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TheStreet Open House

The Real Household 'Budget' Revealed

CHESTER, England, March 19, 2013 /PRNewswire/ --

  • 76 per cent have cut back their spending on luxury items or necessities
  • 71 per cent now opt for supermarket 'own brand' foods instead of branded goods
  • 55 per cent have turned off their heating even when it's cold
  • One in ten (11 per cent) are skipping meals to feed their family

With Chancellor George Osborne revealing the changes he'll be making to the nation's finances in the Budget tomorrow, MoneySupermarket today reveals the findings from its own 'Real Budget Report' - highlighting the tough measures being taken by households across the country as a result of rising cost of living and  austerity measures.

The 'Real Budget Report' looked at household adjustments that have been made in the past year, as well as plans for household spending over the next 12 months, as families across the nation seek to make their own ends meet.

Three quarters of consumers (76 per cent) say they have limited their household spending in the past 12 months, with more than a third (38 per cent) cutting back spending on necessities in the last 12 months and 65 per cent cutting back spending on luxury purchases.

More than one in ten people (11 per cent) who have made cut backs to necessities have skipped meals to make sure their kids are fed, and nearly one in five (17 per cent) have not paid energy or credit card bills in an attempt to cut back on household spending.

The 'Real Budget Report' also highlights other changes being made by those who have been forced to cut back, including:

  • 71 per cent now opt for supermarket's 'own brand' foods over branded goods;
  • 55 per cent have turned off their heating even when it's cold;
  • 30 per cent have reduced the amount they've been able to save (e.g. into a savings account or a pension);
  • 45 per cent cut money-off coupons out of newspapers/magazines/online;
  • 43 per cent say they're now turning to price comparison sites to shop around for the best deals;
  • 22 per cent have done more DIY instead of hiring professionals.

Luxury spending has also been reigned in, with 70 per cent of those who have cut back on luxury purchases saying they've cut back on eating out or ordering takeaways, while 60 per cent have cut back on days / nights out, and 59 per cent have cut back on treats for themselves. Nearly half (45 per cent) have cut back on holidays, and 17 per cent have cancelled a membership subscription such as the gym.

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