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North West Residents Spend An Extra £1,913 As They Increase Time Online

Image by Preis_King from Pixabay

People in the North West have, on average, spent an additional £1,913 each on online shopping in the past year, the latest Lloyds Bank Consumer Digital Index has revealed.

We still have people across the North West who are not using the internet on a regular basis so it’s vital that we help people to access to online services safely.

Almost a third (32%) of people in the North West said the Covid-19 pandemic had made them more likely to make purchases without thinking about future implications, with residents making, on average, 32 more online transactions in the past twelve months.

Households in the North West have spent an extra £1,913 online over the past year as almost a third (32%) of people across the region admit to making ‘splurge spending’ decisions
More than half (58%) say their internet usage has increased since the coronavirus outbreak
But despite the increase in online spending, one in six (59%) people in the North West say they have focused on paying off debts during the past year

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 (58%) of people across the region report to having increased their internet usage, with nine in ten (90%) anticipating that their new habits will continue in the long-term.

But despite the uptake in time spent online, 4% of people across the region are still offline, having not used a desktop, laptop, mobile or tablet in the last three months.

Elyn Corfield, regional ambassador for the North at Lloyds Banking Group said: “The past year has impacted everyone differently. For some, switching from face-to-face contact to more digital communication has been a natural and easy transition. A staggering 86% of people across the North West say being online has helped them to connect better with friends and family, with more than half admitting they wouldn’t have coped without it. Beyond staying connected with friends, many have also learned to become more financially savvy and in some cases, used the internet to manage their mental health.

“But for those who lack digital skills, the past year has left some people in our community behind. We still have people across the North West who are not using the internet on a regular basis so it’s vital that we help people to access to online services safely.

“To support, 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. We believe working together will help everyone to feel more comfortable using the internet and enjoy the financial and social benefits that being online can bring.”

Despite the rise in online shopping, the pandemic has made many more people in the region careful with their finances overall. Six in ten (59%) 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 (90%) 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 more than half (52%) of North West 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 third (29%) saying they feel stressed or overwhelmed by their financial situation.

Elyn continued: “While some people have managed to turn a reduction in outgoings into savings, many have faced significant financial pressures since the first lockdown began.

“If people are experiencing financial difficulty, we’re here to help them back to financial health. We also have over 6,500 colleagues trained to support customers in building their financial resilience while 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

Manchester based Sheila, 47, was made redundant from her job as a solicitor in December 2020 but is now back working full time from home. Before Covid-19 hit, Sheila didn’t feel confident in her digital skills.

She said: “Before then, I would have said I was not at all confident or competent actually, because I had never experienced it. Other than email which is usual, but the apps like Zoom and Teams, I'd never used. I wouldn't have been confident or competent on either of those things.”

Lockdown was Sheila’s first experience of working from home. Her new firm provided a laptop and she now spends her days working using Teams extensively and feels it is an excellent way to communicate with colleagues and clients.

She said: “IT was always something I avoided really. I didn't use it to the extent I do now. If I hadn’t learnt new skills, I would be relying on my daughters and I’d be driving them up the wall every time I needed to do anything, because I wouldn't know how to do it myself. I was always a bit afraid of it, but there's nothing to be afraid of. It's fine.”