The average UK household is now spending £1,535 every month on essential costs, according to new research from Uswitch. Despite a fresh wave of rising household bills, millions are refusing to cut subscriptions for TV streaming, music services and gym memberships, which have become the country's 'new essentials'.
Streaming and gym viewed as essential
Almost three in five households (59%) say at least one of their regular bills has increased over the past three months. Yet two-thirds (66%) would not consider cutting back on streaming services such as Netflix, Disney+ and Amazon Prime, while 61% would protect music subscriptions including Spotify and Audible. Six in ten (60%) also refuse to give up their gym membership.
These monthly subscriptions are now viewed almost as essential as paying utility bills. Households are nearly twice as likely to cut spending on takeaways than streaming services. Nearly half (47%) would reduce spending on takeaway meals, compared with just a quarter (25%) prepared to cancel a streaming subscription. Around three in ten (31%) would give up the gym.
Household bills on the rise
The snapshot of household finances paints a worrying picture. Almost half of households (46%) say their grocery bill has risen since April, while a third have seen council tax increase and three in ten report higher energy bills. Water bills have risen for 27% of households, and broadband for 20%.
The average household spends £568 on rent or mortgage payments, £265 on groceries, £160 on council tax and £120 on gas and electricity each month. Despite the pressure, one area where spending has increased is holidays. One in six households (16%) spent more on trips abroad as summer approached, slightly outweighing the 14% who spent less.
Financial confidence remains fragile
More than a quarter (26%) of households say they are worse off than they were three months ago, while only 15% believe their finances have improved. Looking ahead, just 27% expect to be better off this time next year, compared with 28% who fear they'll be worse off.
The survey also found that 38% of households do not feel confident they could afford a long-haul holiday, while a third lack confidence in their ability to put money into savings. One in seven families with children are not confident they can afford childcare.
Expert comment
Sabrina Hoque, consumer expert at Uswitch.com, said: 'The cost-of-living crisis is putting real pressure on millions of households, but there are a few expenses that Brits won't give up easily. Streaming, music subscriptions and gym memberships have become the "new essentials" to most households, and many prioritise paying for these almost as much as real essentials like energy and water bills.'
'We're keeping our eye on home spending as energy costs and other bills soar, and it's clear that lots of consumers are feeling the strain. If you haven't checked your bills recently, you could be spending more than you need to. Make a comparison online and see if you can save money.'
The findings are based on a poll of 3,000 UK adults carried out by Opinium for Uswitch between July 6 and 9.
