The bare necessities: holidays, posh grub and smartphone apps
Items once considered ‘life's little luxuries' such as regular holidays, posh food at home and smartphone apps are now firmly on the ‘bare necessities' list according to a report by protection specialist LV=.
Despite feeling hard-pressed, Brits say they can't do without life's little luxuries, with each household spending on average £6,195 a year on them - up from £5,850 last year - with over three quarters (78%) saying they are making cutbacks in areas of general household spending to fund them. Overall UK spending on the top ten ‘essential luxuries' reached £158 billion this year - £9 billion more than last year.
Holidays and weekend breaks are the top essential luxury for Brits. UK households spent an average of £3,250 each on them in the last year, with nearly a quarter (23%) 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.
Top ten life's little luxuries Brits are unwilling to cut back if income was cut or squeezed
Essential luxury - Percentage of those not willing to cut back on spending
Holidays / weekend breaks 23%
TV subscriptions 17%
Haircuts / styling by a professional 16%
Meals out in restaurants 16%
Nights out in the pub / bars 15%
Refreshing your wardrobe every quarter 14%
Smartphone apps & regular app updates 13%
Trips to the cinema 13%
Premium foods at home 12%
Gym membership 11%
Even though spending on luxuries is rising year-on-year, 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. With many feeling hard hit financially, this leaves real household essentials at risk, never mind the luxuries.
Mark Jones, LV= Head of Protection, 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.
"However 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."
For further information about LV=, visit lv.com.