40% of Brits struggling to cope on salaries, new data finds

By Jo Gilbert

Published: 21 June, 2023

Consumers are hitting the pause buttons on their lives as the cost of living continues to encroach on the most basic part of household incomes, new data has found.

The pressure on household incomes has become a familiar part of the economic narrative over the past two years, with buying habits across all sectors being impacted as a result.

Now, new data from TouchPoints has shown the extent to which Brits are struggling with the ongoing cost of living crisis. The data, shared exclusively with Harpers for the drinks industry, shows that almost 40% of consumers are not coping on their current salaries. They are also spending over an hour longer indoors, while 60% are looking for the lowest prices when shopping. When it comes to longer-term plans, the trend is the same: from moving out of parents’ homes, to changing jobs, to retiring – they are pressing pause.

“There can be a danger when looking at data points that we look at the numbers, but don’t fully appreciate the people and the story behind them,” Josh Krichefski, IPA president and CEO, EMEA & UK, GroupM, said.

“From the latest TouchPoints data, we can see the significant impact of the cost-of-living crisis on consumers’ lives. As financial burdens increase, halting both our short and longer-terms plans, it is imperative that brands and their agencies are mindful of these challenges and work to understand the role we can play in helping to add value to consumers’ lives at this tough time.”

As consumers feel the pinch, the percentage of people staying in has increased by 66 minutes per day since pre-lockdown 2020.

Concurrently, shopping has declined since pre-lockdown 2020, too. While supermarkets attract the greatest weekly reach of all shopping outlets (63%), this is down 7% since pre-lockdown 2020 (68%), while the weekly reach of the high street has fallen 17% in this same time frame (from 41% to 34%).

There has been some indication recently, that out of home food and drinks spend was ringfenced from the worst of the crisis, with footfall remaining high. However, hospitality profits have continued to suffer. Now, these findings – including a rise in budget shopping habits among consumers (now up to 60.9% of the total) – show just how acute financial struggles have become, for many.

Belinda Beeftink, research director for the IPA, which produces TouchPoints, also highlighted the struggles many are currently facing with the cost-of-living crisis.

“This is impacting [consumers’] daily lives, not only in terms of what they can afford, but what they do, [including] when they go out and when they socialise.”

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