Fall in travel drives essential spending drop in first full month in lockdown

Essential spend in April fell by six per cent compared to last year, as the country spent its first full month in lockdown, data from Lloyds Bank has shown.

Essential spending was down 6 per cent in April.

The overall dip in essential spend in April was driven by a drop in money spent on travel. Spend on health services, such as visits to dentists and opticians, also suffered this month when compared to a year earlier, down 55 per cent.

However, supermarkets and food stores continued to buck the trend as people prepared for longer periods at home. Spending grew 18 per cent year on year in April, the same increase as was seen in March.

With many establishments still closed to customers, severe dips in spending on holidays and in restaurants, accounted for 11 per cent and nine per cent of the total fall in April. However, money put towards charitable causes is up four per cent in April compared to last year, a huge show of support to the most vulnerable in society when everyone is faced with such uncertainty.

Gabby Collins, head of payments at Lloyds Bank, said: “The heavy falls in total spending seen in April – particularly in areas such as holidays and commuting - were expected following the guidance from the UK Government to ‘Stay at Home’. However, the eventual impact on people’s finances is going to be harder to predict, with many experiencing drastic changes to their financial situation due to the pandemic.”