Half of UK consumers have cut back on non-essential spending

More than half of UK consumers have reduced their discretionary spending since the start of the year, with nearly two-thirds choosing to reduce the amount they spend on eating out, according to a KPMG study.

As households grapple with a slew of bill hikes and tax hikes taking effect from the start of this month , the survey of 3,000 consumers also found that 49% plan to spend less on non-essentials now that energy bill support payments have ended, while 30% will use their savings to meet .

The Government's Energy Bill Support Scheme provided a monthly rebate of around £67 to households from October to March, but this support will now be subject to means-tested.

Telecom providers imposed up to % above-inflation bill hikes on many account holders starting in April. Of those polled by KPMG, 51% said they would pay more for their broadband starting this month, while 49% said the same for their mobile plan.

So far this year, 55% of consumers have reduced non-essential spending, according to the study, especially when dining out (63%). The cost of utility bills was cited as the main reason.

The cut in discretionary spending will worry many shops, pubs and restaurants which are already struggling to recover of the economic crisis Covid blow. Small retail and hospitality businesses are already facing the threat of bankruptcy due to soaring gas and electricity costs, since the government drastically cut energy support over the weekend.

Of those surveyed, 36% had turned to cheaper retailers to save money, 37% had purchased more value and own brand products in supermarkets, 33% bought fewer items and 11% said they used more credit.

Of the consumers surveyed, who had an average savings, about a third (34%) said they used their savings this month to meet essential expenses. Of those with savings, 41% said they hadn't bought big-ticket items yet this year, and 34% said they wouldn't for the rest of the year either. /p>

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Overall feeling of financial security so far This year has been broadly balanced among consumers: 25% felt more secure than at the start of the year, 29% felt less safe and 45% felt like the start of the year.