• Lloyds Bank data unearths how different generations and regions spend on making memories
• Non-essential spending on holidays, restaurants and recreation rising
• Non-essential spending increase is slowest in London
• Gen Z holiday spending growing quicker than Millennials and Generation X
Non-essential spending in the UK is on the rise despite the cost-of-living crisis, according to data from Lloyds Bank.
Every region in the UK, including Scotland, Wales and Northern Ireland, is spending more on non-essentials like holidays, restaurants and recreational activities but London is the slowest-growing region for this type of spending.
Lloyds Bank has revealed the data following the launch of its new credit card, the World Elite Mastercard®, which enables customers to earn cashback on every card purchase made, alongside enjoying a range of travel benefits.
With millions of customers across the UK, Lloyds Bank touches nearly every community and household in the country. The analysis, based on card spending of the bank’s customers, provides live insight into the state of the nation.
Non-essential purchases – like holidays and restaurant spending – have been in positive growth, year-on-year, since May 2021. In 2023 alone, year-on-year non-essential spending has grown more than 3% every single month, peaking at a 10% increase in January.
The data indicates the trend is largely being driven by wanderlust – particularly amongst the over 65s, who have increased spending in this category by 21% in October. Millennials (people aged 25 to 34) meanwhile, are displaying the slowest growth among generational holiday spenders year-on-year, up 11.8%, while Gen Z consumers (aged 18 to 24) have seen holiday spend grow 16.9% over the last year.
Taking a regional view, consumers in Wales are leading the charge in holiday spending – up by more than a fifth compared to last year (21.6%), while Scottish holidaymakers and those in the South West have increased travel card spending by 19.5% and 19.1% respectively.
Spending from people living in London shows the slowest growth at 12.5%, with those in the North West spending 16.5% more year-on-year.
Overall, year-on-year holiday spending is up 17.1%, restaurant spending is up 6.2% and recreational spending is up 3.3%.
Looking at regional growth around non-essential spending more broadly, you see London showing the slowest growth – up just 1.8% compared to the previous year.
Meanwhile, consumers in Yorkshire and the Humber, which is the fastest-growing region, spent more than 6% on non-essentials when compared with the previous year and Scottish consumers also spent over 5% more.
The data also shows that spending on restaurants and going out to socialise account for the biggest non essential spending growth across all generations and all regions across the UK in October.
Marc Lien, Credit Cards Managing Director at Lloyds Bank, said: “Despite understandable concerns around the cost-of-living crisis, people still want to socialise and have a holiday to look forward to.
“We’ve come through a challenging few years, and it’s positive to see that consumer spending is on the rise.
“After listening to our customers it’s clear that spenders up and down the country want more from their credit and debit card providers, and this is more important than ever at times like these – that’s exactly why we launched the Lloyds Bank World Elite Mastercard®, to provide better, more easily accessible rewards.
“The new Lloyds Bank World Elite Mastercard® offers cashback on every card purchase – no matter how big or small – and great benefits for travellers, including the luxury of skipping airport security queues and access to over one thousand airport lounges worldwide.”
Customers using the World Elite Mastercard® will earn 0.5% cashback on each card purchase up to and including £15,000. When total card spending reaches over £15,000, each card purchase will earn 1% cashback, paid into the account each month.
World Elite Mastercard® customers will also receive benefits which add a touch of luxury when travelling:
o Access to over 1,300 airport lounges, including lounges at London Heathrow, Edinburgh International, Orlando International, Dubai International and many more, through Priority Pass. (Owned and operated by Collinson.)
o Cardholders will be able to skip airport security queues and upgrade their airport security experience at participating airports, powered by DragonPass.
o Direct access to Mastercard’s priceless.com experiences and content in the UK and around the world.
World Elite Mastercard® also provides one additional cardholder with all the card benefits at no extra cost to the initial £15 per month.
Cashback earned by the additional cardholder will be added to the main cardholder’s running total, and will be included in the monthly cashback payment made to the account.
The main cardholder will be able to view or manage their World Elite Mastercard® and travel benefits through online banking and the mobile app.