Many Britons to stick to lockdown spending habits - survey

By

Nigel TAYLOR

Published
Apr 12, 2021

News to dampen non-essential retail reopening-day enthusiasm. Don’t expect those who’ve saved money over the past year during enforced lockdowns to hit the spend, spend, spend button.

A third of people who have managed to save money during lockdowns aren’t planning to spend it, according to a survey by comparethemarket.com.

Its survey of more than 2,000 people in the UK this month found that 56% have managed to save during the year-long pandemic restrictions, but 33% plan to save the money. And another third say they will spend less than half of what they saved.

The reason for the caution is that nearly 10% are worried that members of their family could be furloughed, made redundant or see their income fall in the coming months.

Also, around 52% of families with children at home believe the pandemic will have a long-term negative impact on their finances, compared with a third of those without children at home.

Meanwhile,  25% of families with children think it could take up to a year to get back on track financially, and 11% expect to cut back or make financial sacrifices for several years after the lockdown ends.

Nearly a third of families with children at home have made use of some sort of payment holiday since the pandemic began, compared with 12% of households without children.

Around two-thirds of parents with children are worried about their ability to pay household bills in the future.

Of those who will spend their savings, the top items will be holidays. Many are also looking to spend in pubs, cafes and restaurants. On the upside, all of that could encourage more fashion shopping.

Ursula Gibbs, director at comparethemarket.com, said: "We are seeing a significant reset in the way that people think about their personal finances in the wake of Covid-19.

"The past year has been extremely tough on household budgets and really underlined the value of rainy-day funds, with our research suggesting this has helped kick-start a savings culture".

She added: "As people have driven and shopped less, cooked at home, and found ways of exercising that didn't involve going to the gym, it seems that many want to carry on some of the financial benefits of the lockdown lifestyle".