September 14th, 2026 | Andrew Hagger | News

The way businesses use offices has changed, but workspace still carries a significant financial weight. You may have fewer people attending every day, while growing teams still need somewhere to meet and host clients. Choosing an office ultimately comes down to numbers. An inexpensive setup can create hidden costs when employees lose productive time or struggle to work effectively. Equally, an impressive office can drain cash without delivering much value. The challenge lies in whether a workspace supports the way your business operates.

Are Productivity Challenges Starting to Affect Growth?

Employees might struggle to hold confidential calls at home, while teams may spend unnecessary time organising places to meet. Measure the problem before assuming an office will solve it. Review missed deadlines and meeting-room spending over several months. If eight employees each lose two hours a week because of unsuitable working conditions or coordination difficulties, that represents 16 hours of potentially productive time. An office that gives those employees suitable places to collaborate could recover some of that capacity.

Understanding the True Cost of Staying Put

Your current arrangement might involve coworking passes, hired meeting rooms, travel expenses or storage fees. Managers may also spend valuable time coordinating where people will work. Calculate these expenses across at least six months, including the cost of staff time where you can reasonably estimate it. If you’re a countrywide business, location choice will be a key factor in judging the two options. Picking an office space in London may not be the best choice if costs are a consideration. For example, choosing to find an office space in Leeds or a city with good transport links can then become a comparison between one predictable expense and the collection of smaller costs you already absorb.

Consider location as part of that calculation. A cheaper office that adds significant travel time for employees or clients can create costs elsewhere. Paying slightly more for convenient premises may deliver better overall value.

How Workspace Can Support Recruitment and Retention

Candidates increasingly consider where and how they will work when evaluating jobs. If your role requires office attendance, poor transport links can make recruitment harder.

Employee turnover also carries measurable costs. When somebody leaves, you may spend management time interviewing replacements and lose productivity while a new employee learns the job. Workspace will not determine every employee’s decision, but persistent frustration can add another reason to leave.

Ask your employees what they value before spending heavily on facilities. They may prefer convenient transport, quiet working areas and reliable meeting rooms to expensive design features.

Evaluating Return on Investment Beyond Rent

Start with the complete annual cost rather than headline rent. Include service charges, utilities, insurance, furniture and technology where relevant. Next, establish figures you can compare after moving. Track external meeting-room spending, recruitment costs, staff turnover and other expenses that your workspace could realistically influence. Review the figures after 6 and 12 months rather than relying on whether employees simply like the office.

Test several scenarios before committing, including lower office attendance and slower growth. This shows whether the investment remains affordable when circumstances differ from your forecast.

When the Numbers and the Workplace Align

A workspace makes financial sense when it solves problems worth paying to solve. The important question is not whether your business has reached a particular size or whether competitors have offices. Instead, consider what your premises allow people to do that they cannot do efficiently today. As your business develops, those needs will change, so the right decision should leave room for adaptation. When you treat workspace as an operating investment, you can judge it against the same standard as any other expense: whether the value it creates justifies the money you commit.

September 14th, 2026 | Andrew Hagger | News

Hybrid working hasn’t simply changed where people work. It’s changed what businesses need to protect. When most employees accessed company systems from the same office, security could be built largely around that location. Today, staff might connect from home, a client site, a hotel or another office, often using cloud applications across several devices.

For businesses, that doesn’t necessarily mean security has simply become more expensive. Instead, the costs have shifted towards protecting a much more distributed working environment.

Why Office-Based Security Models No Longer Fit Hybrid Teams

Traditional approaches were designed around a relatively clear boundary. Employees came into the office, connected to the corporate network and accessed systems from managed devices.

That boundary is now much harder to define. More than a quarter of working adults in Great Britain, 28%, were hybrid working between January and March 2025, according to the Office for National Statistics. Employees therefore need secure access to business systems wherever they happen to be. Security now has to follow the user rather than simply surrounding the office.

