Consumer cash savings have fallen by almost a quarter (24.5%) in the year to August, as they continue to struggle with the cost of living crisis, Moneyhub has found.

The firm’s latest proprietary insight revealed that this coincides with an individual’s capacity to save without making any changes to their overall spending behaviour, which has fallen by 5.5% over the same period.

Despite this drop in spending, consumers’ non-discretionary spending needs, such as mortgage, rent, utilities and groceries, increased by 2.6% in the 12 months to August.

Moneyhub stated that this has likely prompted a drop in discretionary spending of 1.6% in the same period.

Chief executive officer at Moneyhub, Samantha Seaton, said: "While inflation has dropped and costs are beginning to ease back to a semblance of normality, it’s clear that the cost of living crisis lingers on for a vast swathe of the population.

"The fact that an individual’s capacity to save without making significant lifestyle changes continues to dwindle is worrying. Especially with many fixed-rate mortgages still to rise by quite some over the next year."

Seaton added: "Access to cash when it’s most needed provides consumers with a sense of financial security that supports their overall wellbeing."

---