In a social media post, now deleted, and an article on its website, the bank suggested customers cut back on drinking and use the money to make early payments on a mortgage instead.
The post read: “How can dry Jan help you start a habit that could see you save a massive £13k?
“Let’s break it down:
- Average cost of a pint = £4.81
- 3 pints a week = £14.43 saved
- Over a month? That’s 12 pints, which is £57 back in your pocket
“£57 might not sound like a lot but if you used that to overpay on your mortgage each month, you could save a whopping £13,000 in interest over the course of your mortgage and even pay it off 2 years earlier!
“It’s a small change that can make a big difference. Dry Jan isn’t just about cutting back on booze - it’s a chance to rethink where your money’s going each month. So, by saying ‘no’ to a few pints now, you could be buying yourself some extra freedom down the line.”
The marketing move has been branded as “irresponsible” and many operators are now calling for a boycott of the bank and say they’re considering switching to a new bank.
Ashley English, landlord of the Kings Head, Docklow, responding to the ad on Facebook said: “Great then have freedom later in the life to go out and enjoy your money at the local .....Ah supermarket? There’ll be nothing left!”
Andre Smith, licensee of the Penruddocke Arms, in Dinton, Wiltshire, said: “12 pints not drunk means one student out of a part time job, one mother of three not providing for her children, £10k spent on local suppliers gone, a building that’s been a pub for 400 years at risk for 12 pints. Is it really worth it?”
In an open letter to the CEO of Santander UK, Glen Hutchinson, licensee of the Spinners in Cowling, said: “[The chancellor] will be absolutely exasperated to find one of the main-stream banks encouraging people to spend less money every week in the economy by further strangulation of the hospitality industry.
“It’s quite disturbing to think that a bank hasn’t got the intelligence to understand that if people spend less, prices increase , taxes go higher and money becomes shorter whereas if the opposite happens everything increases.”
Adelle Gill, licensee of the White Hart in Corsley, said: “Why not think of it this way. A pint cost £4.81, three pints is £14.43, that’s a pub paying a member of staff for 1 hour’s work plus a bit of change to go towards the pot.
“Over the month that’s £57, 12 pints keeping the brewers brewing. That £57 is keeping a staff member paid, helping towards running costs of a small independent family run pub. It’s getting people out talking, building communities. Checking on the elderly the vulnerable.
“£57 might not sound like a lot but families need you to support small businesses to keep food on the table and roofs over their heads. Support your local pub please.”
Kate Nicholls, CEO of UKHospitality, said: “January and February can be tough enough months in hospitality as it is without unhelpful and irresponsible campaigns like this - the last thing the economy needs right now is a message deterring people from going out.
“Frankly, people could have a bigger impact on their finances by going Netflix free for a month, swapping a bus ride for a walk or doing a finance and energy spring clean, all of which would save more money without damaging livelihoods in the hospitality sector.
“What Santander needs to realise is many of their customers will work in hospitality and their jobs could be jeopardised by marketing stunts like this.”
Steve Alton, CEO of the British Institute of Innkeeping said: “The targeting of embattled pubs in every community by Santander UK is poorly judged, when many pubs are fighting for their very survival.
“Our recent survey highlighted that with the increased taxes to be implemented by Government in April on employment costs and business rates, 80% expect to be unprofitable and 1-in-4 are at risk of failure, and will be lost to their communities.
“Our nation’s pubs are so much more than a pub. They are essential local employers, supporting many first-time jobs and vital part-time work, fitting around team members other commitments. They are foundational in local economies, at the heart of regeneration of high streets and communities, they support countless local suppliers, and provide an essential community space for people to come together.
“I look forward to Santander reflecting on its misguided approach and joining the call to support great British pubs before they are lost.”
A spokesperson for Santander denied they were targeting pubs, claiming the post did not mention pubs, despite quoting the average on-trade price of a pint.
She added the post was aimed at people who were already taking part in dry January: “Many people choose to take part in new year savings initiatives, including ‘Dry January’ and other no-spend challenges, and use this time to re-evaluate their financial goals.
“How long these spend challenges run for, and where people choose to allocate any additional funds they have as a result is, of course, their choice. However, many people are unaware of the impact of making relatively small overpayments on their mortgage.”