Data gathered from users of Moneyhub’s open finance platform has shown that in the 12 months from June 2022 to June 2023, for a typical user paying a mortgage, their overall spending has risen by 38.2% (£579) on average.

In contrast, the data shows that their wages have only grown by an average of 8.4% which has had a knock-on effect on their ability to save which fell -35.1% (-£238) over the same period.

Within this cohort, both monthly non-discretionary and discretionary spend were up 13% and 25% respectively as inflationary pressures have increasingly impacted all UK consumers over the last 12 months. Within non-discretionary, average spend on monthly groceries rose the most, between June 2022 and June 2023 up 38.6%. Utility bills rose 16.6% and mortgage payments rose 6.4% and is on average, 21% of net income.

Mark Horwood-James, managing director, Moneyhub Personal Finance Technology, said: “The economic challenges of the last 12 months are impacting everybody. We can identify already that Moneyhub users paying a mortgage are seeing their ability to save for the future disappear. Their non-discretionary and discretionary spend outstrips their wage growth, so their capacity to save has already dropped by £238 compared to the same period last year. Clearly this raises concerns about everyone’s long-term financial health.

“Enabling individuals and families to understand their whole financial universe and spending patterns will automatically support better decisions being made, which can of course improve their long-term financial outcomes. Technology such as Open Banking and Open Finance is now empowering consumers to do just that.

“By aggregating all of their financial accounts into one place and overlaying this with machine-learning technology, access to relevant insights, and unique nudges specific to their circumstances, brands like Moneyhub offer smart and tangible actions which will help improve financial wellness.”