Consumers refuse to crumble under the crunch

People are cutting out luxuries and watching the pennies as the UK continues to be submerged by the global economic crisis, according to research from uSwitch.com's Consumer Opinion Panel. This is already showing dividends for thrifty consumers who have saved £2.7 billion this year by just making small lifestyle changes. However, it seems these consumer savings are subject to cause and effect as many businesses report losses and, in some cases, closures.

The survey has revealed that 12 million UK adults (27%) have been looking for a better paid job since the onslaught of the Credit Crunch to help improve their financial situation. This could be problematic as unemployment figures have rocketed by an average of 888 a day in the last three months alone. At the same time almost 1 in 5 people (19%) are working overtime to earn extra money whilst 16% of people are relying on their partner to work overtime.

Silver Traders

Over half of UK adults (54%) say they have resorted to selling possessions on eBay to secure extra finances, this is particularly popular with the over 55's (33%). At the start of this year alone, eBay reported that sellers in the UK generated an extra £2 billion a year for the UK economy by selling items online. Similarly, a further 34% of people are taking part in car boot sales to sell unwanted possessions and 1 in 10 entrepreneurial people in the UK have also turned their hobbies into a means of making money.

Staying in

Home really is where the heart is with 36 million people (77%) no longer eating out regularly. This in itself is a dramatic turn around for consumers since the start of 2007 when 30% of people claimed to eat out at least once a week. Similarly, 20 million people (43%) have either cut down or completely stopped taking regular trips to the pub. This has clearly hurt the industry as 910 pubs ceased trading in the first six months of 2008, a figure expected to rise to 2000 by the end of the year. Not only have people reduced eating out, 10 million UK adults (21%) have given up on the gym this year. This is echoed by the recent financial statement from JJB sports, reporting a record drop in sales of £9.7 million before tax for the first half of 2008.

Return of the lunch box

The lunch box has made a comeback with almost one in four people (23%) now taking their own lunches into work to save money. This is much to Sainsbury's delight as they recently reported an increase of 36% in lunchbox sales and sandwich bags by 25%.

Charity really does begin at home

The survey also revealed that charities could be hit hard by the Credit Crunch, as more than a quarter of people (27%) say they have cut back on or stopped charity donations. This follows the recent announcement by the Charities Aid Foundation (and the Association of Chief Executives of the Voluntary Sector) that individual donations have plunged by 30% this year, while 88% expect their income to fall further going forward.

Abandoned holidays

It seems we're not all going on a summer holiday. Almost half of UK adults have rearranged their holiday plans because of the current economic crisis and 18% have cancelled plans altogether. 7% said they abandoned holidays abroad for UK destinations, 9% took smaller UK breaks instead of a big holiday whilst 5% opted for camping. More than four in ten people (42%) have also cut back on weekend breaks away.

Supermarket shopping

Over half of UK adults (51%) have switched to a cheaper supermarket to save money on their weekly shopping bill. This is clearly reflected in Tesco's profit announcement with an increase of £146 million in the first half of 2008. This trend is not so great for Marks and Spencer as they have just announced a 5.9% fall in food sales this year. More than one in four people (26%) have also started to use money off vouchers while 25% have switched to supermarket own brand products.

Every cloud has a silver lining

However, every cloud has a silver lining, 813,000 adults say they have given up or cut down on buying cigarettes this year to save money. If all of these people actually kicked the habit they would save £1,750 each a year - a global saving of £1.4 billion.

Savings

Half of UK adults (50%) say these steps have saved them up to £50 a month, whilst 34% say they have saved between £50 - £100, this equates to a global savings figure by UK adults of £2.7 billion.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "There is no doubt that 2008 has been one of the toughest years that consumers have witnessed in a long time, and it looks set to get tougher. The global crisis has had an impact on interest rates, with fewer good mortgage offers on the market than ever before. At the same time consumers are finding it harder than ever to get their next credit or loan as providers lend with extreme caution."

"However, as this survey highlights, consumers are rising to the challenge by tightening their purse strings as every penny really does count. Watching where your money goes has enabled consumers to save almost £2.7 billion this year alone. This is a phenomenal amount of money, and highlights what can be done when consumers switch products to save money - be it financial or supermarket brands. Consumers must continue to fight back if they are to keep their head above water at what is still a volatile time."