Cost of living: Brits switch to discount brands while 1.7m have cancelled subscriptions like Netflix, reveals Lloyds
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A fifth of people polled by Lloyds Bank have switched to discount brands in a bid to save cash to cope with the cost of living, while 1.7m have cancelled subscriptions like Netflix, it has been revealed.
The shift to discount shopping has been significant during the cost of living crisis, with an 18 per cent increase in consumers looking for a deal on their groceries.
Lloyds latest spending data showed supermarkets with higher prices for average goods saw lower growth in 2022 of just eight per cent, with research by the bank showing a third polled intend to switch to value brands this year.
This comes after the Office for National Statistics showed January’s retail sales volumes were marginally up for January after a sluggish February.
Brits’ consumer spending remains at a low ebb, with inflation in double digits and interest rates being notched up. Many are feeling the pinch due to soaring energy prices and stagnating wages.
Among the 3.7m unwanted services being cancelled according to the bank’s subscription management tool, 46 per cent (1.7m) are quitting media streaming sites like Netflix, Amazon Prime and Disney Plus.
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In second place was ‘marketplace subscriptions’ at 12 per cent, followed by membership of gyms, also at 12 per cent.
In total, Lloyds registered 3,750,000 cancellations since July 2021 to the end of January this year.
“Our latest data shows that customers are adapting to increases in the cost of living in a few different ways – we’ve seen over 3.7 million unwanted subscriptions cancelled and a growth of almost a fifth in spending at discount supermarkets”, said Philip Robinson, everyday banking director, at Lloyds Bank
“These are all really sensible steps to take, as taking the time to do a health check on your finances will make you feel more in control and, potentially, save you money.”
Budgeting tips in the cost of living crisis
Robinson also gave top budgeting tips to help Brits get through the cost of living, including ways to reduce the cost of borrowing through “debt consolidation with your bank or a debt advice charity”
“Bringing together borrowing under a single loan may reduce the overall cost of payments, alongside the interest payable” he said.
He also urged customers to set payment limits, do a regular financial review “to build up a clear picture of your finances”, while being aware of potential support networks to “maximise your monthly income.”
“This might be from government schemes or benefits, tax discounts you’re eligible for, and more.”