Barclays has published some alarming data
Barclays has shared a new alert with its millions of customers, as the cost of living squeeze continues to bite ahead of Christmas. The bank’s latest Consumer Spend report reveals that one in four households (23 %) now regularly spend over £100 on food and drink, while just 16 % manage to cap weekly spending at £30 or less.
The average household is estimated to be shelling out £74.70 per week, up significantly from last year. The research also highlights growing pressures on festive favourites. Two thirds of adults (65 %) say seasonal treats like biscuit tins and chocolate tubs have shrunk in size – a phenomenon known as shrinkflation.
Over half (53 %) of shoppers now say chocolate products are lower quality than they used to be, and 52 % say they would avoid snacks made with cheaper coatings. It follows revelations that family favourites such as Penguin and Club biscuits – both made by McVitie’s owner Pladis – can no longer legally be classed as chocolate because they use a substitute coating rather than real milk chocolate.
Meanwhile, tubs of Quality Street, Celebrations and Roses, which are always popular at Christmas, have all shrunk over recent years. More than six in ten (61%) have also spotted skimpflation – where cheaper ingredients or recipes are used but prices stay unchanged.
Supermarkets have reduced the quantities of expensive ingredients, such as meat, in ready meals. And everything from fish fingers to soups are reported to have seen recipe changes that have reduced the quality and value.
The Barclays Consumer Spend report paints a broader picture of caution among shoppers ahead of the Autumn Budget. All seven measures of consumer confidence tracked by Barclays fell for the first time since August 2022.
Confidence in household finances plummeted from 74 % to 63 %, while confidence in job security dropped to 44 % -its lowest level since 2023. Around two fifths of consumers are adjusting finances ahead of the Budget, with 37 % making cutbacks, 33 % postponing discretionary purchases, and 30 % building up savings.
Despite the squeeze, some areas are seeing growth: health & beauty spending rose 7.6 %, garden centres climbed 7.6 %, and furniture stores were up 5.3 %, reflecting a focus on wellbeing and home comforts.
As the festive season looms, 26 % of consumers are holding back money to spend during Black Friday and Christmas sales.
Julien Lafargue, Chief Market Strategist at Barclays, said: “Consumers and businesses alike appear to have adopted a ‘wait and see’ approach ahead of the Autumn Budget. While this is generating some short‑term headwinds, it could position the UK economy for a rebound once the uncertainty lifts.”
Karen Johnson, Barclays’ Head of Retail, said: “While confidence declined in October, people are still willing to invest in the areas that matter most to them. With Black Friday and Christmas on the horizon, we expect spending patterns to shift again as shoppers seek out value and seasonal offers.”
