Brits are changing their spending behaviour to ensure they are able to cover rising utility bills this autumn and winter, data from Barclaycard reveals.
Average spending on utility bills increased by 48% in September – higher than the growth seen in August (45.2%) and July (43.9%) – with 91% of consumers feeling concerned about the impact of rising household bills on their personal finances.
Insights are taken from Barclaycard’s monthly Consumer Spending Index, which combines the hundreds of millions of customer transactions recorded in September 2022 with consumer confidence data, reveals 65% of Brits are finding ways to save energy at home. Of these Brits, 67% are turning off lights when they leave the room and 54% are boiling only as much water as they need, rather than a full kettle.
Meanwhile, a third of Brits say they are assessing whether every individual purchase is necessary amid the cost-of-living squeeze, 67% are looking to reduce the cost of their weekly shop, 30% are only buying some items on a need-to-buy basis to save money and avoid waste.
Over half of Brits (53%) are planning to cut down on discretionary spending to be able to afford their energy bills this autumn and winter. Of these consumers, 60% are reducing the amount they eat out at restaurants and 47% are spending less on drinking in pubs, bars, and nightclubs.
To save money, 52% of Brits are planning to spend more evenings at home over the coming months.
In addition, with the festive period fast approaching, 39% of Brits have already started putting money aside for Christmas, to ensure they have enough saved for gifts and get-togethers.
Almost half of Brits (48%) are taking precautions due to concerns about products running out of stock earlier than usual, including stocking up on food with a long shelf-life and 6% have even pre-ordered their Christmas turkey already.
The data shows supermarket shopping only saw a small uplift (2.8%) compared to September 2021, as 67% say they are looking for ways to get more value from, or to reduce the cost of their weekly shop. One of the most common ways for this money-conscious group to save is by cutting down on luxuries or one-off treats for themselves (40%). Similarly, 19% say that they are no longer able to afford small luxuries as a pick-me-up.
Three in ten workers (29%) are now taking a packed or home-made lunch into the office, instead of buying food on-the-go, while a similar proportion (28%) are cutting back on treats at work, such as coffees and snacks. One in eight (13%) are even skipping meals at work altogether.
The data shows fuel spend saw its lowest growth (11.1%) in September since March 2021. This was likely due both to the recent decline in petrol and diesel prices, as well as the fact that many Brits are reducing car journeys to save money, with 14% currently choosing to work from home more often to save on travel.
A similar proportion (13%) of workers say they have started walking or cycling to work instead of driving due to rising fuel costs, and 12% have started to commute by public transport for the same reason.
The figures show that animal-loving Brits continue to put their pets at the top of their list of priorities when it comes to personal spending. Of the half of consumers (51%) who own a pet, 33% say they are spending the same amount on pets compared to last year and 17% say they are spending less on themselves so that they don’t have to reduce spending on their pets.
Nevertheless, some pet owners are having to hold back on pet-related purchases as a result of rising prices, with 17% reducing their pets’ treat budget, and 18% buying cheaper or discounted pet food.
Esme Harwood, Director at Barclaycard, said: “As the colder weather starts to set in and energy bills continue to rise, Brits are facing even tougher decisions about where they focus their spending. As a result, discretionary purchases like meals out and clothes have become less of a priority.
“However, Brits are still keen to have a good time while they save money, particularly when it comes to nights in. The increase in spending on digital content and takeaways in September reflects this, and could be a trend that continues into the festive period.
“Elsewhere, consumers continue to take a resourceful approach to money management – including putting aside money for Christmas – which will become even more important for weathering the unpredictable months ahead.”
Makala Green, Financial Expert, added: “From making packed lunches to cutting back on pet-related purchases, Brits are adopting all kinds of tactics to curb their spending during the cost-of-living squeeze. Limiting little luxuries and pick-me-ups, such as coffees and snacks, is an increasingly popular way to save money, as is working from home to save money on travel.
“With the festive period just around the corner, consumers will already be thinking of ways they can spread the cost and avoid missing out on desired items due to potential stock issues. Hopefully the money-saving hacks they have picked up over recent months will also come in handy during this typically expensive time.”
