A study reveals the magnitude of household expenditure cuts, with dining out suffering the most.

According to research, more than half of British consumers have reduced discretionary spending since the beginning of the year, with nearly two-thirds opting to spend less on dining out.

The survey of 3,000 consumers also revealed that 49% plan to spend less on non-essentials now that energy bill support payments have ended, while 30% will rely on their savings to make ends meet. From October to March, households received a monthly discount of approximately £67 through the government’s energy bill assistance program, which will now become means-tested.

Beginning in April, many account bearers will be subject to bill increases of up to 17% that exceed inflation. 

51% of those polled by KPMG said they would be paying more for broadband beginning this month, while 49% said the same about their mobile plan.

55% of consumers have reduced their non-essential expenditures so far this year, according to the research, particularly on dining out (63%). The principal reason cited was the price of utility expenses.

Numerous shops, pubs, and restaurants already struggling to recuperate from the economic impact of Covid will be alarmed by the decline in discretionary spending. Since the government drastically reduced its energy assistance over the weekend, small retail and hospitality businesses already face the risk of bankruptcy due to skyrocketing gas and electricity costs.

36% of those surveyed had converted to less expensive retailers to save money, 37% had purchased more store-brand and value products in supermarkets, 33% had purchased fewer items, and 11% reported using credit more frequently.

About a third (34%) of the consumers surveyed, who had an average of £7,744 in savings, said they were using their savings to cover essential expenses this month. 

41% of those with savings said they had not purchased any expensive items this year, and 34% said they would not do so for the remainder of the year.

Overall, the feeling of financial security among consumers this year has been essentially balanced: 25% felt more secure than they did at the start, 29% felt less secure, and 45% felt the same as they did at the start.