The U.K.: Over two-thirds of consumers to reduce non-essentials in 2023

Date: 2022-12-30   Author: Pankaj Singh  Category: #news

The U.K.: Over two-thirds of consumers to reduce non-essentials in 2023

Two-thirds of the U.K. consumers are reportedly intending to reduce their non-essential spending in 2023 due to concerns regarding the rising cost of living, according to a survey.

Well-known accounting firm KPMG stated that 61% of customers in a survey of 3,000 were ready to limit their expenses on eating out, vacations, and other non-essentials, underscoring the pressure that inflation is putting on households and the broader economy.

According to the study, the major obstacles to discretionary spending were found to be the rising costs of necessities like food, petrol, and housing as well as how much farther these costs would climb.

Apparently, households all throughout the U.K. have tightened their budgets to cover rising electricity and gas bills and the cost of weekly groceries, causing the Bank of England to issue a warning about a protracted recession. Inflation has also reached 10% for the first time since the early 1980s.

According to official projections, extreme inflation will purge out the growth of past eight years by reducing average real pay and reducing the standard of living by 7% over the next two years, ending in March 2024.

The KPMG poll revealed that one in ten persons had no savings, showing the uneven impact for some households. In 2023, only 4% of respondents claimed that they would be able to raise their non-essential spending, while 25% stated they would maintain their 2022 levels.

When asked how they were paying for essentials, 43% of those with savings stated they were using their savings. In some low-income household divisions, this number has jumped to over 80%, illustrating the disproportionate effect of living expenses on poorer households.

After April, when the administration will restrict the amount of support offered to families by raising the cap on monthly bills for a typical home from £2,500 (3006.94) to £3,000 ($3608.32), one in ten customers expressed concern about rising energy costs. Consumers also mentioned variable-rate mortgages and the termination of fixed-term mortgage agreements acted as barriers to spending.

Source credit:

About Author

Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Swiss-based Lonza acquires Synaffix to expand its ADCs portfolio

Author: Pankaj Singh

Lonza, a leading pharmaceutical company based in Switzerland, has reportedly expanded its antibody-drug conjugates (ADCs) portfolio with the acquisition of Dutch biotechnology business, Synaffix for a total consid...

Xiomi partners with Indian assembler Dixon to strengthen supply base

Author: Pankaj Singh

Xiaomi, the leading Chinese smartphone manufacturer, has reportedly collaborated with an Indian contract company, Dixon Technologies, for the manufacturing and export of its mobile phones. This move aligns with the Chi...

UAE’s ITC, Google join forces to leverage AI data & technologies

Author: Pankaj Singh

Abu Dhabi Department of Municipalities and Transport’s Integrated Transport Centre (ITC) has reportedly signed two agreements with Google in a bid to showcase the country’s efforts aimed towards advancing i...