88% of Brits look for savings on essential outgoings and bills in 2021

Covid-19 has caused an economic crisis at both a worldwide and a domestic household level.  Lockdowns to halt the spread of the virus have resulted in abrupt falls in employment, wages, and income - leaving many people feeling financially insecure and needing to tighten their purse strings. 

The economic impact of Covid coupled with the end of the Brexit transition period has left many people feeling pessimistic about 2021.  Well over a third (36%) of people surveyed, said that the rising cost of living is a major concern for 2021, while 30% are worried about Brexit increasing prices.     

Food shopping was identified as the biggest area where savings could be made in 2021, followed by takeaway meals.  

However, the survey suggests that some people have stretched their household finances as far as they can go.  Just over a fifth (22%) said that they don’t think that they can make any savings in their essential outgoings.

Commenting on the research findings, Sally Jaques, Gocompare Money, said, “Over the last year, Covid has taken an enormous toll on the Nation’s health and finances.  The economic repercussions of the pandemic are already straining many people’s household budgets and, it remains to be seen what impact the end of the Brexit transition period will have on prices in 2021 and beyond.   

“Many household budgets are tight at the best of times and, a cut in income can quickly impact on the ability to cover household bills and other essentials.  If your household finances have been adversely affected by the pandemic, it’s important to get a clear picture of the situation so you can take steps to manage it.

“Capturing all your outgoings, including food and housing costs, transport, entertainment, debts, insurance and savings commitments is the essential first step in setting a personal budget.  If after assessing all your outgoings you find that they exceed your income, then it’s time to review your spending.  Prioritise necessities, remove any non-essential purchases and look at areas where you are spending more than you need to.”

Using a comparison site like GoCompare can help stretch your finances by making it easy to compare a wide range of products and services from car insurance, mortgages, utility bills to credit cards and mobile phone deals. 

Providers constantly review their pricing, so even if you think you’re getting a good deal on your financial products at the moment, it is worth regularly shopping around.  For example, customers comparing products and prices on GoCompare² could save up to £277 on their car insurance, up to £107 on their home insurance and, up to £567 on dual fuel bills.

If you are experiencing financial difficulties, don’t ignore the situation – take action:

• Draw-up a budget based on your income and outgoings and stick to it.
• If you need to cut the cost of essential services and insurances, shop-around for a better deal.
• If you are facing significant financial difficulties, talk to your mortgage provider or landlord as soon as possible to agree a payment holiday or a new repayment plan.
• Speak to your current insurer and ask them what they can do to help in terms of reducing or deferring premiums.
• Talk to your bank about an agreed overdraft and an interest-free overdraft buffer. Check with your credit card, loan, or car finance provider to see what help is available in terms of a payment holiday or a new repayment plan.
• The Government has made it easier for people to access benefits and claim sick pay. Check what benefits you could be entitled to.
• Seek free debt advice from the Money Advice Service online, at https://www.moneyadviceservice.org.uk/en

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For further information please contact:

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Keep up-to-date with GoCompare on Twitter; @GoCompare

Notes to editors

¹On 7 December 2020, an online survey of 2,057 randomly selected Great British adults was executed by Maru/Blue. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.1%. The results have been weighted by age, gender, region and social grade to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Great Britain. Discrepancies in or between totals are due to rounding.

²GoCompare customer savings:

Car insurance: According to independent research from Consumer Intelligence conducted between 1 August to 31 August 2020, 51% could save up to £277 with GoCompare Car Insurance.

Home insurance: Price savings are based on independent research by Consumer Intelligence during 01 August 2020 to 31 August 2020: 51% of consumers could achieve a saving of up to £107 with Gocompare Home Insurance.

Energy Bills: Between 1 January to 31 March 2020 at least 10% of customers who provided their usage and received a price for switching both gas & electricity could save £567.16.

GoCompare

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocogroup.com