Milton Keynes households among those who save the most money in the UK

They are among those who put the highest proportion of their available resources into savings, the data suggests.

But a financial support charity warned it has become increasingly difficult for many households across the country to save money during the cost-of-living crisis, and has called on the Government to offer more financial support.

New data from the Office for National Statistics shows on average, UK households put 8% of their available resources into savings in 2022.

It was down from 12% in 2021 and 17% in 2020, which were affected by the Covid-19 pandemic, but up from 6% in 2019 pre-pandemic.

Households' available resources include their disposable income and any pension entitlements they may benefit from.

The saving ratio of a household is the percentage of the total resources remaining after all spending has occurred.

A negative saving ratio indicates a household spent more money than it had available in that year, reducing their overall balance of savings.

Households in Berkshire, Buckinghamshire and Oxfordshire put an average of 17% of their available resources into savings in 2022 – down from 21% in 2021 but up from 5% in 2019 before the pandemic.

The data also shows great disparities in saving across the UK. Households in West Inner London saved an average of 37% of their available resources in 2022, while households in Cornwall and the Isles of Scilly had a saving ratio of negative 12%.

Grace Brownfield from the the Money Advice Trust, which runs National Debtline, said: "When people face hits to their income or need to cover a large, or unexpected essential cost, savings can be a vital lifeline.

"Being able to draw on savings means people are less likely to have to rely on expensive credit, which creates a higher risk of falling into debt."

However, she said putting money into savings has become increasingly difficult for many households affected by the cost-of-living crisis.

Dame Clare Moriarty, chief executive of Citizens Advice, has called for more financial support for those who need it the most, including people facing hardship and pressures linked to rising costs of rent and energy bills.