One third of consumers plan to reduce their household spending this year

KPMG survey 3000 UK consumers about spending intention.

KPMG survey 3000 UK consumers about spending intention.

With the cost-of-living squeeze underway, 32% of consumers plan to cut back on their household spending this year, according to a survey of 3000 UK consumers by KPMG.

Only one in ten (9%) said their spending will increase, while half expect their spending level to remain the same this year as it was in 2021. 

Spending less on eating out was the most common answer (55%) amongst those consumers looking to reduce their 2022 household spending and half aim to spend less on clothing, rising to 59% amongst women polled. This was followed by 49% who said they would cut down on takeaway orders.

Linda Ellett, Head of Consumer Markets, Leisure and Retail at KPMG UK, said:

“The cost-of-living squeeze is underway for many households and it’s not a surprise to see a third planning on reducing spending, and less than one in ten planning to increase their spending.

“Faced with inflationary pressures, some businesses are mulling upping their prices, or have done so.  But they will be mindful that they are operating in a marketplace where consumers are themselves having to tighten the purse strings. 

“The competition for share of wallet in 2022 is heating up.  It’s vital that businesses double-down on their productivity, on the value and efficiency of their supply chain, and assess whether new products or offers can give them an edge in this landscape.”

A quarter (26%) of those surveyed hadn’t managed to save during the pandemic.  Of the 74% that had, the rising price of goods and services was named as the biggest (23%) deterrent to spending savings, followed by higher taxes and household bills (17%), then uncertainty linked to the pandemic (13%). 

 

ENDS.

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Notes for Editors:

KPMG UK worked with OnePoll to survey 3000 UK adults (nationally representative) between December 13 and 17.

Consumers were asked: when thinking about your household income for 2022, are you expecting to?

Cut back on my spending
32%
My spending levels will remain the same 48%
Probably increase my spending 9%
Not sure 11%

 

The 961 consumers looking to reduce their spending were then asked to select things that they will look to spend less on in 2022.  They said:

Eating out 55%
Clothing 50%
Takeaways 49%
Weekly food and drink shopping 45%
Holiday(s) 33%
Technology, such as a mobile phone 26%
Household electronics (such as a TV) 22%
Household appliances (such as a fridge) 20%
Property (purchase, or extension/renovation) 19%
Car or motorbike 17%
Other purchases 6%

 

For interview:

Steven Reilly-Hii, Media Relations Manager (Consumer Markets), KPMG LLP, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020. KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.