41% of people feeling less financially secure heading into 2024

KPMG UK Consumer Pulse survey asks 3000 consumers about 2024 intention

KPMG UK Consumer Pulse survey asks 3000 consumers about 2024 intention

Headline findings of KPMG’s Consumer Pulse survey about 2024 intention:
  • 41% of consumers say they’re feeling less financially secure heading into 2024, than at the start of 2023.
  • 22% say they feel more secure than a year ago, 35% feel no more or no less secure.
  • 58% of consumers say they will cut non-essential spend in 2024.  Only 8% say they’ll spend more than in 2023.
  • Eating out is the most common non-essential cutback category for 2024.
  • Nearly half of consumers say they’ll buy more own brand or value goods in 2024, also more promotional or discount items. 
  • 40% say they will use retailer loyalty schemes more in 2024 – doubling from 18% that said so when 2023 began.
  • Holidaying is the most common (34%) planned use of savings in 2024.
  • One in ten consumers say they have no savings, a fifth say they have the equivalent of less than a month’s wage.

Four in 10 consumers are heading into 2024 saying they feel less financially secure than when 2023 began, according to new research from KPMG UK.

Assessing confidence for 2024, KPMG’s latest Consumer Pulse survey of 3000 UK consumers shows those feeling worse about their financial security outnumber those feeling more secure by almost two to one (41% vs 22%).

The findings also showed that two-thirds of consumers say they will have to cut their non-essential spending in 2024, with eating out (78%), takeaways (70%) and clothing (57%) the top three of a wide range of cost cutting targets.

This is the same top three as when KPMG polled consumers on their 2023 spending intention 12 months ago.  But the numbers of consumers saying they will target these categories for cutbacks in 2024 has risen sharply compared to a year ago, when eating out was selected by 46%, takeaways by 42%, and clothing by 42%.

Compared to a year ago, the 2024 survey also shows clear jumps in the number of people saying that they will buy more own brand and value produce next year (46% vs 31%), and more promotional and discount produce (46% vs 30%).

Intention to shop at lower cost stores more in the year ahead has also risen (40% vs 27%), as has using retailer loyalty schemes more to unlock lower prices – with 40% of consumers saying they will do more of this in 2024, compared to 18% saying so twelve months ago.

Commenting on the findings, Linda Ellett, UK Head of Consumer, Retail and Leisure for KPMG, said: “As was the case in 2023, large numbers of consumers tell us that they are going to combine stopping, reducing, and switching the things they buy to save money in 2024. 

“As more households are exposed to higher mortgage rates or rent, the number of people needing to cut non-essential costs increases.  Our survey also indicates that those consumers who have already adapted their shopping behaviour to lower their costs during 2023 are going to continue these steps during the next twelve months. 

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“Around half of consumers we survey say they will buy more value, own brand, promotional, or discount produce.  Forty percent of consumers also intend to use retailer loyalty schemes more in 2024

“Price is way out ahead as the main purchasing driver and retailers are going to be expected to continue to incentivise to compete.  With margins under prolonged pressure and interest rates remaining elevated, this consumer and economic landscape will continue to challenge the structure of some businesses.”

Consumers are also aiming, where possible, to switch goods and services to save further money.  The top six categories for consumer switches are:

  • Eating out: 27%                (highest among 25-34 year olds)
  • Clothing: 27%                    (highest among 18-24 year olds)
  • Frozen food: 25%             (highest among 45-54 year olds)
  • Fresh food: 21%               (highest among 25-34 year olds)
  • Takeaways: 21%               (highest among 18-24 year olds)
  • Insurance cover: 18%      (highest amongst those aged 65+)

Additionally, 10-15% of consumers are targeting better deals on their broadband, mobile phone, satellite/cable TV, music/TV streaming, respectively.

The intention to use savings to make big ticket purchases in 2024 is subdued, with holidaying the most popular option – for just over a third of consumers with savings.  Holiday demand using savings (34%) showed slight growth compared to when KPMG surveyed consumers when 2023 began (30%).  But the intention to use savings over the coming year for other big ticket purchases is lower across all other categories, when compared to 2023’s outlook.

A fifth of people with savings said they will use them to pay monthly essential bills, while one in 10 said their savings will be used to pay down their mortgage.  A quarter said they won’t use their savings at all next year.

On average, the 3000 consumers had accessible savings levels equivalent to five months of their monthly income.  But a fifth of consumers had savings at a level less than one month’s wage available to them.  One in 10 said they have no savings at all – rising to nearly a third among lower income groups.




For further information:

Steven Reilly-Hii, Media Relations Manager, KPMG LLP, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.


Full polling questions and answers:

3000 UK Consumers from across UK regions, and age and income groups were surveyed online by One Poll during December 1 to 11.  They consisted of:

  • 30% homeowner, mortgaged.
  • 31% homeowner, no mortgage.
  • 33% renter.
  • 6% live with parents.
  • 14% with children.  13% with pets.

Heading into 2024, how financially secure do you feel compared to when 2023 began?

  • 41%: Less secure.
  • 35%: No more or no less secure.
  • 22%: More secure.
  • 2%: Not sure.                                  

How will your essential costs (e.g., food, energy, fuel, mortgage/rent) likely affect the rest of your spending in 2024, compared to 2023?

