Captain Tom, McDonald’s and DIY: The things we spent our money on in 2020

The year of the coronavirus pandemic wasn’t just destructive in terms of public health - it also took a wrecking ball to the global economy. The UK entered a recession of historical magnitude and millions were put on furlough to avoid companies making mass redundancies.

For those who kept their jobs it wasn’t all plain sailing, with many enduring mandatory pay cuts despite working ever-longer hours. Others, who were able to, became rainy-day savers (in the first two months it was suggested one third of Britons had saved £500), presumably worried about their own job security.

In June, a YouGov poll gave some preliminary suggestions about how our bank balances were faring. It concluded that, on the whole (and in spite of the economic downturn), the pandemic was costing us less money than a normal year - with over half the nation spending less disposable income. 

There were some categories where people were splashing more cash than before; groceries, alcohol to drink at home, hobby supplies and books. But overall people were spending less, particularly 25-34 year olds, where 62 per cent said the pandemic had cut costs.

In December, after nine months of restrictions, comments by the Chancellor, Rishi Sunak, suggested that the government believed people had continued to build up a nest egg during their time at home. Mr Sunak told Conservative Party members that people should prepare to spend their pandemic savings to help the economy bounce back.

But did people really reduce spending, or did we simply adjust our outgoings to spend on other things to make lockdown more tolerable? And can this data forecast how spending might look in the first quarter of 2021, as we once again live through lockdown.

Monzo, a bank with 5,000,000 users, shared exclusive data with The Independent, showing noticeable changes to spending patterns, with people coughing up more for video games, DIY projects and charity payments, more than in previous years. 

In 2019, the number of transactions happening online was almost the same as those taking place in person. But in 2020, people shopped online 84 per cent more than in-person. It’s perhaps hardly surprising considering restaurants, pubs, and non-essential shops were closed more frequently than they were open? As per previous years, the biggest shopping day was Black Friday.

And as lockdown fatigue set in, people were spending more. The amount spent in the second quarter of the year, compared to the first, increased by 30 per cent. Despite this, the number of transactions only rose 4 per cent, indicating people were treating themselves more or perhaps trying to buy all they needed in one large shop, rather than numerous deliveries. 

The type of products people were buying had changed too. As headlines focused on panic buying toilet rolls and penne pasta, the impact was real. Monzo data shows money spent on groceries peaked in the week beginning 15 March at 60 per cent higher than January and February. And although this was not repeated, spending on groceries - either as a boredom distraction or a result of reduced eating out - remained 36 per cent higher than in 2019.

As well as spending on groceries, we also became more familiar than ever with our Deliveroo drivers. Food delivery transactions boomed (by more than a third) with McDonald’s being the clear winner. Total Monzo transactions for the golden arches were 50 per cent higher than its nearest rival, Deliveroo. Other winners were Uber Eats and JustEat. 

Another area where we increased our spending in March was (unsurprisingly) DIY projects. With the energy to attempt sourdough starters and home-reno, on Saturday 21 March, two days before the nationwide lockdown, there were more transactions at B&Q and Wickes than any other day of the year. Between Q1 and Q2, DIY transactions rose 69 per cent.

For those less interested in a DIY project, gaming and watching television was an alternative. Transactions at GAME, Playstation, Xbox and Nintendo rising 67 per cent from March onwards. Subscriptions to Netflix and Disney Plus increased 16 per cent between Q1 and Q2. 

As well as being a year of isolation and time away from friends and family, there was an increased sense of community, with events like Clap for Carers, record numbers of volunteers and celebrity heroes like Marcus Rashford and Captain Tom Moore dominating the news.

This change was also reflected in our spending, with charitable giving shooting up in April. Transactions to Just Giving rose 396 per cent in April, compared to March.  Charitable spending totalled £45m in 2020, with huge donations making up a percentage of the total. Overall Captain Tom raised £32.8m for NHS charities.

As England starts 2021 in another lockdown - this time billed to last until mid-February at the earliest - only time will tell whether our 2020 pandemic purchases continue apace, or if we’ll review our year of unusual spending and make different choices this time around.