Brits see nights out, holidays and posh grub as ‘bare necessities’
According to insurers LV, items once considered ‘life’s little luxuries’ such as regular holidays, posh food at home and smartphone apps have now firmly moved to the ‘bare necessities’ list.
This comes despite a recent survey highlighting that Brits now feel worse off than they have done in the past three years.
Each household is spending on average £6,195 a year on ‘life’s luxuries’ – up from £5,850 last year – with over three quarters saying they are making cutbacks in areas of general household spending to fund them.
Overall UK spending on the top ten ‘essential luxuries’ reached £158bn this year – £9bn more than last year.
Mark Jones, head of protection at LV=, said: “The luxuries that we refuse to cut back on is a good barometer for how we’re feeling as a nation.
“It is clear these lifestyle luxuries are central to many people’s happiness and it is no surprise people are trying to ‘keep calm and carry on’ even if they feel hard-pressed.”
Holidays and weekend getaways are the top essential luxury for Brits.
UK households spent an average of £3,250 each on getting away from it all in the last year, with nearly a quarter of UK adults stating holidays are a necessity, regardless of their financial situation.
TV subscriptions are similarly viewed by 17% of us, followed by that all essential haircut, with one in six (16%) stating this is the little something they simply couldn’t do without.
Despite the increase on spending on these ‘luxuries’ the research shows that over eight in ten adults (83%) say they do not have any protection in place, to cover their income should they be unable to work due to accident or illness.
LV say that with many households feeling hard hit financially, this leaves real household essentials at greater risk.
Jones added: “People need to consider how they would continue to pay for life’s real essentials should their financial circumstances change.
“With so many people saying they do not have any income protection in place, if they were unable to work due to an accident or illness many could be left struggling to cover the basic day to day essentials, such as their mortgage, food and energy bills. Those considering taking out protection insurance should seek professional financial advice.”