Savvy consumers save cash seeking digital dividends

The UK Consumer Digital Index from Lloyds Bank explores the links between how tech-savvy people are and the impact this has on their finances.

It found around 11 million UK adults have low levels of digital capability - meaning they are not making the most of online products, tools and services to save money such as comparison and consumer help websites, vouchers and discounts or auction websites.

The index is supported by digital skills charity Go ON UK, technology services company Accenture, and charity Toynbee Hall.

It warned that, without action, the financial divide will deepen between those who are using the internet to compare deals and those who are “digitally excluded”.

The report was based on data from one million people from across the UK as well as a survey of more than 2,700 people.

It found 70% of people use the internet regularly to save money, typically saying they clawed back £62 per month or £744 per year in this way.

Northern Ireland emerged as one of the higher saving areas with people claiming to save £73 on average each month by going online,

While £744 was the average digital dividend, more than one in 10 (11%) people who made savings online said they were saving more than £200 a month - adding up to annual savings of more than £2,400.

Asked where they are making the greatest online savings, 82% of internet users said they save on holidays, while 79% cut their insurance premium costs and 73% save on hobbies.

Meanwhile, 70% of internet users said they save money on clothing, 65% save on utility bills, 64% get cheaper transport costs and 42% save on groceries.