LONDON, July 22 Reuters A jump in British household saving since the COVID19 pandemic appears here to stay and cannot be fully explained by higher interest rates or unemployment fears, according to the country39;s statistics agency.

Analysis published on Monday from the Office for National Statistics showed Britain39;s households saved 11.1 of their income in the first three months of this year, up from 5.8 in the final quarter of 2019. This was the highest rate since 2010, excluding the start of the pandemic when it spiked to 27.4.

Britain39;s persistent increase in the household savings rate contrasts with the United States and, to a lesser extent, the euro zone.

The U.S. personal savings rate is just under 4, around 3 percentage points lower than in 2019. The euro zone39;s savings rate of 14.7 is above Britain39;s, but has increased by less since 2019.

The savings rate represents the percentage of household income after taxes and benefits which is not spent. Employers39; pension contributions and changes in the value of retirement savings also count as income.

Excess savings built up by British households since the pandemic are now in the range of 143 billion to 338 billion pounds 185 billion to 437 billion, the ONS said.

UK households have been reluctant to spend these accumulated savings, unlike in the U.S. where it has been an important factor in supporting household consumption and economic growth, it added.

TEMPORARY OR PERMANENT?

Much of this saving was…