ONS says 20% of usual household spending not possible during lockdown

More than one-fifth of usual household spending has not been possible during the lockdown, Office for National Statistics (ONS) analysis reveals. On the plus side, this may mean some people are saving, or may be able to spend more after lockdown, but it means not so much discretionary spending has gone into the economy.

From ONS:

In the financial year ending March 2019, UK households spent an average of £182 per week on activities that have since been largely prevented by government guidelines (such as travel, holidays and meals out).

This is equivalent to 22% of a usual weekly budget of £831, money that households could be saving, spending in other areas or using to cover any loss of income.

To estimate the potential impact of the coronavirus (COVID-19) on spending, and the extent to which people might be able to cut back, we have categorised household spending from before the pandemic (based on lockdown measures introduced on 23 March 2020). There is more detail on our categories in the Spending classifications section.

Across all households, more than half (53%) of usual spending covers “non-discretionary” items such as food and housing costs. We refer to this as spending on “essentials”.

Younger households, those who are renting and those living in London spend a lot proportionally on essentials and relatively little on goods and services that have been unavailable under lockdown. This could limit their ability to cut back on spending if their income were to fall.

To help households under increased financial pressure, some companies – including mortgage providers and gas, electricity and water suppliers – have offered payment holidays on regular bills.

We estimate that 39% of household spending on essentials could be subject to a payment holiday, equivalent to £173 per week.

More than one-fifth of usual household spending has been prevented by the lockdown

Renting households spend 61% of their usual weekly budget on essentials, compared with 52% for households who own their home outright or with a mortgage.

This is largely driven by housing costs, which account for 28% of budgets for renting households and 21% for homeowners.

 

Meanwhile, in households where the reference person is under 30 years old, 58% of the weekly budget goes on essentials and 19% on goods and services that have been unavailable during lockdown.

On the other hand, older households where the reference person is aged between 65 and 74 years spend far less of their budget on essentials (43%) and considerably more (29%) on activities that have been prevented.

 

 

Spending by region:

 

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