NEW DATA published this morning shows that four out of five households has cut their spending as a result of the economic downturn – while one in five has delayed or missed paying bills in order to pay for basic goods and services.
The CSO’s National Household Survey, published this morning, showed that in the second quarter of last year, over half of households had spent less money on going out – while half of households had also cut spending on groceries.
The study showed that younger people were far more likely to cut back on their grocery spending: 64 per cent of households, where the main earner was under 35, had cut spending, while this rate fell to 42 per cent where the earner was 55 or older.
Two-thirds of households had cut their spending on clothing and footwear, while 15 per cent of households had cut their spending on health insurance – which, when combined with rising premiums, indicates that many have been forced to give up their cover.
One in ten homes had missed or delayed loan repayments, while a similar number had put off paying a credit card bill.
The study also found that 45 per cent of households had dipped into their savings over the last two years, with some of those homes completely emptying their ‘rainy day’ funds.
One in ten homes, meanwhile, had borrowed cash from family or friends to pay for basic goods and services in the two years prior to the survey being carried out.
Families were those hardest hit and most likely to cut spending across the board: 36 per cent of homes with two adults and three dependant children had cut spending in five or more areas.