British households have reined in spending on gyms, streaming subscriptions and gaming over the past year, as the cost-of-living crisis continues to reshape consumer habits.
New data from MoneySuperMarket’s Household Money Index, which tracks the income and spending patterns of 8,000 consumers across 31 categories, shows steep declines in discretionary spending, suggesting that households are choosing long-term financial security over short-term luxuries.
Average monthly spending on gym memberships has fallen sharply from £51 in September 2024 to just £13.20 this year, while subscriptions to streaming services such as Netflix and Amazon Prime dropped from £32.20 to £23.50. Spending on video gaming was hit hardest, plunging by 75 per cent to £10.90 a month from £43.70 last year.
The report highlights a marked shift in consumer priorities, with households focusing on debt reduction and savings even as disposable income has edged higher.
Kara Gammell, personal finance expert at MoneySuperMarket, said: “While disposable income has risen, many UK households are making deliberate choices to prioritise long-term financial health over short-term luxuries. The steep decline in discretionary spending reflects this new mindset.”
Gammell added that households are not simply cutting costs but “making their money work harder”, with savings increasingly directed towards loan repayments, pensions and investments.
However, the findings drew scepticism from the fitness industry. Huw Edwards, chief executive of ukactive, said the figures did not align with what gyms are seeing on the ground. “This research does not reflect the clear trends we are seeing in demand for gym memberships,” he said. “A record 11.5 million people are now members of a gym in the UK, with strong growth across all age groups — particularly among younger generations prioritising their health and wellbeing.”
The report shows households are spending £55.26 a day on bills and other outgoings — an 8 per cent increase on last year. Rising costs for fuel (up 18 per cent), mortgages (up 10 per cent) and groceries (up 8 per cent) continue to squeeze budgets, while school and childcare expenses have surged 23 per cent.
Even traditionally fixed expenses have fallen as households hunt for better value. Spending on mobile phones and top-ups dropped by £10 to £29.80 a month, while broadband and telephone bills declined from £46.70 to £41.20. Life insurance payments fell to £13.79, and toiletries spending slipped from £29 to £25.
MoneySuperMarket’s data also shows a rise in payments towards loans, credit cards and workplace pensions, which Gammell said “signals a growing focus on financial resilience”.
“Households are using their extra cash to reduce debt and invest in their future,” she said.
The behavioural shift comes as inflation stabilises at 3.8 per cent and wage growth eases, prompting traders to bet on another Bank of England interest rate cut before the end of the year, potentially bringing the base rate down to 3.75 per cent.
While Britain’s consumers appear to be finding some breathing room after two years of relentless price pressures, the data suggests they are choosing prudence over pleasure — cutting back on non-essentials to safeguard their financial wellbeing for the long haul.
