NEWS14 February 2023

Disposable income down for a majority of the British public

Cost of Living FMCG News Retail Trends UK

UK – Two-thirds of British people ( 67%) have reported that their disposable income has decreased ‘a lot’ in the past 12 months, according to data released by YouGov.

large receipt flowing out of coin purse

The ‘Financial Outlook 2023’ report from YouGov Profiles also found that 67% of British consumers expect their disposable income to decrease ‘a lot’ in the coming year, compared with 66% of respondents in Germany, 64% in France and 52% in the US.

The study also found that people in European markets have a more pessimistic view on future disposable income compared with those in the US, Mexico and Asia-Pacific.

Of the 18 countries included in the study, Britain’s spending power has been most impacted globally in the last 12 months, with the highest negative impact score at -52%, according to YouGov’s Discretionary Spend Index (DSI).

The report is based on online research with 19,500 respondents across 18 countries and includes data from YouGov Profiles & YouGov BrandIndex. The Great Britain sample size was 2,023 and the fieldwork was carried out between 11th-25th October 2022. 

According to a separate report from NielsenIQ, also published today ( 14th February), 56% of UK consumers say that they are in a ‘worse financial position’ this year compared with a year ago, while 84% of respondents ‘already feel that they are living in a recession’.

The NielsenIQ survey found that 74% of global respondents reported that increased costs of living are to blame for their recent financial struggles, with this figure rising to 83% among UK respondents.

NielsenIQ surveyed a total of 15,698 online respondents globally, across 23 countries. The survey of UK consumers took place between 12th-23rd December 2022 with a sample size of 600.