Spending on luxury items has reached £158 billion, a £9 billion increase on the previous year, according to a recent report.
It marks a rise in spending that shows a £344 increase on last year, to an average of £6,194 per UK household. This is despite 19% of UK people undergoing a pay freeze during the same period.
The list of ‘Top-Ten’ essentials includes eating out in restaurants, television subscription fees and haircuts. But the largest expense many UK households simply could not go without was holidays and weekend breaks.
These accounted for over half of all luxury spending in 2012, reaching £83.3 billion collectively. Restaurant dining, the second biggest expense was £20.2 billion.
Mark Jones, LV= Head of Protection said, “The need to get away from it all is important to people when economic times are hard, which explains why holidays and weekend breaks remain the lifestyle aspect that most people are most unwilling to do without.”
However, the increase in spending is marked by households reducing spending elsewhere. 48% offset their spending by purchasing cheaper or own brand basic foods, with one third of those surveyed changing where they buy their clothes for cheaper options.
However one luxury that has not fared so well with consumers is the daily shop-bought fresh coffee, which has fallen out of the top ten for the first time, with 11% of people choosing to bring their own coffee from home.