Spending slashed by £1500 as over half report to cutting back in 2018

28th December 2018

Lloyds Bank Spending Power Report.

Spending slashed by £1500 as over half report to cutting back in 2018

· 58% of people have cut back on spending in 2018, saving an average of £125 a month.

· People in the North West are the most frugal, with over two out of three cutting back in 2018

· Half expect to spend less next year, planning to save £164 a month

Over half (58%) of people across the UK have saved £1,499 on their spending in 2018 according to the latest Lloyds Bank Spending Power Report.

The report, which looked at how people changed their spending across the year, also showed that youngsters took the lead in tightening their purse strings with 61% of 18-34 year-olds changing spending behavior to save some money. This is compared to under half (47%) of those over 55 (see table 1).

Younger generations also managed to save the most on spending with 18 - 24 year-olds keeping back £149 a month.

North West leads the way (Table 2)

The North West has reported the largest proportion of spending savers across the UK, with more than two out of three (68%) taking action. Savvy regions also include the West Midlands (62%), Scotland and the South East (57%).

Those in Yorkshire and Humber have cut back the least and were most willing to splash the cash; with only half (51%) saying they had reduced their spending. In fact, this region also reported the lowest actual spend reduction, with residents saving £86 monthly. Londoners kept the most back, with savers claiming to put aside £172 per month.

Where are people making the savings?

Savvy spenders made cuts across the board, with both spontaneous purchases (64%) and grocery shopping (62%) the most common targets of spend reductions. Similarly, 59% made reductions to the amount they splashed out on leisure activities.

Consumers have also turned to coupons and loyalty discounts in order to manage their spending - with 43% having collected and used vouchers from retailers, and nearly a quarter (23%) turning their heads to savings websites for cut price goods.

What does the future have in store?

Fewer people plan to cut back on their spending in 2019 compared to 2018, with exactly half believing they will take action to reduce spending. Again, it is those in the North West taking the lead with 60% planning to cut back, followed by the West Midlands where 57% plan to take the same approach.

However, even though less expect to cut back at all, those who will are planning to save on average £164 every month.

Robin Bulloch, Managing Director, Lloyds Bank, said: "Although 2018 has been a year of uncertainty for consumers across the UK, the majority are taking positive steps towards keeping back cash, showing that they recognise the need to take action and engage with their finances."

"Taking the time to research your purchases to obtain the best deals possible can ultimately save you a pretty penny."

Table 1 - Average spending cuts by age in 2018

Age - Spending cut (monthly)

18-24 - £148.94

25-34 - £151.01

35-44 - £147.22

45-54 - £99.53

55-64 - £91.92

65+ -£85.67

Table 2 - 2018 Spending cuts by region

Region - Proportion planning to save on spending

Scotland - 57%

North West - 68%

Yorkshire and Humberside - 51%

East Midlands - 54%

West Midlands - 62%

East of England - 56%

Greater London - 57%

South East - 57%

South West - 54%

Wales - 56%