People across the UK are seeing an increase in disposable income, spending less on bills and more on non-essential items compared to the previous year, as per the latest Household Money Index report from MoneySuperMarket. During September 2024, the average person has £684.70 remaining each month after covering essential expenses, which is £60.70 more than the same period last year.
The report, based on data from 10,000 survey respondents, indicates a decrease in spending on 20 out of 31 measured bills and expenditures over the past year. Meanwhile, expenditure on non-essential goods and services has significantly risen. Expenditure on home repairs surged by 40%, while subscription services such as TV and music streaming increased by 41%. Gym memberships saw a substantial growth from under £16 per month to £51. News subscriptions also experienced a notable rise from an average of £11 per month in September 2023 to £51 currently, marking a 353% increase.
On average, individuals spent £49.06 per day on bills and outgoings over the last year, albeit varying across different regions in the UK. Southampton emerged as the city where disposable income stretches furthest, with residents spending 60% of their income after tax on expenses, below the national average of 69%. In contrast, people in Liverpool allocated 75% of their income towards bills and fixed outgoings. London and Manchester remained the most expensive places to reside, with similar levels of disposable income despite contrasting expenditure levels.
Peter Duffy, CEO at MONY Group, noted the increased disposable income observed in the survey and highlighted trends of redirecting savings towards home improvements, subscription services, and gym memberships. MoneySuperMarket’s SuperSaveClub has also seen success, with over 500,000 members collectively saving £122 million since the previous year.
The annual Household Money Index offers valuable insights into UK spending habits, indicating a positive trend in disposable income and prudent savings practices amid changing consumer preferences.