Millions of UK households are clinging to ‘new essentials’
Brits are clinging to Netflix, Spotify and gym memberships even as the cost of living continues to bite. New research suggest millions are refusing to cut the subscriptions despite a fresh wave of rising household bills.
TV streaming, music services and fitness memberships have become the country’s new “essentials” – with households more willing to ditch takeaways and restaurant meals than cancel monthly direct debits for entertainment and exercise. The findings come as almost three in five households (59%) say at least one of their regular bills has increased over the past three months, piling further pressure on stretched family budgets.
According to comparison website Uswitch, two-thirds (66%) of households 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.
The research suggests these monthly subscriptions are now viewed almost as essential as paying the utility bills.
Families are almost 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.
The latest 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.
Where household bills have risen
Expense Households paying more
- Groceries 46%
- Council tax 34%
- Energy bills 30%
- Water bills 27%
- Broadband 20%
Source: Uswitch. Figures show the proportion of households who say they are paying more in the past three months compared to previous three
The average household is now spending £1,535 every month on essential costs, including £568 on rent or mortgage payments, £265 on groceries, £160 on council tax and £120 on gas and electricity. Despite the pressure, one area where spending has actually increased is holidays. One in six households (16%) spent more on trips abroad as summer approached, slightly outweighing the 14% who spent less.
Confidence in household finances also remains fragile. More than a quarter (26%) 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.
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.
