Over half (58%) of people have cut back on spending in 2018, saving an average of £125 a month, according to the latest Lloyds Bank Spending Power Report.

The report revealed that those in the North West are the most frugal, with two out of three people cutting back in 2018.

According to the report, half of respondents anticipate spending less this year, with most planning to save £164 a month.

Furthermore, the report revealed that those aged between 18 and 34 took the lead in “tightening their purse strings”, with 61% of them changing their spending behaviour to save money. This is compared with 47% of over 55’s who have amended their spending habits to save money.

It was also the younger generations that were able to save more per month, putting away an average of £149 per month.

Lloyds found that savvy spenders made cuts across the board in order to increase their savings, though spontaneous purchases (64%) and grocery shopping (62%) were the most common targets of spend reductions. Similarly, 59% made reductions to the amount they splashed out on leisure activities.

In addition to this, consumers have chosen to utilise loyalty discounts and vouchers to manage their spending, with 43% having collected and used vouchers from retailers, while nearly a quarter (23%) have turned their heads to savings websites for cut price goods.

Lloyds Bank managing director Robin Bulloch said: “Although 2018 has been a year of uncertainty for consumers across the UK, the majority are taking positive steps towards keeping back cash, showing that they recognise the need to take action and engage with their finances.

“Taking the time to research your purchases to obtain the best deals possible can ultimately save you a pretty penny.”

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