Nearly two in five Brits have cut back or cancelled subscription services to help manage their finances amid the ongoing cost-of-living crisis.
The findings in a new survey by Opinium, commissioned by prepaid payment firm Recharge, show that 21.9 million UK adults are making adjustments to their spending, with high earners and younger consumers leading the way.
The survey, which sampled 2,000 UK adults, indicates that individuals earning between £90,000 and £100,000 per year are 37 per cent more likely to reduce their subscription spending than those earning under £90,000 (56 per cent vs 41 per cent). The data also shows that higher earners are more inclined to cut spending on beauty and grooming subscriptions, while lower earners focus on cutting streaming services.
Age is another significant factor in the shift in spending habits. Half (50 per cent) of Brits under 55 reported reducing or cancelling subscriptions, compared to just 27 per cent of those over 55. Despite this, the 18-34 age group still spends the most on subscriptions, with an average monthly spend of £54.90 even after reductions, compared to £37 for those aged 35-54 and £42 for those over 55.
Interestingly, younger consumers are also more likely to use prepaid cards for managing their budgets, with 42 per cent of 18-34 year olds using these tools compared to just nine per cent of over 55s. Prepaid card users, according to the survey, are significantly more likely to cut subscriptions (54 per cent) compared to non-users (37 per cent).
Different approaches
Günther Vogelpoel, CEO of Recharge, said: “The cost of living crisis has changed spending habits, driving Brits to cut back or cancel their spending on subscription services. Our research highlights the difference in approaches to spend management between demographics, whilst also pointing to the importance of budgeting tools.
“Prepaid payment products are just one of many ways consumers are limiting their spending while retaining access to certain luxuries. Recharge is all about putting the consumer in charge and providing them with the options to spend their way whilst continuing to meet their evolving needs.”
The research was conducted by Opinion Research on behalf of Recharge, among a nationally representative sample of 2,000 UK adults.
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