Eight in ten have tightened their purse strings in the past 12 months with many worried about having to make more cutbacks following this week’s budget.
The typical Brit has managed to squirrel away £1,411 this year by trimming household spending to cover essential costs amidst rising living expenses. A survey of 2,000 adults revealed that a whopping 83% have tightened their belts over the past year, with holidays and social outings being the most significant cutbacks. This has led to savings of an average of £117.60 per month – a total of £1,411.20 across the year.
Many families have switched to more affordable supermarkets for their weekly groceries, axed TV subscriptions, or cut down on buying new clothes. What’s more, in a bid to boost their income, 35% have sold old clothes, 28% have invested money, and 21% have started a side hustle.
Almost half (45%) intend to save the money they’ve accumulated from these cutbacks to cope with rising costs, while 29% plan to use it for essential spending.
But while 64% blame rising costs for their cutbacks, 20% are concerned about possible tax rises and 38% think they will be in a worse financial position after the budget – with the majority likely to make further cutbacks.
And over a third are anxious they might not be able to afford Christmas this year.
The research was commissioned by electric car manufacturer Leapmotor following the launch of its latest SUV, the B10. Priced at £29,995, the B10 is touted as one of the most affordable mid-sized SUVs on the market, offering a cheaper alternative to the Kia Sportage and other competitors in its category.
Damien Dally, UK managing director, said: “A car is a necessary purchase for many, but we appreciate it’s not a small financial outlay – and with the potential introduction of a pay-per-mile electric vehicle tax, drivers may be put off making the switch to electric now.
“That’s why we want to give people a more affordable option, an option to spend less on their car and more on the things that really matter – like going out with friends and family or creating shared experiences that make life more meaningful.”
Recent news about the possible implementation of an EV fuel duty – where EV owners would pay an additional fee based on their annual mileage on top of their road tax – has reportedly deterred 28% of Brits from considering an electric vehicle.
However, if the initial and running costs of an electric car, including charging expenses, were cheaper than fuelling their current vehicle, 45% would contemplate making the switch.
Damien added: “Money is tight for many and the speculation surrounding the Budget is only making people worry more. Brits are cutting back on ‘luxuries’ and building up a kitty for life’s essentials.
“But for savvy shoppers there’s smart, more affordable choices people can make without having to compromise on quality.”
TOP 20 WAYS BRITS HAVE MADE CUTBACKS THIS YEAR:
1. Spent less on eating out
2. Cut back on takeaway meals
3. Reduced online shopping
4. Delayed big purchases
5. Used cashback or discount apps
6. Changed to more affordable supermarkets for food shopping
7. Went on less holidays
8. Less nights out with friends
9. Sold unused items online
10. Less days out with friends
11. Made packed lunches instead of buying out
12. Less days out with family
13. Less nights out with partner
14. Shop in charity shops more often
15. Less nights out with family
16. Cancelled TV subscriptions
17. Bought more second hand clothes than new e.g. using platforms like Vinted
18. Went on smaller / more affordable / shorter holidays
19. Shopped during sales only
20. Switched to cheaper mobile phone plan
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