The Hidden Costs of Supporting a Distributed Workforce

That shift creates costs that aren’t always obvious when a hybrid policy is introduced. Businesses may need additional remote-access capacity, device management software, endpoint protection, multi-factor authentication and greater IT support. Then there’s the human element. More locations and devices mean employees need clear guidance on phishing, lost equipment, passwords and reporting suspicious activity.

Yet the government’s latest Cyber Security Breaches Survey found that only 19% of UK businesses had provided cyber security training or awareness activities during the previous year. The cost of hybrid security, therefore, isn’t just software. It includes people, support, monitoring and ongoing management.

How Businesses Are Reducing Complexity and Controlling Costs

One problem with responding to every new risk individually is that organisations can quickly accumulate a collection of separate security and networking tools. That creates its own expense. More platforms mean more licences, administration, monitoring and specialist knowledge.

Integrated approaches can help reduce that complexity. For example, SASE security solutions that bring networking and security together can provide organisations with a more unified way to secure access across offices, remote users, devices and cloud applications.

Balancing Protection, Flexibility and Budget

Throwing more money at cybersecurity isn’t automatically the smartest approach. Businesses need to understand where their genuine risks sit. Which systems contain sensitive information? Which employees work remotely? What devices do they use? Where would an interruption cause the most damage?

A risk-based approach can help businesses concentrate spending where it matters most. That might involve stronger authentication, employee training, device controls and better network visibility rather than simply buying another security product.

Security Spending Has Entered a New Phase

Hybrid working hasn’t removed the need for security investment. It has changed where that investment needs to go. Businesses are now protecting people and data across a much wider digital environment, making scalability and simplicity increasingly valuable.

The organisations that manage those costs most effectively will be those that understand how their people actually work, consolidate unnecessary complexity and invest in protection that can adapt alongside the business. Because in a hybrid world, good security isn’t about defending one location. It’s about maintaining secure access wherever work happens.

September 14th, 2026 | Andrew Hagger | News

If you want to live a life that’s rich in meaning and personal fulfilment, then you need a hobby – or perhaps even several of them. You might find that your journey as a creative person confers benefits that you feel in other parts of your life. For example, a few weeks of training as a portrait artist might fundamentally shift the way that you observe the world around you.

But before taking up a new hobby, it’s worth bearing in mind the costs that you’re assuming – especially if those costs are likely to escalate as your needs become more sophisticated.

What Will the Hobby Really Cost Beyond the Initial Purchase?

In many cases, hobbies can be tremendously costly. This is particularly so in the world of collectables, where there’s no limit to the amount you can spend.

Hobbies often require equipment and supplies. If you take up the electric guitar, for example, you’ll not only need to think about the instrument itself but also the supplies that go with it. Strings, cables, pedals, and ongoing maintenance will all incur a cost.

The easiest way to manage these costs is to budget for them. Set a hard limit for your spending on your hobby each month. Don’t be tempted to simply spend money on supplies that you don’t need.

Does the Hobby Fit Within Your Current Financial Priorities?

In some cases, you might find that your hobby comes into conflict with your other financial ambitions. After all, every pound that you commit to buying books or equipment is a pound that can’t go into your pension fund or cash ISA.

What matters here is that you have a budget that covers both of these things. Think about how much utility you’re getting from every purchase you make. If you’re painting miniatures, for example, you might stick to the basic colours and methods until you have the skills necessary to wield the more expensive, sophisticated ones.

Are There Additional Running or Protection Costs to Consider?

In many cases, getting into a hobby might involve a major investment. It’s vital that you consider not only up-front costs but ongoing ones. These might involve storage for equipment and supplies, as well as travel. If you like wakeboarding, you’ll need to occasionally travel to places with enough water.

Insurance is something that many advanced hobbyists need to consider. And in some cases, beginners might think about it, too. Motorhome travel, for example, is best done with the help of specialised motorhome insurance.

Can You Try Before Fully Committing?

If there’s a major expense involved in your chosen hobby, then it’s worth establishing that you really want to get involved with it. Borrow the supplies you need from a friend, or rent them. If you’ve never skied before, then it’s a good idea to rent your equipment, rather than buying it outright. That way, you’ll not only be able to decide whether the hobby is right for you, but you’ll also be able to determine what features you’re looking for when you actually come to invest.

