2025 UK Spending Trends Report

With the economy performing slower than expected, and higher government borrowing costs, the Office of Budget Responsibility has halved the  UK’s growth forecast to 1%. Billions in public spending cuts are required to get the country back on track. But while the OBR waits to see how Labour’s fiscal policies unfold, what does this mean for consumer spending? Are shoppers holding off from making purchases amid the uncertainty, or are they already feeling the squeeze of the cost of living?

We ran a survey in September 2024, and again in March 2025 to see what impact there’s been on spending behaviours since the start of the new government. This report examines various aspects of personal finance including disposable income, purchase intent, debt, savings, credit usage, tipping, and payment preferences, to provide you with a picture of consumer spending health right now.

Survey sample: The data in this report comes from a nationally representative survey of 1,000 UK consumers aged 18-65. It was conducted on the Attest platform during March 2025.

Trend 1: disposable incomes remain relatively low

The majority of consumers across all age groups have a monthly disposable income of less than £400, but the single largest percentage have between £100 and £199. 

Women represent the segment with the least disposable income: a significantly higher percentage of females (13%) report having less than £100 in disposable income compared to males (8%). Combined, 39% of females have less than £200 in disposable income, compared to only 31% of males.

At the other end of the scale, when looking at those with a disposable income of £1,000 or more per month, 23% of males fall into this category compared with only 16% of females, suggesting a significant gender gap. 

Overall, 36% of Brits have a monthly disposable income of more than £500, but if we look at consumers with a household income of more than £75k this figure balloons to 67%. Further highlighting the disparity between rich and poor, 32% of high earners say they have more than £2,000 left over to spend each month. 

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Trend 2: large portion of disposable income spent on restaurants

Once the bills are paid, UK consumers are likely to spend a fair chunk of money on prepared food – whether that’s going out to eat or enjoying a takeaway at home. Nearly 50% of consumers say they typically spend on eating out each month, while slightly fewer (47%) get takeaways.

Consumers aged 31-49 show a preference for getting a takeaway, while older people are more likely to eat out. Meanwhile, under 30s are equally likely to do both, and over-index for regularly dining out (57% versus 46% of 31-49 year olds and 49% of over 50s). 

Shoppers in the younger age groups are likely to spend a higher amount on restaurants than over 50s, who only typically spend £25-£49. The typical monthly spend on takeaway food is £25-£49 across all age groups, but younger consumers are more likely than their older counterparts to spend in excess of this figure: nearly 18% of under 50s spend between £50-£99 per month versus 13% over 50s. 

In terms of gender differences, males are more likely to spend money on dining out every month (54% versus 45% of females) and typically spend £75-£99 on restaurants – that compares to £50-£74 for women. But there’s little difference when it comes to takeaways. 

High earners significantly over-index for regularly eating at restaurants (76%), and spend more when they do, with typical monthly outlay between £100 and £149. They also spend more on takeaway food (£50-£74). In comparison, consumers with a household income below £30k, spend only £24-£49 on both dining out and takeaways. 

Trend 3: purchase intent for big ticket items has decreased 

Perhaps signposting a lack of confidence in the economy, purchase intent for big ticket tech items has declined under the Labour government. Compared to when we surveyed consumers in September, the percentage of respondents planning to buy a smartphone in the next 12 months has declined from 33% to 30%. 

Likewise, 13% intend to buy a new TV (down from 16%), and 17% plan to buy a computer/tablet (down from 21%). Meanwhile, the percentage of consumers planning to replace their sofa, vehicle or bed/mattress in the next year remains consistent.

Despite this dip in purchase intent, we see that smartphones are the item most likely to be purchased in the short to medium term: a further 35% will buy one in the next 24 months. On the other hand, sofas appear to be the least regularly replaced big ticket item. While 32% of consumers intend to buy a new one in the next two years, 29% say it will be more than five years before they replace theirs. 

Men show significantly higher intent to shop in some categories than women: 44% say they will buy a new vehicle in the next 24 months (versus 33% of women), and 42% a TV (versus 32.5%), while 42% plan to buy a computer (versus 38%).

High income consumers also over-index for plans to buy all items, with the greatest intent to replace their smartphone (75.2%) and vehicle (61%) in the next two years. Meanwhile, consumers in the younger age groups show higher intent than those aged 50 plus to purchase in all categories. 

