Yorkshire Building Society warns of the detrimental long-term economic impact of the cost-of-living crisis

According to Yorkshire Building Society’s Inflation Nation report, which asked 4000 adults across the UK a series of questions around their ability to cope with the cost-of-living crisis, 24 per cent of Brits across all age groups plan to cut back on non-essential items, including leisure activities, inessential clothing, trips to restaurants, holidays and trips to the pub, by £50 to £99 a month, while 19 per cent plan to do so by £100 to £199.

Young people, those under the age of 40, were the most likely to cut spending on non-essential items to make ends meet. They were also considerably more likely to cut back by more than their older counterparts.

Nitesh Patel, strategic economist at Yorkshire Building Society, says: “With the cost of living increasing, people are doing the sensible thing and looking at their finances and assessing where they can save – and no group more so than the young.

“For most, this means cutting back on things that, whilst they enjoy, they feel they can do without. This includes going out for dinner, going to the pub with friends, leisure activities, buying clothes you don’t necessarily need and holidays.

"Cutting back on non-essential spending is something that people could do in order to navigate the coming months – and even years.

"Indeed, as inflation approaches double figures, it is showing no sign of abating any time soon. And to make matters worse many people are seeing their earnings grow by less than inflation.

“Reducing spending where they can will ensure that young people can not only cover their costs, but, also support them to stay on track and meet major life milestones.”