What Value Will You Actually Get From It?

Certain hobbies will naturally make a better fit for your personality and lifestyle than others. In some cases, you might pick up skills that you can apply elsewhere in life. Or, you might open up new social opportunities.

The best approach is often to try a range of hobbies so that you can see which makes the best fit for your goals and lifestyle.

Conclusion

A new hobby can be a very rewarding thing. But it can also, in many cases, be a burden. Make sure that your finances can cope before you get too involved in your chosen pursuit.

September 14th, 2026 | Andrew Hagger | News

Financial confidence isn’t something that suddenly appears with your first full-time salary. Like most useful life skills, it develops gradually through experience. That’s particularly important when everyday costs remain a concern for UK households. Learning how to budget, compare prices and plan ahead while you’re young can make the transition into adult financial responsibilities feel much less daunting.

You don’t need to understand mortgages or pensions at 17. Simply learning to think before spending is a pretty good place to start.

Financial Confidence Starts with Everyday Decisions

Money management is often learned through small, ordinary choices. A teenager deciding whether they can afford a new phone contract, streaming subscription or weekend away is already practising skills they’ll need later in life. They’re working out what something costs, whether the commitment fits their budget and what they might have to give up in exchange.

One of the best ways for teenagers to learn about money is to give them responsibility for managing some of it themselves. A regular budget gives young people opportunities to discover that money is finite and needs to be planned. Those small lessons can gradually become habits.

Learning to Compare Costs Before Committing

Financial confidence also means becoming comfortable with shopping around. Instead of buying the first option available, young people can learn to compare the full cost, understand what’s included and ask whether they’re genuinely getting value for money. Learning to drive provides an excellent real-world example. There are driving lesson packages to compare, possible private practice costs and eventually the expense of running a vehicle.

Insurance deserves research too. Car insurance can be particularly expensive for young drivers, so be sure to shop around while considering the level of cover rather than choosing on price alone. Someone practising privately might compare options such as learner driver insurance for practising in their own or a family car as part of understanding what learning to drive will actually cost.

Understanding the True Cost of Independence

Major milestones rarely come with only one expense. A first car isn’t simply the purchase price. There may also be fuel, insurance, servicing, MOT costs, repairs and vehicle tax to consider. Similarly, moving away from home involves far more than monthly rent once food, utilities, transport and other everyday costs enter the equation. Planning for the complete cost helps avoid that unpleasant moment when something affordable on paper turns out to be considerably more expensive in reality.

There are legal responsibilities too. Learners practising in a car they own must have insurance covering them as a learner driver, and those practising in somebody else’s car must also have appropriate cover in place.

Confidence That Lasts

Nobody makes perfect financial decisions all the time, and that isn’t really the goal. Financial confidence comes from knowing how to assess your options, understand the wider costs and make a decision that works for your circumstances. Learning those habits early gives young people a chance to practise while the stakes are relatively small. Over time, the same skills can help with much bigger decisions, from buying a car to renting a home or planning for the future.

The amounts may change, but the basic habit remains the same: understand the cost, weigh up the options and plan before you commit.

September 11th, 2026 | Andrew Hagger | News

Brits report saving an estimated £4.43 billion by redeeming rewards over the past year, according to new research from American Express, showing the role reward programmes play in helping households make everyday spending go further.

With millions of Cardmembers worldwide able to earn and redeem rewards through its Cards, American Express has commissioned the first American Express Rewards Report 2026 to explore how the UK’s rewards landscape is evolving, from how consumers earn and redeem rewards to the role they now play in everyday financial decision-making.

Based on a survey of 4,000 UK adults, the report reveals that nine in 10 (90%) consumers are signed up to at least one reward programme, with the average Brit surveyed belonging to 12 different schemes spanning supermarkets and high street retailers, food and drink, local traders and independent businesses, travel, credit cards and third-party cashback sites.

