The Office for National Statistics (ONS) has published research on the impact of COVID on household spending in the year to March 2021 (i.e. covering the lockdown periods). The key findings from the research are:
- Households reduced their spending by an average of £109.10 (19%) a week
- Higher income households, who tended to spend more on travel, and were more likely to be able to work from home, saw a larger drop in spending than low income households.
- Reduced spending on restaurants and hotels, recreation and culture and transport contributed most to the decline in overall spending for all income groups.
- Spending on holidays abroad accounted for half of spending falls in the highest income households
- 42% of workers on lower incomes reporting a decrease in earnings, compared with 31% for those on the highest incomes.