Utility costs driving reduction in non-essential spending

As part of this, half of all consumers say they face mobile phone plan increases and broadband increases, respectively, while third say they’re buying from cheaper retailers with 37% saying they have been purchasing more own brand and value produce. Additionally, one in 10 say they’re using credit more so far in 2023.  

The figures come as part of KPMG’s Consumer Pulse survey, which also found half of consumers will spend less on non-essentials if they’re not eligible for any energy bills support, while a third said they’ll use savings to help with energy costs if they’re not eligible for this support.  

KPMG’s UK head of consumer markets, retail and leisure Linda Ellett said: “With energy, mobile, and broadband costs set to rise for many households from April, a number of consumers will likely have to further cut back their discretionary spending.   

“Already in 2023, over half of the consumers that we spoke with have reduced their non-essential spend.  Buying behaviour also continues to change as shoppers look to lower costs – including switching to discounters, buying more own brand and value produce, and searching out promotional prices.”