Caroline Bouvet, Vice President of Products and Partnerships at American Express, said: “Our new American Express Rewards Report shows that rewards have become much more than an occasional perk. Consumers are looking to get more value from the money they’re already spending, whether that’s helping to reduce the cost of the weekly shop, saving towards a holiday or unlocking experiences they might not otherwise have enjoyed.

“We know our Cardmembers want rewards to be flexible, accessible and relevant to the way they live and spend and this is why we see such strong engagement with our reward products.”

Rewards become an everyday money-saving tool
Reward members are increasingly using rewards to manage their household finances. Four in 10 (40%) of those surveyed use rewards to lower the cost of everyday spending, while 37% use them to get better value from their planned purchases. One in five (21%) think of their rewards as an extra savings pot or rainy-day fund that they can draw on when needed.

The findings suggest that rewards are factored into consumers’ everyday spending habits. Loyalty programme members surveyed estimate they earn rewards on more than a third (35%) of their spending, with nearly half (46%) saying that earning and redeeming rewards is embedded into their daily lives.

Brits surveyed were most likely to belong to programmes provided by supermarkets (87%) and high street retailers (66%), followed by food and drink chains (50%) and reward or cashback credit cards (44%).

Loyalty programme rewards go beyond everyday savings
Across the full range of loyalty programmes included in the research, members surveyed who redeem rewards estimate they saved an average of £132.30 over the past 12 months. The top 5% of those who redeem rewards estimate that they saved £797.50 on average.

However, this figure does not include the highly valued wider perks and benefits received by 59% of loyalty programme members surveyed, such as travel upgrades or access to exclusive events, lounges or members-only areas.

More than a third (35%) of members surveyed agree that reward programmes are more valuable when they offer additional benefits or perks, with 32% saying that these additional perks and benefits allow them to unlock experiences they could not usually have. A quarter (26%) even say their perks and benefits give them a chance to have ‘once in a lifetime experiences’.

As well as the financial value, reward programmes help consumers feel more positive about how they manage their money. Three quarters (74%) of programme members surveyed say they are satisfied they are making the most of their reward programmes.

September 11th, 2026 | Andrew Hagger | News

Twenty7tec data shows remortgaging continuing to drive activity, while first-time buyer, purchase and buy-to-let searches remain softer.

Residential remortgage searches were 11% higher year on year in August despite an overall slowdown in mortgage search activity during the summer, according to the latest Twenty7tec Mortgage Market Snapshot.

A total of 1,556,758 mortgage searches were completed during August, down 13% compared with July but 1% higher year on year.

Residential searches followed a similar pattern, falling 13% month on month while remaining 3% higher than the same period last year.

The strongest annual growth came from residential remortgaging. Twenty7tec recorded 616,150 searches during August, 12% fewer than in July but 11% higher year on year.

The figures add to evidence that remortgaging is becoming an increasingly important part of current mortgage market activity.

Mortgage lending statistics published by the FCA and Bank of England this week show that remortgages accounted for 31.2% of gross advances to owner-occupiers in Q2, up 3.1 percentage points on the previous quarter and the highest share since Q1 2024.

Nakita Moss, Head of Lender at Twenty7tec, said:

“August was undoubtedly quieter than July, but the monthly fall isn’t the whole story. Overall mortgage searches remained slightly ahead year on year, and residential activity was 3% higher.

“Remortgaging is particularly interesting. Our searches were 11% higher year on year, and the latest lending figures also show the share of advances going towards remortgaging has increased.

“For advisers, this means there is still a significant population of existing borrowers needing to understand what their next mortgage looks like. In a market where rates and products can change quickly, those conversations can be just as important as activity coming through the purchase market.”

However, the wider lending data suggests lenders are continuing to find ways to support borrowers with smaller deposits.

Joint Borrower Sole Proprietor remained the most searched-for criteria area on Twenty7tec during August, followed by visa applicants and non-UK foreign nationals. Searches relating to satisfied defaults and maximum age at the end of the mortgage term also featured among the most common criteria enquiries

September 9th, 2026 | Andrew Hagger | News

Sending a message to the wrong person, having your bank card declined and checking your bank balance are among the everyday situations Brits are most likely to dread, according to new research.

