EAST MIDLANDS RESIDENTS SPEND AN EXTRA £1,278 AS THEY INCREASE TIME ONLINE

Added by Love Business East Midlands | 17 May 2021

People in the East Midlands have, on average, spent an additional £1,278 each on online shopping in the past year, the latest Lloyds Bank Consumer Digital Index has revealed.

 

• Households in the East Midlands have spent an extra £1,278 online over the past year as one in four (25%) people across the region admit to making ‘splurge spending’ decisions
• More than half (54%) say their internet usage has increased since the coronavirus outbreak
• But despite the increase in online spending, more than half (55%) of people in the East Midlands say they have focused on paying off debts during the past year

 

A quarter (25%) of people in the East Midlands said the Covid-19 pandemic had made them more likely to make purchases without thinking about future implications, with residents making, on average, 30 more online transactions in the past twelve months. 

The extra online spending comes as more people turn to the internet for goods and services in lieu of visiting the high street. More than half (54%) of people across the region report to having increased their internet usage, with nine in ten (91%) anticipating that their new habits will continue in the long-term.

But despite the uptake in time spent online, 6% of people across the region are still offline, having not used a desktop, laptop, mobile or tablet in the last three months.

Jo Harris, regional ambassador for the Midlands at Lloyds Banking Group said:

“Over the past year we’ve seen more people spend more time and money online. For some, it has been a natural and easy transition. A staggering 82% say being online has helped them to connect better with friends and family, with almost half admitting they wouldn’t have coped without it. Finding ways to be more financially savvy, staying connected with others and managing mental health are just some of the benefits of using the internet that many have made the most of.

“But a lack of digital skills has made it really challenging for others and that means we risk leaving some people in our community behind. We still have people across the region who are not using the internet on a regular basis. It’s really important that we help people to access online services - and that they know how to stay safe while doing so.

“That’s why we’re offering free digital skills training through our Academy and have 20,000 regional digital champions on hand to help people access online services. By working together, we can help everyone to feel more comfortable using the internet and help everyone to unlock the financial and social benefits it can bring.”

Despite the rise in online shopping, the pandemic has made many more people in the region careful with their finances overall. More than half (55%) say the experience of the pandemic has changed their priorities and they are now more focused on being debt free.

In line with the growth of online banking*, almost nine in ten (88%) now manage their money online and almost six in ten (58%) feel more in control of their day-to-day finances now than they were a year ago. 

The research also found that half (51%) of East Midlands residents think the steps they have taken to manage their finances in the last year mean they can now enjoy their lives more. However, many are still feeling the pressure on their household finances, with almost a quarter (23%) saying they feel stressed or overwhelmed by their financial situation. 

Jo continued:

“The pandemic has impacted us all in different ways. For some, the lockdowns reduced their daily outgoings and they’ve been able to save more. But others have had a lot of pressure put on their finances.

“We’re here to help our customers as much as we can, whether that be with their saving goals or supporting people who might be in difficulty. We’re already helping the vast majority of our customers that get into financial difficulty back to financial health. As part of our commitment to helping Britain recover, we have over 6,500 colleagues trained to support customers in building their financial resilience. In addition, our Academy is actively helping people become more financially resilient by giving them the skills to be more in control of their money.” 

Case study

East Midlands based Pat, 69, has been using the internet during the pandemic to do her grocery shopping online, order her medication, and has been able to boost her online banking skills.

“Before the lockdown, I didn’t know how to cash in cheques digitally. Now, I do. Using the online banking service is really easy – it takes you through it step by step.

Pat has also been using the internet during the pandemic to access vital rehab services. As a sufferer of Scoliosis and various other health issues, she has been able to use the internet to access remote physio classes that would normally be delivered at her local community hall, and stay connected with her WI and craft groups online, which has positively impacted her mental health.

“The internet has given me some much-needed contact with the outside world. I’ve managed living on my own – I can speak to my daughter over the phone every night – but it’s not the same as actually seeing people, which I can now do via video calls, which is the real game-changer.”

“I do feel for people who have had no contact at all. Because of the internet, I feel as though I’ve got through the other side.”

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