Nearly one in five (18%) adults have seen their income improve over the past three months – marking the highest proportion in a year – according to a survey.
The number of people across the UK experiencing an increase in the amount of money they have coming in is the highest since the quarterly LV= wealth and wellbeing monitor started in June 2020.
As coronavirus-related restrictions have eased to varying extents across the UK, consumers reported that their outgoings are increasing, with people already spending more on socialising and expecting to do so more in the future.
On Monday, Prime Minister Boris Johnson set out his intention to end nearly all of England’s remaining coronavirus restrictions. The lifting is expected to happen from July 19.
Looking at people’s priorities as restrictions ease further, 28% of people surveyed for LV= plan to socialise more and a quarter (25%) are planning special days out with family to make up for lost time.
Around 23% expect to make home improvements and 21% plan to be more environmentally conscious.
A fifth (20%) of people aged over 65 meanwhile plan to give money to children or grandchildren as restrictions are eased further.
LV= said its latest research also suggests that fewer people are feeling lonely or isolated – although the number remains significant. Nearly a quarter (24%) of people feel lonely and isolated, edging down from 31% in March.
One in 16 (6%) are worried about losing their job, the survey of 4,000 people in June found, down from 8% in March.
And just over a quarter (27%) are worried about money, compared to 30% of people surveyed in March.
One in six (16%) people have booked a holiday in the past three months – double the 8% who had done so when asked in March.
However, a quarter (24%) of people are now worried about rising prices of everyday items such as food, clothing and utilities.
Clive Bolton, managing director of savings and retirement at LV= said: “Confidence is returning as a growing number of people say their income has increased over the past three months and, as lockdown eases, they are saving less and spending more on socialising.
“This is good news as it indicates that the UK could experience a stronger recovery when lockdown restrictions are eased and life begins to return to normal.”