Families are weathering storm and saving more

Families have seen their finances improve over the past year, which has helped them to boost their savings despite the recession, according to a report.

They take home £2,150 a month on average, after taxes and before paying bills, an above-inflation 4 per cent rise on 12 months ago, Aviva’s Family Finances Report said.

This has helped families to increase the amount they put away in savings each month to £45, a record high since the report began in January 2011 and 41 per cent more than a year ago, taking typical savings pots to £1,228, a 6 per cent year-on-year increase.

Families’ take-home pay has grown at a higher rate than for people across the UK generally, as family households are more likely to include people who are more financially established.

Families have been able to take advantage of a recent slowing in unemployment to bolster their incomes, with nearly three-quarters having a full-time “breadwinner” and more than a third having a spouse who earns a secondary income.

Richard Kelsall, head of savings for Aviva, said: “Many UK families have experienced tough times in recent years, so it’s reassuring to see that people are getting to grips with their finances to weather the storm.

“Incomes have risen and debts are falling, which suggests that families are working hard to get on an even keel.”