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Consumers slash charity spend

Consumers slash charity spend

Charities, pay-TV providers and travel firms are among the organisations to suffer as cash-strapped consumers make severe cutbacks to their outgoings, according to new figures released today.

Almost a third (31%) of people polled by customer insight specialist G2 Data Dynamics admitted they would axe regular direct debit donations to charities if forced to reduce their monthly expenditure.

The survey of 1,000 representative UK consumers is also bad news for restaurants and other high-street eateries, with 60% saying they would no longer shell out on eating out. A similar number would cut back on holidays or scrap plans for travel in the short-term.

Meanwhile, nearly a quarter (23%) of respondents would stop subscription TV services, although only one in ten could live without their mobile phones and just 4% would consider giving up broadband access.

Regular savings would also take a hit - 28% saying they could not afford to put money away each month if they saw a cut in disposable income - but the long-term future is clearly still on people’s minds, with only 4% willing to stop or reduce existing pension contributions.

Alan Thorpe, commercial and operations director at G2 Data Dynamics, says: “Consumers are clearly making tough choices in the face of global financial uncertainty. What’s interesting is that potential reductions in disposable income, as prices go up and salary increases look less likely, mean they are reconsidering what is essential in their everyday lives.

“There are some harsh warnings here for brands and organisations - particularly in the travel, charity and leisure sectors - and they would do well to look again at their customer databases to make sure they do all they can to avoid being the first on people’s chopping blocks.”

The full list of results from the G2 Data Dynamics financial ViewPoint survey is as follows:

Take less/not plan any more holidays 61%

Eat out less 60%

Cancel charity direct debits 31%

Stop regular saving 28%

Cancel non-essential insurance 25%

Stop pay-TV subscription 23%

Use cheaper forms of transport 21%

Cancel mobile phone subscription 10%

Cancel broadband 4%

Reduce or stop pension contributions 4%



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