UK households have slashed their personal spending during lockdown – saving an average of £2,879 each during the 13 weeks of quarantine, according to a new report.
The study by online financial comparison experts money.co.uk shows that 71% of UK households have saved cash during lockdown, with an average weekly saving of £221.50 The personal finance experts at money.co.uk have produced a lockdown best savings calculator (INSERT LINK HERE) to show exactly how much households could save if they continue to keep their lockdown saving habits.
Salman Haqqi, personal finance expert at money.co.uk, said: “During lockdown, many people have cut back on their spending on non-essential items. The savings have been largely made by households cutting back on the amount of cash they spend on items like alcohol, cigarettes, clothes, make-up, cosmetics and grooming products, meals out, haircuts and beauty treatments, plus shop bought lunches and takeaway coffees.
“They’ve also spent less because many are not having to use their car to travel to work and have also cut back on other outgoings like sports and gym memberships.”
The biggest savings made by UK households has been on buying clothes (£34.39 per week on average), running the family car (£34.14 per week on average), and paying for meals out (£33.57 per week on average) according to the data.
Many have stopped buying clothes because staying at home has meant there’s no need for new garments, the report reveals. Some have even started making their own clothes, saving significantly on the cost of shop bought items.
The next biggest saving comes on the back of many cutting back on the amount of alcohol they’ve consumed during lockdown – with an average saving per household per week of £27. Brits have also cut back on haircuts, spa treatments and manicures, saving around £25 a week, with reduced spend on shop bought lunches and takeaway coffees because everyone has been working from home also accounting for a further £21 saving per week.
Londoners have saved the most on alcohol and clothes during the lockdown with an average saving of £39 per week on booze and an average saving of £44 on buying clothes during the last 13 weeks.
Outside London, the Welsh have saved most on cosmetics, perfume and male grooming products during lockdown – an average of £21.46 per week.
Those living in the West Midlands have saved the most on eating out during lockdown – with an average saving of £36.38 per week.
And those living in the North-east have saved most on not running their cars during lockdown – an average saving of £37.69 per week.
If households continue to save at the same pace now that lockdown is relaxing, they could save an astonishing £8,638 on average by the end of 2020.
Salman Haqqi added: “Almost 8 out of 10 householders we surveyed (79%) say they aim to continue to save as much as possible even though lockdown is relaxing.
“The biggest opportunity to save money, according to our study, is in cutting back on going for meals out. More than a third of the 2,000 people we surveyed said that would be the top priority for continuing to save money.
“Cutting back on shop bought lunches (30%), takeaway coffee and new clothes (29%), running the car (20%) and buying alcohol (17%) are the other areas people are likely to continue to try and cut back in order to save once lockdown is over.”
Brits are less likely to continue to try and save money on paying for haircuts, buying cosmetics or grooming products, gym and sports memberships and cigarettes, the study reveals.