CashNews.co
Families in the UK are being warned of an alarming £5,000 shortfall in emergency funds going into the winter months.
Finance experts recommend having an emergency pot worth the same as at least three months of take-home pay, which is just over £7,000 based on the average salary.
But research from BOXT has found the average family has just £1,983 saved up for any sudden repairs or costs, which is more than £5,000 less than the ideal figure.
A third of adults have less than £200 in emergency funds while 13 percent of those surveyed had none at all, the same as 5.5 million people across the population.
Ryan Gill, lead engineer at boiler installation group BOXT, warned: “Winter is a time when household emergencies can strike unexpectedly – whether it’s a boiler breakdown, burst pipes, or heating issues due to colder temperatures.
“The cost of an urgent repair is often higher than regular maintenance, and without sufficient rainy day funds to cover unforeseen setbacks, families can be faced with financial difficulty as well as the stress of potentially having no heating or hot water.”
He encouraged home owners to get their boiler serviced every year to spot any potential issues and make sure it’s working well.
Mr Gill also urged people to build up their emergency savings with whatever they can afford to put aside.
He said: “For those able to save, it’s a good idea to start small – setting aside even a modest amount each month can quickly grow into a safety net.
“This does sometimes mean cutting back on non-essential spending, but it will pay off in the long run. You can also explore services like BOXT Life – an all-in-one boiler plan that includes annual servicing and unlimited repairs – to make sure you’re never caught short when it comes to your heating.”
The research showed some regional divides, with people in the East Midlands having the biggest emergency funds, at £2,398 per household on average.
Those in the North East had the lowest rainy day savings, with just £1,474 saved up.
Spending over the summer months has also eaten up a lot of people’s emergency funds, with savings shrinking £360 over this period.
London was the area that used up the most of their emergency funds, spending £444 of their savings.