How the UK's spending patterns are changing under COVID stress

A pair of new studies illustrate the proportion of people struggling financially as a result of the pandemic, and what’s happening to those insulated.  

Why it matters

While we know the COVID-19 pandemic has pulled the economy in two, with desk-based workers often saving money compared to before and non-desk workers pushed into precarity, our understanding of the issue must move beyond the anecdotal.

Two studies, one from NielsenIQ, and the other by YouGov and paid for by Tesco Mobile, indicate the problem. Tesco Mobile, in particular, is making the point that other network providers ought to reverse mid-contract price rises which threaten poorer people’s access to the internet at a time of isolation, especially as more than half were unaware a network was allowed to do that.

Details

• YouGov, from its sample of 2000 adults, finds that 9% of Brits, more than five million, have been unable to pay essential bills since last March.
• Worse still, more than a third (38%) say a small increase in household or utility bills would cause them financial worry.
• Nielsen, meanwhile, finds in the UK cut of a 15 country, 11,000 participant survey, that the proportion of those identifying as newly constrained grew from 29% to 35% between September and December 2021.
• Simultaneously, at 49%, Britain possesses one the highest levels of insulated consumers globally — those who have had little to no impact on their financial situation as a result of COVID.
• Of these, 17% say their income has remained flat or actually improved.
• Only Germany has a higher proportion of these insulated and unrestricted at 20%.

Spending patterns reflect new pressures

• 46% of consumers said they select the lowest priced product irrespective of brand
• 56% select lowest priced product from amongst their preferred repertoire of options
• 42% buy whatever product is on promotion, regardless of brand

Sourced from YouGov/Tesco Mobile, Nielsen