Brits beat winter blues with spend on travel and entertainment – as almost two thirds of households feel confident about their finances

• Report finds increased spending across several sectors with pubs, bakeries and travel all up, however spend is below inflation
• Brits make cutbacks on household purchases, clothing and automative fuel
•  Poll shows marginal upticks in household finances and slightly reduced concerns

TSB’s How Britain Spends¹ report finds that UK households beat the January blues with increased spending on retail, entertainment, travel and in pubs – as almost two thirds² (62%) of Brits feel confident about their finances over the next six months*.

The report, an analysis of over 130 million TSB debit card transactions shows customers spent over £1.8 billion in January 2025. While this is up 1.5 percent, year-on-year the figures are lower than the rate of inflation.

TSB found a significant increase in spend across Retail (+15%), followed by Entertainment (+7%), Travel (+5%) and Food & Drink (+2%); as Brits made cutbacks on Clothing (-3%) Household Spend (-2%), and Automative Fuel (-4%).

In addition, polling of 4,000 Brits³ suggests a slightly improving picture on the UK’s finances – with marginal upticks in households feeling comfortable about their finances (44% in 2024 vs 47% in 2025)**, and a reduced impact from the cost of living on struggling households (74% vs 61%).

Key highlights from TSB’s How Britain Spends Report:

• Some Brits may have shunned dry January with a 10% increase in spending in pubs
• Households spent 7% more with airlines – planning weekend breaks and summer sun
• The 15% increase in retail was largely driven by a 35% increase in ‘Mixed Business’ - the likes of Amazon, Home Bargains, Poundland, and John Lewis.
• Brits also spent 13% more on amusement parks 
• Bakeries saw a 10 percent uptick
• And the taxi industry received a boost – with an 18% increase in spend
•   Overall household spend was down 2%, with furniture stores seeing the biggest cutbacks (-5%).

Consumer polling – looking ahead six months

TSB’s customer data coincides with polling that shows over three fifths (62%) of households say they are confident about their finances over the next six months.

Of those who said they were not confident (35%)*** almost two thirds (61%) said that the cost of living was the main factor – although this has reduced by 13 percent since the last quarter (down from 74%).

Almost half (47%) said their finances were comfortable – up 3% since Q4. Three in 10 (30%) said they expect greater challenges, although this has reduced by 2%.

Delphine Emenyonu, Head of Loans and Credit Cards at TSB said:

“Consumers started the new year with increased spending across entertainment, travel – and in pubs.

“We’re also seeing a slight uptick in household finances – with Brits reporting improved money confidence as they look to the six months ahead.”

Notes to editors

1. TSB’s How Britain Spends report analyses TSB customer data, and includes consumer polling. This iteration compares January 2024 vs January 2025
2. On behalf of TSB, Censuswide polled 4,000 people on 03.10.24 - 07.10.24 ,the research was conducted by Censuswide, among a sample of 2000 UK respondents (nat rep). The data was collected between 31.01.2025 - 03.02.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council
3. The research was conducted by Censuswide, among a sample of 4000 UK respondents (nat rep). The data was collected between 03.10.2024 - 03.02.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council. 

Censuswide notes:

* ‘Very confident’ and ‘somewhat confident’ responses combined

** ‘Very comfortable’ and ‘somewhat comfortable’ responses combined

*** ’Not at all confident’ and ‘not particularly confident’ responses combined