16%).

There are two factors that are likely to be boosting women's savings: firstly, tax benefits; higher tax rate paying husbands transferring savings into their wives' names to reduce the amount they pay in tax and secondly, elderly single females who are left with the savings when their husbands die.

Martin Ellis, economist at Halifax, comments:
"Two key themes emerge from the Halifax savings survey. Firstly, there is a wide variation in regional balances and secondly women appear to be saving more than men. Whilst women typically have slightly higher savings balances then men, the difference as a proportion of earnings is quite substantial. Female savers seem to be managing to devote more of their earnings to savings.

"Saving habits can differ greatly, with many savers putting away spare cash for an event such as a holiday or wedding, however, it is still important to plan for the long-term future, such as saving for retirement."

Halifax Savers Prize Draw
The first Halifax Savers Prize Draw will be drawn in the coming week and will give Halifax savers the chance to win a range of cash prizes ranging from GBP100,000 to GBP100. This innovative scheme will see Halifax savers, with balances of GBP5,000 or more, gain the opportunity to win a cash prize in a series of monthly draws.

Halifax Savers Prize Draw details:
- Prizes each month: three x GBP100,000, 100 x GBP1,000 and 1,000 x GBP100
- The first monthly prize draw will be held in early December 2011
- Monthly draws take place in the first three working days of each month
- All prizes awarded are in addition to any interest paid

Entry Criteria
- Customers must hold an aggregate balance of GBP5,000 in one or more qualifying savings accounts2
- Customers must register to be entered into the draw
- Customers must be 18 or over and be resident in England, Scotland or Wales
- One entry per customer

Registration is quick and easy. Customers can register by filling in a form at www.halifax.co.uk/saversprizedraw or calling the dedicated phone line on 0844 571 50 76.

1 Southern England is made up of Greater London, South East, South West and East Anglia. The North includes the remaining English regions, as well as Wales, Scotland and Northern Ireland.
2 Halifax customers for October 2011.
3 Halifax savings accounts not eligible for the draw include accounts held for, or on behalf of children, including child-specific accounts such as Save4it, Children's Regular Saver and Young Saver, the Halifax Christmas Saver and any accounts held for non-personal reasons such as a club, charity or business account. Bank of Scotland savings accounts are also eligible.
The data used in this research refers to balances at the end of October 2011and relates to the balances per customer (i.e. it is an aggregate of all accounts held by the individual with Halifax).

Average earnings data is based on the ONS Annual Survey of Hours and Earnings figures for April 2010.

"This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance."

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