A new study commissioned by Santander UK found that 46% of Brits regularly experience feelings of dread or unease about standard everyday tasks. Among the situations people say make them feel most uneasy are, sending a message to the wrong person (44%), having a card declined (30%) and accidentally liking somebody’s old social media post (24%).

Checking a bank balance ranked fourth overall (23%), with some Brits claiming they would go as far as opting to hold a snake (10%), go on a blind date (9%), give up their phone for a week (9%), text an ex (8%) and go skydiving (8%) instead. Even higher earners³ feel the same, with 1 in 4 (23%) admitting they feel uneasy when opening up their banking app to check their balance.

Around two thirds of Brits (67%) say they tend to dodge important financial admin tasks due to the feeling of dread linked to it, whether that’s avoiding making a budget (42%), not opening letters or emails relating to their finances (40%) and even not paying bills (37%).

The main reasons given for putting off these tasks are that they feel too overwhelming (39%), they don’t know where to start (26%) or they lack confidence to deal with them (19%), with half (48%) finding it difficult to save regularly.

The research comes on the back of Santander launching its Regular Saver account⁴ offering an 8% interest rate to encourage and reward savers who start a regular monthly saving habit.

The findings reveal a clear gap between financial confidence and action. Despite most respondents saying they have a good grasp of their day-to-day spending (83%), half (49%) still admit to actively avoiding their bank account in certain situations, like just before payday (21%), after a holiday (24%) or after paying household bills (24%).

Millennials in particular feel most overwhelmed (56%) when checking their bank balance when compared to Gen Z (50%) and Gen X (42%), despite being more likely (82%) to claim they are aware of their everyday spending.

Gail Russell, Head of Everyday Banking at Santander UK, said: “Life can feel overwhelming, particularly when it comes to our money. From checking your bank balance after a holiday to starting to save, day-to-day and financial admin can be easy to put off. The important thing is to start somewhere, and even one small action can help people feel more in control.

“Our new Regular Saver pays 8% AER interest, rewarding customers for putting a little aside each month, helping make saving feel that little more achievable and turning good intentions into a regular habit.”

As well as benefitting from 8% interest with Santander’s Regular Saver account, customers who switch to Santander from an external provider can receive £240 for switching⁵.

The top 10 everyday moments Brits dread most

• Sending a message to the wrong person (44%)
• Having your card declined (30%)
• Accidentally liking someone’s old social media post (24%)
• Checking your bank balance (23%)
• Forgetting somebody’s name moments after being introduced (23%)
• Being left on read after sending a message (20%)
• Seeing an unknown number calling your phone (19%)
• Presenting to a group (17%)
• Bumping into your boss outside work (11%)
• Realising you’ve ‘replied all’ to an email (11%)

September 9th, 2026 | Andrew Hagger | News

Starting a side hustle at the very start of your career can feel very exciting, especially when it starts to turn into an idea that people will pay for. You may have a great product, service or creative skill, but getting noticed online is a different challenge. When you’re looking into a small business, digital marketing can become a whole other job if you’re handling every post, keyword, campaign, and analytics report yourself. With this in mind, here are some surefire signs that you may need a helping hand with your digital marketing.

You Have No Strategy

If you are posting whenever you remember, changing your website copy on a whim, or trying random marketing ideas because someone online said they worked, you may need some outside help. A plan can save you from spending hours on tasks that are not bringing visitors or customers. Working with an SEO agency can also give you direction when you’re unsure which parts of your online presence deserve attention first. You can then put your energy back into running your side hustle and doing what you’re truly good at.

Your Website is Not Bringing Results

A website can look good, but it still might not be attracting the right people. If your traffic is low, visitors may leave quickly, or hardly anyone will get in touch after finding you, there could be problems behind the scenes. Your pages might not be targeting useful search terms, your content may need improving, or your calls to action could be easy to miss. Getting another pair of eyes on your site can reveal opportunities you might not spot when you have been looking at the same pages for months.