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Trend 4: High earners prioritise spending on appearance 

Discretionary spending categories like personal grooming and clothing often suffer in an economic downturn, so how are they doing right now? Overall, 51% of consumers say they spend on clothing, shoes and accessories every month, while 46% regularly spend on things like cosmetics, beauty treatments and hairdressers. 

However, these figures represent a decline from six months ago when 56% spent on clothing monthly, and 50% on grooming. And despite making frequent purchases in the categories, spending levels are relatively modest. Consumers spend either less than £25 per month on personal grooming or £25-£49, while typical spend on clothing is also £25-£49. 

High earners are especially likely to spend their disposable income on personal grooming and clothing: just under 70% shop in both categories every month. High earners typically spend between £50-£99 on grooming per month and £50-£149 on clothing, but they significantly over-index for spending more than £200 in both categories (15% on grooming and 26.5% on clothing). 

Shoppers in the younger age groups are more likely than over 50s to make regular clothing and personal care purchases, and they also spend more, over-indexing for higher spend brackets. Female consumers also show a higher tendency to make regular expenditures on their appearance: 51% spend on grooming and 54% on clothing, compared with 40% and 48% of males respectively. And while spending on clothing is consistent between the genders (£25-£49), women typically spend a higher amount on grooming (£25-£49 compared with less than £25 for men). 

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Trend 5: tipping has decreased

If British consumers are feeling the pinch, it appears to be service workers who are suffering the consequences. Habitual tipping of those in service roles has notably declined across the board. 

Since six months ago, tipping of taxi drivers has fallen from 66% to 52%, and hotel cleaners are -11 points less likely to be tipped (only 23% of consumers routinely do it). Meanwhile, 21% tip bar tenders (down from 31%) and 20% tip hotel porters (down from 28%). We also see that nearly 40% of consumers are likely to tip less than the standard 10% when visiting a restaurant. 

While taxi drivers are the most likely to be tipped, they tend to receive lower amounts than other service providers, with £2 being the typical tip. Those in other service roles are likely to receive £5. This amount has not declined – only the number of consumers tipping, so who is still showing their appreciation?

Consumers from high income households over-index for tipping service staff, with 57% routinely tipping taxi drivers and around 40% tipping the other service provider types. And they are more likely to tip above £5. High earners are also significantly more likely to tip over the average at restaurants: more than a quarter tip at least 15% of the bill (although 21% still tip less than the expected 10%). 

On the other hand, the majority of consumers from low income households (48%) tip restaurant servers below 10% and also over-index for not tipping other service providers. Men and women are equally likely to tip and tip similar amounts, but age can affect tipping likelihood.

Consumers aged 18-30 are especially likely to tip bartenders: 30% in comparison to 26% of 31-49-year-olds and 16% of over 50s. But they’re also more likely to tip less than 10% in a restaurant (46%). Meanwhile, consumers aged 50 plus over-index for tipping taxi drivers (56% versus 45% of under 50s).

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Trend 6: UK showing green shoots for financial security 

When it comes to financial security in the UK, the scales are tipped in the right direction, with 46% of consumers feeling financially secure, and a lesser 30.5% feeling financially insecure. Meanwhile, the percentage of consumers at either end of the scale (stating they feel ‘very’ secure or insecure) sits at 10%.

However, there’s one demographic not doing as well as the rest: consumers aged 30-49 are significantly more likely to report financial insecurity. Just over 39% feel insecure compared with around 28% of other age groups, which could be due to their life stage – perhaps supporting young families. 

It’s unsurprising that those with a household income below £30k are also more likely to feel financially unstable (40%), and likewise that those with a household income in excess of £75k are the most likely to report financial security (74%). 

But what might surprise is the marked gender disparity in financial stability, with men generally feeling more financially stable than women (51% versus 41%). Additionally, the percentage of females who feel ‘very financially unstable’ (13%) is nearly double that of males (7%).

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Trend 7: consumers are keeping a tight rein on debt

While the economy might not exactly be booming, one good sign is the low level of personal debt that British consumers have. The majority (52%) don’t have any debt on credit cards, store cards or short term loans. What’s more, 25.5% don’t actually own credit cards, reducing the temptation to spend above their means. 