  • 58%: I will have to cut back my non-essential spending
  • 29%: My non-essential spending levels will be able to remain the same
  • 8%: I will be able to increase my non-essential spending
  • 5%: Not sure

To 1726 consumers that said they will cut non-essential spend: Which of the following non-essential spends will you cut back on in 2024? (Select all that apply)

  • 78%: Eating out
  • 70%: Takeaway
  • 57%: Clothing
  • 50%: Leisure Travel / Holiday(s)
  • 42%: Experiences
  •  41%: Home improvements
  • 39%: Beauty products and services
  • 37%: Food and drink shopping
  • 32%: TV or music streaming services
  • 32%: Technology
  • 26%: Meal delivery kits
  • 22%: Fitness and exercise
  • 20%: Non-commuting vehicle/transport use
  • 12%: Children’s clothing and toys
  • 9%: Pet products
  • 1% None of the above

To 229 consumers that said they will increase non-essential spend: Which of the following non-essential spends will you increase your spending on in 2024? (Select all that apply)

  • 53%: Leisure Travel / Holiday(s)
  • 45%: Eating out
  • 44%: Clothing
  • 42%: Food and drink shopping
  • 41%: Home improvements
  • 29%: Experiences
  •  21%: Takeaway
  • 21%: Beauty products and services
  • 21%: Technology
  • 21%: Fitness and exercise
  • 20%: TV or music streaming services
  • 16%: Children’s clothing and toys
  • 16%: Pet products
  • 12%: Non-commuting vehicle/transport use
  • 11%: Meal delivery kits
  • 3%: None of the above

Which, if any, of the following will you do more of when shopping in 2024, compared to 2023?

  • 46%: Buying own brand / value products
  • 46%: Buying promotional or discounted items
  • 44%: Buying fewer items
  • 41%: Buying lower price branded produce
  • 40%: Making use of retailer loyalty schemes to get lower prices
  • 40%: Shopping at less expensive retailers
  • 35%: Shopping at multiple stores to find products at their lowest cost
  • 28%: Buying pre-owned items
  • 25%: Cancelling monthly subscriptions
  • 16%: Choosing lower cost monthly subscriptions
  • 16%: Switch products due to quantity shrinking but price remaining the same (shrinkflation)
  • 12%: Use credit card(s) when making purchases
  • 12%: Use buy now pay later when making purchases
  • 8%: Buying products or services due to their sustainable or ethical credentials
  • 8%: Buying premium/finest range instead of eating out
  • None of the above: 10%

Which, if any, of the following categories are you most likely to switch brands in 2024 to save money? [Select up to five]

  • 27%: Eating out
  • 27%: Clothing
  • 25%: Frozen food
  • 21%: Fresh produce (fruit, vegetables, meat, bread, dairy)
  • 21%: Takeaways
  • 18%: Insurance cover
  • 16%: Beauty products & services
  • 15%: Broadband provider
  • 15%: Alcohol
  • 15%: Mobile phone contract
  • 14%: Non-perishables
  • 13%: Travel/Holiday
  • 12%: TV & music streaming services
  • 10%: Satellite or cable TV provider
  • 9%: Home improvements
  • 7%: Technology
  • 6%: Pet products
  • 5%: Fitness & exercise
  • 5%: Children’s clothes & toys
  • 4%: Meal delivery kits
  • 4%: Vehicle
  • 1%: Other
  • None of the above: 15%

How do you think you will purchase the majority of your non-grocery goods in 2024? (Select up to three)

  • 45%: In-store
  • 40%: Using debit card
  • 22%: Using credit card
  • 18%: Home delivery
  • 18%: Using cash
  • 17%: On retailer websites
  • 8%: On retailer apps
  • 8%: Click and collect
  • 8%: Using mobile phone payment app
  • 1%: Via affiliate links on social media
  • Don’t know / nothing in particular: 6%

How much money do you have available to you in savings, equivalent to your monthly income? (Select best match)

  • 22%: Less than a month’s income
  • 19%: 1-3 months’ income
  • 18%: Over 12 months’ income
  • 12%: 3-6 months’ income
  • 10%: N/A – I don’t have any savings
  • 8%: 6-12 month’s income
  • Prefer not to say: 10%

To 2398 consumers: Which, if any, of the followings do you plan on spending savings this year on? (Select all that apply)

  • 34%: Holiday(s)
  • 24%: N/A - I don’t plan to spend any of my savings in 2024
  • 21%: Home improvements
  • 19%: Paying monthly household essential costs (e.g., food, energy, fuel, mortgage/rent
  • 9%: Home appliances
  • 8%: Moving home
  • 8%: Technology
  • 7%: A petrol or diesel vehicle
  • 7%: Home electronics
  • 6%: Paying down the mortgage on your existing home
  • 3%: A battery electric vehicle
  • Not sure: 9%

What will be your top considerations when purchasing goods and services in 2024? (Select up to three)

  • 83%: Price
  • 60%: Quality
  • 27%: Convenience
  • 24%: Loyalty benefits
  • 15%: Environmental sustainability
  • 12%: Customer experience
  • 6%: Data privacy
  • 4%: Other ethical considerations
  • 1%: Other
  • Don’t know: 4%


About KPMG UK:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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