Marketing Keeps Getting Pushed Aside

You might want to spend more time on marketing, but customer messages, orders, admin, product development, and your main job are usually the go-to priority. Before long, many weeks can go by without a new blog posts, social update, email or campaign. That doesn’t necessarily mean you are doing anything wrong. It simply means there are only so many hours in a day and you can’t do everything. Bringing in specialist support can take recurring marketing jobs off your plate whilst giving your business a better chance of staying visible.

You Can’t Tell What’s Working

Understanding how your marketing actually works is so important, because it can actually produce a lot of useful numbers. You may see website visits increasing without knowing whether those visitors are actually interested in buying. You might be spending money on advertising without being sure which campaign deserves the budget. If reports make you a little confused, expert guidance can help you to connect the figures with your business goals.

All in all, knowing when to ask for help isn’t a sign that your side hustle is failing. In fact, it can be a sensible way to protect your time and make better use of the resources you already have. If digital marketing is becoming another job rather than helping your business to grow, bringing in the right support at the right time can make running your side hustle much more manageable.

September 8th, 2026 | Andrew Hagger | News

The UK property market often moves faster than traditional financing allows. For property investors, acting quickly can mean the difference between securing a profitable deal and missing out. Bridging loans are a specialist financial tool designed for these exact situations, providing fast, short-term capital for property transactions that can’t wait for conventional mortgage approvals.

Used correctly, this type of finance can open up significant opportunities. However, it needs careful planning and a clear understanding of both its benefits and its risks.

What is a Bridging Loan

A bridging loan is a short-term finance option that covers a temporary funding gap. Think of it as a financial bridge that gets you from one point to another, typically from buying a property to securing long-term funding or completing a sale. Unlike a standard mortgage, which is for long-term ownership, a bridging loan is meant to be repaid quickly, usually within 12 to 24 months.

These loans are secured against property and can be arranged much faster than traditional mortgages. 

They come in two main types:

• A closed bridge is used when you have a guaranteed exit strategy with a set date, such as an exchanged contract for the sale of another property.
• An open bridge is more flexible. It’s used when the exit strategy is planned but not yet certain, like renovating a property to sell on the open market.

When Do They Make Sense

Bridging finance isn’t an everyday tool. It’s a strategic solution for specific situations where speed is crucial. For property investors, several common scenarios make a bridging loan the most logical choice.

One of its most frequent uses is buying property at auction. Auction houses demand a deposit on the day and completion within a very short timeframe, often just 28 days. This simply isn’t enough time to secure a conventional mortgage. A bridging loan can be arranged quickly to meet this deadline, letting the investor secure the property and then arrange long-term finance later.

Another key use is to break a property chain. If you’ve found your next investment property but are still waiting for your current one to sell, a bridging loan can provide the funds to buy the new property immediately. For investors who need to act fast, questions about specific lenders, such as does NatWest offer bridging finance become critical for evaluating the speed and accessibility of available funding options. This prevents a promising deal from collapsing due to delays elsewhere in the chain.

Key Benefits for Investors

The main advantage of a bridging loan for a property investor is speed. Application and approval processes are much faster than those of high street banks, with funds often available within days instead of months. This agility lets investors compete with cash buyers and secure deals that would otherwise be impossible.

Flexibility is another major benefit. Bridging lenders are often willing to consider properties that traditional mortgage providers would not. This includes buildings needing significant renovation, those without a functioning kitchen or bathroom, or properties with unusual lease structures. 

The loan is based on the value of the asset, offering a more practical approach to lending. This allows investors to buy, refurbish, and then either sell for a profit or refinance onto a standard mortgage once the property is in a lettable or saleable condition.

Navigating Lender Options

The market for bridging finance is diverse. It includes specialist lenders, private banks, and some challenger banks. Unlike the mainstream mortgage market, many of the best deals and most flexible products aren’t available directly to the public. Instead, you access them through specialist finance brokers who have established relationships with these lenders.

