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Home Finance Cost of living crisis impacts spending plans of 75% of people in the UK – research reveals

Cost of living crisis impacts spending plans of 75% of people in the UK – research reveals

by Staff GBAF Publications Ltd

WHAT: Toluna’s Global Consumer Barometer Study is a regular index that taps into a community panel of 40+ million members to provide accurate and timely information on the world’s current perceptions. The latest research surveyed 1,011 people in the UK.

KEY FINDINGS

Consumers are feeling the impact of price hikes

As the cost of living rises, from energy prices and food shopping bills to council tax rates and petrol expenses, people across the UK are feeling the pinch.

The research revealed that over half of people (51%) believe they’ll be worse off financially in the next three months and are planning to scale back on spending due to the impact of increased costs and price changes.

Out of those surveyed:

  • An overwhelming 93% of respondents said they’re being impacted by higher prices when it comes to buying groceries
  • 80% said they’re feeling the impact when it comes to purchasing clothes and 74% of people are feeling the effects of price changes on electrical goods (such as computers, phones, and home appliances)
  • 74% are feeling the impact when eating out at a restaurant or pub
  • 67% of people have noticed the impact on their mobile phone package as soaring inflation rates have pushed up monthly phone charges
  • Two-thirds of respondents said higher prices have hit their music and TV subscriptions, while 59% have noticed an effect on household subscriptions (i.e. cleaning products or staples like coffee and tea)
  • 66% are feeling the impact of higher prices when ordering takeaway food and drink

The cost of food, beauty and household items skyrocket

When asked about their weekly or monthly food shopping bill, respondents revealed where they’ve seen prices rise the most:

  • 77% of respondents said the price of fresh foods has risen; nearly a third (32%) stated that fresh food prices have increased a lot
  • 65% of people said that dried foods such as pasta, rice, packet sauces, and biscuits are now more expensive
  • 64% of respondents said the cost of bakery items have increased
  • 63% said that frozen food prices had also increased; nearly one in five (19%) say that frozen food costs are now a lot higher
  • 60% of people noted increases in household cleaning and laundry items
  • 42% have experienced price hikes on pet care items
  • Over half of respondents (55%) have experienced a rise in the cost of health and beauty products

How are people going to tackle ever-rising prices?

People are looking to cut back on what they’re buying, adjust where they’re buying, and adapt how they use products.

  • Over a third of respondents (38%) plan to switch to supermarket and store own-label products, forgoing their preferred brand names to save money
  • 29% of people are planning to change the supermarket where they usually shop to save on food costs, and 27% are changing the number of snacks they buy and where from
  • Over a quarter (26%) of those surveyed revealed that they’re going to change brands to save money

Everyday behaviours will change – turning lights off, shorter showers and cold washes

  • Over half of respondents (57%) said that they’re planning to turn lights off in their home whenever possible to help manage finances
  • 47% of those surveyed are going to reduce the target temperature of their heating
  • A third of people are going to take shorter showers to reduce water bills
  • 30% of those questioned are planning to use eco/cold washes on washing machines to save money

Financial support

Despite changing spending habits and cutting down on certain activities, it’s not going to be enough for everyone with respondents identifying who they will turn to in the next three months for financial support if they needed it.

  • 38% of people said they’d turn to family members for help
  • One in five people (20%) said they would seek support from their bank or building society
  • 17% of respondents would ask friends for financial help
  • 13% of those surveyed would seek benefits support
  • 11% of people said they would turn to food banks if they needed to

Lucia Juliano, Head of Research, UK & Netherlands at Toluna said: “It’s clear that the cost of living crisis is already starting to bite. We’ve seen an immediate change in people’s spending habits with many cutting back on what they enjoy, and also need, to help pay the bills. From our research, people are committed to making key lifestyle changes to ensure they keep the cost of living down as much as possible. Brands must understand this and be prepared to respond. From switching products to shorter showers, cost is a key driver in daily activities, food choices, and social interests. It’s likely to become even stronger of a priority with higher interest rates and even more energy

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