By Vicky Shaw

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A savings pot of £2,000 can be a “turning point” for households, significantly reducing the risk of falling behind on bills, a study suggests.

A household with this buffer could have 60% lower odds of falling behind with bills and have a lower risk of problem debt than an equivalent household with less than £200 put away or no savings at all, according to the research from the University of Bristol’s Personal Finance Research Centre.

Having one month’s income put by potentially reduces the odds of falling behind with bills by nearly 75%, the research suggests.

The research was commissioned by the Building Societies Association (BSA) for UK Savings Week (September 22 to 28 2025).

The study was based on analysis of data in the Understanding Society survey, enabling researchers to track the finances of about 7,000 people over a 10-year period.

While the report highlighted £2,000 as an important protective threshold, it also suggested that this target should not be seen as a minimum requirement.

Researchers found that even saving £200-plus could potentially lower the chances of financial problems.

It also found that having a basic savings account in the first place can be a “gateway” to people opening other financial products, such as Isas and investments.

Households with a mix of savings and investment products were five times more likely to say they were living comfortably than those with none, the research indicated.

Setting a savings goal that is realistic and achievable for someone’s personal circumstances, and saving regularly, can be crucial to success, the research indicated.

Andrew Gall, head of savings and economics at the BSA said: “We appreciate that for some families £2,000 may feel out of reach right now.

“But the research has demonstrated that even small, regular savings, such as £10 a month, will build resilience over time and improve people’s wellbeing.

“Just as important, the findings show how a simple savings account is often the first step to achieving longer-term financial goals.

“People with good savings habits are far more likely to go on to have other savings and investments, which in turn can lead to positive outcomes such as becoming a homeowner.

“And this report makes clear that there’s more we can do. From payroll savings to better financial education, there are practical steps that can help the nation have better savings habits.

“Everybody’s savings journey has to start somewhere.”

Sara Davies, associate professor at the University of Bristol and part of the research team said: “This research reaffirms the protective effect of holding a financial buffer, giving households a bit more room for manoeuvre should they face an unexpected expense or shock to their income.”