Stark warning millions of Brits face £5,000 shortfall this winter

More than one in 10 households have no emergency funds, BOXT says

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UK families are facing a worrying £5,000 shortfall in emergency funds as we head into the winter months. Financial experts advise having an emergency fund equivalent to at least three months of your income, which is just over £7,000 based on the average salary.

However, research from BOXT reveals that the average family has only £1,983 saved for unexpected repairs or costs, which is more than £5,000 less than the recommended amount. A third of adults have less than £200 in emergency funds, while 13 percent of those surveyed had no savings at all, equating to 5.5 million people nationwide.

Ryan Gill, lead engineer at boiler installation group BOXT, cautioned: "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 homeowners to service their boilers annually to identify any potential problems and ensure they are functioning properly. Mr Gill also urged individuals to build up their emergency savings with whatever they can afford to set aside.

He stated: "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 study highlighted regional disparities, with households in the East Midlands having the largest emergency funds, averaging £2,398.

In contrast, those in the North East had the smallest safety nets, with an average of just £1,474 saved. Additionally, summer spending has significantly depleted many people's emergency savings, with an average reduction of £360 during this time.

Londoners were found to have dipped into their emergency funds the most, reducing the size of their rainy day pots by £444.