More people spending evenings at home to save money
New research shows 53% of people plan to cut down on buying clothes or eating and drinking out
The majority of people are spending more evenings at home to save money according to a credit card company.
To save money, 51% of people are planning to spend more evenings at home over the coming months, entertaining themselves with box sets, video games and board games instead of going out.
Barclaycard, which sees nearly half of the nation's credit and debit card transactions, said that in September spending on non-essential items grew by just 1.0% year on year, which is the lowest point since February 2021, when coronavirus measures were still in place.
More than half (53%) of people polled are planning to cut down on discretionary spending, such as buying clothes or eating and drinking out, to be able to afford their energy bills this autumn and winter.
Nearly two-thirds (65%) of those questioned said they are finding ways to save energy at home to help them afford rising household bills.
Turning off lights when they leave a room, wearing more layers, and boiling only as much water as they need are among the habits people are adopting, according to the research.
Putting aside money for Christmas
And among the two-thirds (67%) of people who are looking to reduce the cost of their weekly shop, 30% are only purchasing some items on a "need-to-buy" basis, to save money and avoid waste.
Two-fifths (39%) of those surveyed have already started putting money aside for Christmas, to ensure they have enough saved for gifts and get-togethers.
Despite the pressure on household budgets, a third (33%) of pet owners said they are spending the same amount on their animals as they did last year - and 17% are spending less on themselves so they do not have to reduce their spending on their pets.
Esme Harwood, director at Barclaycard, said: "Consumers continue to take a resourceful approach to money management - including putting aside money for Christmas - which will become even more important for weathering the unpredictable months ahead."
Cost of living crisis
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.