The day after the Chancellor announced the government is expected to borrow £111bn more than predicted in March, a new survey reveals that households across the UK have made wide-ranging cutbacks to keep the household budget afloat.
The survey of 2,000 adults by the consumer financial planning business rplan.co.uk revealed that 86% of Britons have made big cuts to keep their household budget afloat, at a time when 75% claimed they were worse off than three years ago - with around one in seven households (14%) more than £500 worse off.
The top 10 cost cutting measures reported to have been taken by UK households included:
- Cutting down spending in the high street (52%)
- Spending less on the weekly food shop (48%)
- Not eating out (46%)
- Switching my shopping to cheaper brands (45%)
- Staying at home in the evenings (44%)
- Cutting down on holidays abroad (30%)
- Making my own packed lunch during the week (28%)
- Buying second hand goods at auction sites or charity shops (26%)
- Putting off home improvement projects (25%)
10. Reducing or stopping charitable donations (21%)
The research suggests the range of short term measures adopted could also have a long-term impact. One in five people surveyed (20%) said they were reducing the amount of money they would save or invest. In addition, 25% said they had no “rainy day” savings and 38% admitted they did not have a long-term financial plan in place to work to.
Andy Creak, Director at rplan.co.uk commented: “As governments seem inclined to borrow more money, the UK consumer is making major cutbacks to keep their budgets afloat. A lot of people are clearly having a tough time, some living on the edge, and it is a cause for concern that many people are making short term cuts without having a robust financial plan in place for the long term. At rplan.co.uk we actively encourage people to balance the short term with the long term and in uncertain times everyone should have a financial plan in place.”
For more information or to arrange interviews with the rplan team contact: firstname.lastname@example.org / Tel: 07581 180501
Notes to editors
- The research was undertaken by Vision Critical among a GB representative sample of 2,222 adults on 4 October 2011. For details of further research including regional findings, contact email@example.com
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