Takeaways and charity donations are top areas where Brits plan to cut spending

06 July 2023 , 12:32

449     0

Takeaways are the top area where Brits are planning to cut spending (Image: SWNS)

Over a quarter of Brits (26%) are planning to save money by cutting back on takeaways and charity donations – but 57% believe they will be in a better financial position next year, research has found.

Holidays (23%), days or evenings out (22%), and hobbies or activities (16%) are other areas in which Brits are seeking to curb their spending.

And over a third (34%), of the 2,000 adults polled, say they are now more likely to buy second-hand items – perhaps driven by a desire to be more sustainable.

There is also a growing sense of self-reliance, as 36% of those polled are becoming more likely to tackle DIY projects themselves, rather than hiring tradespeople.

Vicki Joshi, chief customer and brand officer at AXA UK, which commissioned the research, said: “People are having to make tough choices when it comes to their finances, and will likely have to continue to reduce spending on things they otherwise would like to keep up.

Martin Lewis issues 8-week warning to phone users ahead of huge price hikes

“Especially when it comes to insurance, it’s no surprise that cost continues to be the main consideration for most, as people rightly want a competitive price and to know they’re getting a good deal.”

And nearly a quarter are cutting back on spending when it comes to holidays (SWNS)

Despite the economic downturn and cutbacks, people remain optimistic about their financial health, with 57% rating their situation as above average.

And while they are reducing spending in many areas, there is a reluctance to ditch insurance policies – with 70% and 71% having car and home insurance respectively, while 44% have breakdown cover.

Other popular insurance products include travel (28%) and pet insurance (25%).

Almost half of those polled (47%) consider price to be the most important factor when buying insurance, ahead of the level of cover (26%), and it being from a brand people trust (12%).

For those thinking about getting insurance in the next three months, half said they were doing it for peace of mind.

Vicki Joshi added: “It’s essential their policy has the right level of cover for when they need it the most.

“While there are unquestionably difficult circumstances, it’s encouraging to see most people are optimistic about the future, and are making short-term changes to protect the things that matter to their future.”

TOP 10 THINGS BRITS PLAN TO CUT BACK ON:

1. Takeaways (26%)
2. Charity donations (26%)
3. Magazines and newspapers (23%)
4. Holidays (23%)
5. Days or evenings out (22%)
6. Clothes and shoe shopping (18%)
7. Hobbies and activities (16%)
8. Alcohol (16%)
9. Gifts and celebrations (15%)
10. Gambling (15%)

Martin Winter