UK Consumers to Save on Essentials, Splash on Events in 2025

London: So, it looks like UK folks are being a bit more careful with their cash these days. A recent report shows that spending on essentials barely budged in 2024. Instead, people are treating themselves to little luxuries like concerts and trips.

According to Barclays, spending on must-haves only went up by 0.9% last year. That’s a drop from 3.9% the year before. Supermarkets and fuel sales are struggling, but people are still keen on enjoying live events, like Taylor Swift’s concerts. It’s like they’re finding joy in small things during tough times.

Experts say this trend of “conscious consumerism” is here to stay. Entertainment is likely to keep thriving as Brits redefine what they consider essential. Even with rising incomes and lower borrowing costs, many are still cautious about spending.

Labour’s recent budget eased some worries about tax hikes, but now people are anxious about job cuts and inflation. It’s a tricky situation for the government as they try to boost the economy.

Interestingly, many households are saving more than usual. Almost half of UK consumers are cooking at home to save money, and a good number are even interested in joining ‘no-spend challenges’ to cut back on non-essentials.

Travel and entertainment are becoming the new must-haves. While people are still looking for food deals, nearly 40% admit they often overspend when on holiday. And despite rising streaming service costs, most aren’t cutting back on that area.