British consumers rein in luxury spending as energy bills rise by 48%

British consumers are reining in unnecessary purchases after a leap in energy prices ate into their discretionary spending, forcing people to cut back on new clothes, evenings out and lunches out.
 

Barclaycard, which manages about half of the nation’s credit and debit card transactions, said outlays on non-essential items in rose 1% from a year ago in September, well below the 3.6% pace recorded the month before and the lowest since a coronavirus lockdown in February 2021.

It pointed to a 48% increase in average cost of utility bills as one of the primary reasons for the drop and said consumers are looking for ways to save money to ensure they can afford heating this  winter. More than two thirds are seeking to reduce energy use at home.

“From making packed lunches to cutting back on pet-related purchases, Brits are adopting all kinds of tactics to curb their spending during the cost-of-living squeeze,” said Makala Green, a financial planner cited in the Barclaycard report. “Limiting little luxuries and pick-me-ups, such as coffees and snacks, is an increasingly popular way to save money, as is working from home to save money on travel.”

Ahead of the Christmas shopping period, 39% of people have already started putting money aside, according to Barclaycard.