Barclays has said an estimated 35% of people could have around £57 in extra cash next month. The banking giant, which has millions of UK customers, provided its latest insights into consumer spending on Tuesday.
It said that “card spending growth remained flat in December at 0% year on year, significantly lower than the latest CPIH inflation rate of 3.5%”. The report highlighted that reductions in essential spending were “offset by growth in discretionary spending” – or people treating themselves.
Looking to the future, Barclays projected that around 35% of UK adults are participating in Dry January this year. Among them, “40 percent are trying to be healthier, while 22 percent want to reduce their spending on alcohol”, according to the bank’s findings.
Those engaging in Dry January are expected to save an average of £57.70 by February, Barclays suggests. Karen Johnson, head of retail at Barclays, commented: “Consumers demonstrated their ability to carefully manage their money once again in December, finding ways to save while still sprinkling in some cheer, setting aside funds to treats themselves and loved ones over the festive period.
“Brits are also planning to prioritise memorable moments in 2025, with travel emerging as a clear spending priority. Health is also held in high regard; those making New Year’s resolutions will cut back on pub trips, but spend on healthier alternatives to nights out.”
Jack Meaning, the chief UK economist at Barclays, added: “As 2024 closed, consumers remained cautious, in line with muted confidence, elevated uncertainty and high rates of saving. In 2025, we expect household consumption to grow by less than one per cent, ahead of further interest rate cuts from the Bank of England over the course of the year.”