25, August, 2022, LONDON –
The impact of the cost of living crisis on consumers has been laid bare in new research from the personal finance comparison site finder.com. The nationally representative survey revealed a staggering 96% of people in the UK are giving up at least one thing in order to protect their finances.
This means just 1 in 25 people are able to avoid altering their lifestyle in order to cope with things such as rampant inflation, including soaring energy bills.
Millennials (aged 24 to 42) are the generation most affected by the cost of living crisis, with 98% having to give up at least 1 thing. The silent generation (aged 74+) are the best-prepared generation for the current squeeze on finances, although the majority (87%) are still having to alter their lifestyle.
What are Brits giving up?
Brits were also asked what specific goods or services they have had to cut back on (or plan to) to protect their finances, and food is top of the list.
The 2 most common things that Brits are giving up are eating out (41%) and takeaways (40%), with home cooking set to rise. Even this is taking a hit, though, as almost 1 in 6 (17%) said they will need to give up higher quality food from supermarkets and go for basic ingredients instead.
It isn’t just eating out that is taking a hit either, with 3 in 10 (30%) planning to go on fewer , or no, night outs for the foreseeable future. And over a fifth (22%) of Brits will cut back on entertainment such as trips to the cinema and theme parks, plus 17% will go to fewer gigs and events. Even boozing at home may see a hit – 9% said they will cut back on alcohol subscriptions.
Buying items like clothes and appliances will see the third biggest hit (31%) while over a quarter (26%) will cut back on foreign trips and 15% will do the same with domestic trips. Worryingly, millions of Brits are leaving themselves at risk of huge medical bills abroad, as 6% are planning to stop getting travel insurance.
There will be further effects from these cutbacks in the shape of lower charity donations. 1 in 7 (14%) Brits say they will give less, or stop giving at all, to charity as they grapple with their own cost of living problems.
To see the research in full visit: https://www.finder.com/uk/cost-of-living-sacrifices
Commenting on the findings, Liz Edwards, editor-in-chief at the personal finance comparison site finder.com said:
“There’s no doubt that it’s a very difficult time for many of us. Inflation continues to rise, and energy prices are set to go even higher, so it’s understandable that something has to give when it comes to our spending. If you’re looking for ways to become more economical with your money, or more ways to make money, here are some tips:
– Take advantage of bank switching offers, worth up to £175 currently. The Current Account Switching Service (CASS) does the hard work for you, like switching your direct debits, and it generally takes just a few minutes to complete the application process. There are “refer-a-friend” deals that pay out, too.
– Smart savings apps are a unique way to save money, with a lot of these apps rounding up your purchases and putting the difference into savings pots. You can set up multiple pots where you squirrel away change that can turn into a rainy day fund or to help save up for a major purchase.
– Have a think about what services or subscriptions you could live without . For example, cancelling a subscription service that you don’t use often, or downgrading it, could save you a lot of money in the long run.
– There are simple ways to save money on energy bills as well. Things like only boiling the amount of water you need in your kettle, turning lights and heating off when you’re not home and tucking your curtains behind the radiator on cold nights are all methods that will save you cash over the long run.”
Finder commissioned Censuswide on 27th July to 29th July 2022 to carry out a nationally representative survey of adults aged 18+. A total of 2,002 people were questioned throughout Great Britain, with representative quotas for gender, age and region
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com's review pages for the current correct values.
finder.com is a personal finance website, which helps consumers compare products online so they can make better informed decisions. Consumers can visit the website to compare utilities, mortgages, credit cards, insurance products, shopping voucher codes, and so much more before choosing the option that best suits their needs.
Best of all, finder.com is completely free to use. We’re not a bank or insurer, nor are we owned by one, and we are not a product issuer or a credit provider. We’re not affiliated with any one institution or outlet, so it’s genuine advice from a team of experts who care about helping you find better.
finder.com launched in the UK in February 2017 and is privately owned and self-funded by two Australian entrepreneurs – Fred Schebesta and Frank Restuccia – who successfully grew finder.com.au to be Australia's most visited personal finance website (Source: Experian Hitwise).