Of consumers who do have debt, the largest single percentage owe the manageable amount of £100-£499. Overall, 28% of consumers have less than £1,000 in debt and only 5% have more than £5,000. The higher the household income, the more debt you’re likely to have – presumably because credit is easier to obtain. Illustrating this, 32% of consumers with a household income below £30k don’t have credit cards, versus only 14% of those with a household income over £75k.

Young consumers also over-index for not owning credit cards (32%), while over 50s are most likely to have cards with zero balances (34%) and be totally debt-free (63%). It’s the financially-less-secure 30-49-year-old segment that has the highest level of debt: 29% owe more than £1,000 compared with around a quarter of the other age groups. 

Meanwhile, women are somewhat more likely to owe money to credit and store cards than men: while 55% of males are debt-free, only 49% of females are. Men over-index for having credit cards with zero balances (30% versus 24%) suggesting that males are more likely to pay off their balances in full.

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Trend 8: majority have less than £1,000 in savings 

Savings is one area that starkly shows the difference in financial fortunes between different segments. Those with a high household income are significantly more likely than those with a low household income to have savings – and substantial savings at that. 

High earners are most likely to say they have more than £35,000 in savings (36%), while low earners typically have less than £1,000. And low earners are 7x more likely to not have any savings (29% versus 4%).

Consumers aged 31-49 are the worst off for savings: 26% don’t have any, and they’re less likely to have savings over £1,000 (48% versus 55.5% of under 30s and 72% of over 50s). Older Brits, meanwhile, are sitting pretty – only 17% don’t have money put aside, with the single largest percentage having squirreled away more than £35,000 (23%). 

Continuing the trend we’ve already seen, a significantly higher percentage of females have no savings compared to males (24% versus 14.5%). Conversely, males are more likely to have higher amounts of savings across most brackets, including being twice as likely to have savings over £35,000 (24% versus 11%).

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Trend 9: credit cards are the top choice for costly purchases

Most Brits say they would save up to buy something they can’t currently afford (64%), but those aged between 30-49 are the most likely to turn to credit. While 55% would wait and save up, 40% would use some form of credit – that’s compared with 33% of over 50s and 30% under 30s.

Shoppers aged 30-49 are most likely to use a credit card for a purchase outside their current budget (17%), followed by an installment loan (12%) – this age group are the biggest users of short term installment loans. They also over-index for likelihood to tap into their overdraft (6%).  

Overall, we see that credit cards are the most popular form of borrowing for people who can’t or don’t want to save up for purchases. Consumers are least likely to get a loan: less than 2% would apply for a loan, with little distinction made between bank loans or payday loans. Using store cards is also unpopular (2%).

While consumers with a household income below £30k are likely to save up for big purchases (63%), those who do borrow are almost as likely to get an installment loan as they are to use a credit card (11% versus 13%) They also over-index for use of store cards, overdrafts and borrowing from friends and family. Meanwhile, high earners are the biggest users of credit cards (at 24%). And thanks to their creditworthiness, 44% of high earners wouldn’t wait to buy something they can’t afford.

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Trend 10: young shoppers opt for device payments and digital wallets

Consumers aged 18-30 are notably more likely to want to pay with a cellular device when shopping online or in-store. Nearly 36% would choose to use their smartphone or watch to pay in a shop, compared with 21% of 30-49-year-olds and 11% of over 50s. 

Likewise, if making a purchase online, 35% would prefer to use a digital wallet on their device (such as Apple Pay). In comparison, only 18% of those aged 30-49, and 7% of over 50s would choose this payment method, with older shoppers preferring to pay by card.

The popularity of device payments and digital wallets has increased in the last six months, with likelihood to make a contactless device payment rising from 16% to 19%, and preference for digital wallets rising from 12% to 15% – stats that indicate a growing trend. 

Interestingly, women show a stronger preference for in-store device payments compared with men (22% versus 15%), and they’re twice as likely to use digital wallets when making ecommerce purchases (20% versus 10%).

Only around 17% of consumers of all ages have a preference to pay with cash, showing how close the UK is to becoming a cashless society. One segment that does over-index for wanting to use cash is low earners: 23% of those with a household income below £30k want to use cash in comparison to just 12% of high earners.