Money’s too tight to mention as Brits pause life events

no-money2UK consumers across all generations are being battered by the paralyzing impact of the cost of living crisis, with millions hitting the pause button on major life events, from leaving home and changing jobs to retiring, as the nation’s finances are stretched to the limit.

So says the new IPA TouchPoints 2023, a nationally representative survey which quizzed over 3,000 adults aged 15+ in Britain, designed to reveal the habits of British consumers’ daily lives and how their media usage fits into this.

According to the TouchPoints figures, more than a third (37.6%) of consumers are not coping on their current salary. This figure is up 15% from pre-lockdown 2020 (32.6%) and up 22% since the lockdowns in both 2020 and 2021 (both at 30.7%). For the lowest income and disadvantaged groups this figure stands even higher at 60%.

Alongside this, the data reveals that 5.9% of consumers are consolidating their debts and/or remortgaging which marks a 34% increase since pre-lockdown 2020 (4.4%) and a considerable 168% increase over the past six months alone (2.2% in 2022).

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

In pre-lockdown 2020, our mean hours spent inside the home were 17 hours 37 minutes per day, which has now increased to 18 hours and 43 minutes per day.

Concurrently, shopping has declined since pre-lockdown 2020. While supermarkets attract the greatest weekly reach of all shopping outlets (at 63.3%), this is down 7% since pre-lockdown 2020 (68%).

Coupled with this, the weekly reach of the high street has fallen 17% in this same time frame (from 40.5% to 33.6%); shopping centre reach has fallen 8% (from 21.0% to 19.3%) and out-of-town retail parks have fallen 3% (from 14.7% to 14.2%). Meanwhile, the reach of local shops has remained unchanged at 36.5%.

In terms of online shopping, this is up slightly, by 3% since pre-lockdown 2020 (from 49.4% to 50.7%) even though other studies point to a decline.

When consumers do shop, the TouchPoints data reveals a dramatic increase in their search for discounts, money-off and the lowest prices.

Three-fifths of consumers look for the lowest possible prices when they go shopping (60.9%), up 11% from pre-lockdown 2020 (55%), and 41.6% actively look for money-off vouchers (up 31% on the 31.7% in pre-lockdown 2020).

Concurrently, over half of consumers, 52.9%, say they will gladly switch brands to make use of a coupon, up 13% since pre-lockdown 2020 (from 46,7%) and 42.7% say they use a range of supermarkets and shops for their weekly grocery shopping in order to get the best prices, up 14% from 37.5%.

Meanwhile, almost a third (32.6%) of consumers often check the comparative online price of a product they are looking at in a store (up 15% from 28.3% in pre-lockdown 2020).

The knock-on effect of these financial struggles is not just affecting consumers’ daily decisions, the data also reveals consumers’ plans for the next 12 months having to hit pause.

For instance, the number of people planning to start a university course has fallen 53% (3.4% pre-lockdown 2020 to 1.6% in 2023).

Concurrently, the number of people planning to move out of their parents’ home in the next 12 months has dropped by 29% (from 4.1% to 2.9%).

Meanwhile, the number of people planning to move jobs in the next 12 months has fallen 31% (from 11.9% to 7.4%). The number planning on changing career in the next 12 months is down 37% (from 5.4% to 3.4%). And the number of those planning on starting a new business in the next 12 months is down 20% (from 2.5% to 2%).

At the other end of the scale, the number of those planning to retire in the next 12 months has fallen 40% (from 2.1% to 1.3%).

IPA president Josh Krichefski, who is also CEO, EMEA & UK at GroupM, said: : “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. And this is where the TouchPoints data plays a crucial role.

“We can see from the latest survey 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.”

IPA research director Belinda Beeftink added: “The latest data highlights the struggles some people are facing with the cost-of-living crisis. This is impacting their daily lives not only in terms of what they can afford, but what they do, when they go out, when they socialise and crucially for our industry, how they consume different media channels. TouchPoints continues to give us a rounded view of every day life in 2023.”

Related stories
‘New normal’ finally debunked as online sales plummet
Bulking up: Brits find new ways to beat soaring prices
Brands must use marketing to ease consumer squeeze
This time it’s personal: Brands face rise of ‘me-conomy’
Marketers ditch metaverse to embrace generative AI
Brands must embrace ‘life-centric’ approach to thrive
Heaven knows we’re miserable now: Brits shun fun ads