Brits choose to spend on rollercoasters and beaches over new clothes or DIY

• TSB analyses over 425 million debit card transactions for new How Britain Spends report
• Brits cut spending on their homes and clothing, but splash out on holidays and entertainment
• Consumer poll: Over half (57%) of Brits feeling more confident about personal finances over next six months.

TSB’s How Britain Spends Report¹ finds that consumers are cutting back on DIY and household good spend (-15.5%), but splashing out on one-off treats, such as holidays and days out – with spend in the travel sector up 9.2%.

The report, a six-monthly analysis of more than 425 million TSB debit card transactions shows customers spent £9.5 billion in the first half of the year. While this is up 1.7% compared to the same period in 2023, it is lower than the latest CPI (Consumer Prices Index) inflation rate of 2%.

Consumer confidence over next six months

The growth in spending coincides with polling², showing that over half of Brits (57%) are feeling confident³ about their personal finances as they look ahead to the next six months.

A quarter (25%) believe they will face greater financial challenges. UK consumers surveyed are likely to continue to take a cautious approach to spending with over two fifths (42%) not planning to spend more in the second half of the year.

Key highlights from TSB’s How Britain Spends Report:

• Holidays – There was a 9.2% increase in spending with airline and travel companies.
• Household – As Brits try to manage their household costs, many are shelving renovations or home improvement projects with overall spend for DIY, electrical and furniture items falling by 15.5%
• Entertainment - Spending on entertainment including items such as concert tickets, theme parks and going to the cinema and theatre was up 5.1%. Many are clearly up for a rollercoaster year with spending on amusement parks increasing by 20.2%.
• Pubs – Brits appear to be spending more time in the pub with spending increasing by 7.2%.  The increase appears to be driven by spending over Easter weekend and the May Bank Holidays and not The Euros as spending in pubs fell by 2.5% in June compared to May. 
• Clothing – Household spend on clothing fell by 4%.
• Groceries – As food price growth has slowed supermarket spending has risen by 3.4%.

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

“While many household budgets are under pressure, consumers are remaining optimistic – with many prioritising spend on treats such as holidays and entertainment.

“Consumers are feeling more confident about their finances, and with a potential interest rate cut later in August, we may see increased spending levels in the second half of the year.”

Notes to editors

¹The How Britian Spends Report is a new report from TSB analysing more than 425 million debit card transactions that were carried out between 1st January - 30th June 2024. It is compared to the period 1st January 2023 –30th June 2023.

²The polling was conducted by Censuswide among a sample of 2000 nationally representative consumers in the UK (aged 16+). The data was collected between 19-24 June, 2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles. Censuswide is also a member of the British Polling Council.

³ ‘Somewhat confident’ and ‘Very confident’ answers combined.

• TSB’s Spend and Save Accounts come with a range of valuable features to help our customers make the most of their money. 
  • Access to offers and discounts across a range of leading retailers and brands in the new My TSB Rewards Portal.
  • On top of the switching and cashback offers, TSB’s Spend & Save and Spend & Save Plus accounts come with instant access savings called Savings Pots. Customers can earn 2.92% interest AER variable.
  • TSB also has its Monthly Saver account. Customers can earn 6.00% Gross/AER, fixed for 12 months.
  • Auto Balancer – allows customers to choose a minimum balance limit on their account. If the balance falls below that level, it will automatically move money from a chosen Savings Pot to top it up.
  • ‘Save the Pennies’ – customers can arrange to have debit card transactions rounded up to the nearest pound, so the ‘change’ goes straight into a Savings Pot.
  • In addition, Spend & Save Plus offers customers:
  • No TSB charges for using their Spend & Save Plus debit card abroad.
  • £100 interest-free Arranged Overdraft for short-term borrowing, subject to application and approval. Overdrafts are repayable on demand.
• TSB customers can start planning their next holiday on the My TSB Rewards Portal  where a range of discounts and offers are currently available. Examples include up to 6% off holiday bookings with lastminute.com, savings up to 35% on Eurocamp holidays and up to 25% off an overnight stay at Alton Towers Resort.

Spending Tables