NEWS21 June 2023

Rise in people unable to live on current salaries, finds IPA

Cost of Living News Trends UK

UK – Four in 10 people in the UK are not coping on their current salaries during the current cost-of-living crisis, according to data from the Institute of Practitioners in Advertising’s (IPA’s) TouchPoints survey.

Money hiding under umbrella

The survey also found that the proportion of consumers not coping on their current salary ( 37.6%) was up 15% from 2020 and 22% from 2021, with the figure rising among the lowest income and most disadvantaged groups ( 60%).

The data is based on a nationally representative survey carried out on more than 3,000 British adults aged 15 or over between January and March 2023.

The research found that 5.9% of consumers are consolidating their debts and/or remortgaging, a 34% increase since pre-lockdown 2020 ( 4.4%) and a 168% rise over the past six months ( 2.2%).

Supermarkets were the most popular shopping outlets at 63.3%, but had seen a 7% fall from pre-lockdown 2020, and the weekly reach of the high street dropped 17% in this same time frame from 40.5% to 33.6%.

Shopping centre reach fell 8% from 21% to 19.3% and out-of-town retail parks dropped 3% from 14.7% to 14.2%, while the reach of local shops remained unchanged at 36.5%.

Online shopping saw a 3% rise since pre-lockdown 2020, from 49.4% to 50.7%.

Three-fifths of consumers are looking for the lowest possible prices when they go shopping, up 11% from pre-lockdown 2020, and 41.6% are actively looking for money-off vouchers, up 31% on 2020.

The number of people planning to move out of their parents’ home in the next 12 months has dropped by 29% to a total 2.9%, while the number of people planning to move jobs in the next 12 months has fallen 31%, from 11.9% to 7.4%.

Josh Krichefski, president at the IPA and chief executive, Europe, Middle East and Africa and UK at GroupM, said: “We can see from the latest TouchPoints data the significant impact of the cost-of-living crisis on consumers’ lives.

“As financial burdens increase, halting both our short and longer-terms plans, it is imperative that brands and their agencies are mindful of these challenges and work to understand the role we can play in helping to add value to consumers’ lives at this tough time.”

Belinda Beeftink, research director at the IPA, said: “The latest TouchPoints data highlights the struggles some people are facing with the cost-of-living crisis.

“This is impacting their daily lives not only in terms of what they can afford, but what they do, when they go out, when they socialise and crucially for our industry, how they consume different media channels.”

@RESEARCH LIVE

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