Disposable income figures are on a financial year basis and have been deflated to 2020/21 prices. Weekly household disposable income figures are from the household disposable income and inequality statistics. Household expenditure figures are on a financial year basis FYE 2002 to FYE 2006, calendar years 2006 to 2013, and financial years FYE 2015 to FYE 2021.Expenditure figures have been deflated to 2021 prices using deflators specific to the classification of individual consumption by purpose (COICOP) category. In comparison, mean income decreased by 0.6% in the year to March 2021, while median household disposable income increased by 2%. This 18% drop in spending exceeds any year-on-year decrease throughout the 2008 economic downturn and subsequent recovery, which averaged only 2%. Average weekly expenditure for all households dropped from £587.90 to £481.50 in the year to March 2021. The combination of these policies changed the nature of how people spent their time and managed their money.Ĭonsumption changes in response to the coronavirus pandemic are reflected in these annual spending estimates. This includes lockdowns, social distancing measures, closure of non-essential services, vaccine rollout, homeworking, and income support measures such as the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme. The collection of data underpinning this bulletin spans April 2020 to March 2021 which coincides with several government regulations and policies implemented in response to the coronavirus (COVID-19) pandemic. Family spending in the UK Average weekly household expenditure dropped by £106 Lower-income households spent a greater proportion of their expenditure on housing, fuel and power and food and non-alcoholic drinks spending in these categories is essential so these households were less able to cut back on their overall spending.Ģ. Those on higher incomes spent a greater proportion of their total expenditure on recreation and culture, restaurants and hotels and transport in the financial year ending 2020, hence their total expenditure decreased more than those on lower incomes. Reductions in spending differed across the income distribution the poorest fifth of households reduced their average weekly expenditure by £34.20 (10%), whereas the richest fifth reduced spending by £204.30 (22%). In the year to March 2021, average weekly expenditure for all households dropped by £106.40, coinciding with the coronavirus (COVID-19) related restrictions on social contact and economic activities this is the largest annual fall observed in the last two decades.ĭecreases were driven by reductions in spending on restaurants and hotels (a weekly decrease of £34.60, or 65%), recreation and culture (£29.30 less, or 39%), and transport (£20.80 less, or 25%).
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