A broker can assess your specific circumstances, the property type, your financial situation, and your exit strategy. They then match you with the most suitable lender. They understand the different criteria, interest rates, and fees each lender applies, saving you time and potentially a lot of money. When comparing options, it’s important to look beyond the headline interest rate and consider all associated costs. These include arrangement fees, valuation fees, and legal costs.

Potential Risks to Consider

While bridging loans offer powerful advantages, they do come with risks. The most significant factor to consider is the cost. Interest rates are considerably higher than those for standard mortgages, and fees can be substantial. The interest is often rolled up and paid along with the capital sum when the loan is repaid, which can quickly increase the total amount owed.

The greatest risk lies in the exit strategy. If your plan to repay the loan fails, for example, if a property sale falls through, renovation work takes longer and costs more than expected, or you can’t secure a mortgage to replace the bridging loan, you could face serious consequences. Lenders may charge hefty penalty fees for late repayment. In a worst-case scenario, you risk losing the property. A clear and realistic exit plan isn’t just advisable; it’s essential to avoid these potential financial pitfalls.

Bridging finance is a valuable resource for the savvy property investor who needs to move quickly. When used with a solid plan and a clear exit strategy, it can provide the competitive edge needed to succeed in a fast-moving market.

September 8th, 2026 | Andrew Hagger | News

Cost of living pressures mean many households would struggle to cope with a sudden bill: recent research from the Office for National Statistics found that one in four (25%) adults would not be able to afford an unexpected but necessary expense of £850.

New research from LHV Bank suggests that even diligent savers may be more exposed than they think. The majority (57%) of savers with emergency money set aside could only cover three months of essential costs or less, despite almost three in five (59%) saving a dedicated emergency pot, meaning many people who believe they’re prepared could still run out of money within weeks of losing their income or facing a major repair bill.

Based on average UK household spending of £676.60 a week, LHV Bank calculates that a fully funded three-month pot would need to be around £8,800, highlighting just how far many people’s current safety net falls short.

Across the UK there were also variations: the survey of 2,000+ savers, carried out on behalf of the digital bank by Censuswide, found that almost two thirds (64%) of savers in London have money saved to cover an emergency, followed by 63% of savers in Nottingham and Bristol.

At the other end of the spectrum, savers in Newcastle and Plymouth are more exposed should an unexpected bill land, with only 49% and 48% respectively having dedicated emergency savings.

Three steps to becoming an Active Saver

To provide a decent, lasting emergency pot, savers need to actively ensure that their savings are working hard by following these three steps:

1. Check your rate. Find out what your savings are earning today. Many people are shocked to discover it’s 1% or less.
2. Move your money. If your rate doesn’t beat inflation, switch to one that does.
3. Make it a habit. Set a reminder to review your rate every few months and watch out for short-term bonus rates that quietly slip away. Check your balance AND your rate.

Alex Beavis, Interim Director of Banking, LHV Bank, said: 

“Emergency savings are an essential part of financial planning. It’s all too easy for an unexpected expense to crop up, whether that’s car repairs, needing a new boiler or a job change which puts our household budgets under pressure. Having a savings safety net to turn to on those occasions is crucial, and it’s encouraging that many across the UK have some sort of emergency fund in place.

“But it’s not enough to simply set up a pot and believe your work is done. Our survey shows that the majority of savers with an emergency fund would struggle to cover three months or less of necessary expenses – and these are necessary costs, not even ‘nice to haves’, which really puts into perspective just how exposed people could be if the worst happened.

“Just as important as getting into the savings habit is making sure that you are getting a competitive return on the money you set aside each month. Too often savers are being hamstrung by providers offering substandard rates, taking advantage of savers’ expectation of a fair deal. Our advice to anyone without a safety net is simple: start now, even with a small, regular amount, and make sure that money is working as hard as possible by choosing an account that pays a consistently competitive rate. Being an Active Saver, and ensuring you get rewarded consistently for the money saved, means you’ll be far better placed to deal with those unexpected bills when they emerge, no matter how dramatic they may be.”