A Which? survey indicates nearly half of all British households are being forced to dip into their savings, sell their possessions, or borrow money to cover the basic costs of everyday living. Consumer confidence in the future of the UK economy plummeted by 13 points to -56 during February and March, according to the Which?
Consumer Insight Tracker. Two-thirds of UK adults (67%) said they expect the economy to worsen over the next 12 months, the Which? survey found.
Around half (49%) of households are being forced to make at least one adjustment to ease financial pressure, the Which? survey shows. A quarter (26%) of households admit to regularly dipping into emergency savings to bridge the gap between income and rising costs, according to the same survey.
Confidence in the future of household finances has hit its lowest level since April last year, falling five points this month to -15, the Which? survey indicates. Nearly a third (31%) of Britons have already resorted to cutting back on essentials such as food and heating, a TSB and Lightning Reach survey found.
Almost two-fifths (38%) reported their finances had deteriorated since this time last year, the TSB and Lightning Reach survey shows. To manage daily costs, a quarter (25%) have depleted their savings, and 16% have borrowed from family or friends, according to the TSB and Lightning Reach survey. More than half (51%) of those surveyed are in debt, with 42% of this group experiencing an increase in their debt burden, the TSB and Lightning Reach survey indicates.
A concerning 12% find their debt increasingly difficult to manage, and 6% have fallen behind on payments, the survey found. A quarter (25%) expressed discomfort in seeking financial support, even if their situation warranted it, according to the TSB and Lightning Reach survey. GfK's consumer confidence index dropped two points to -21 this month, according to the GfK index.
GfK's major purchase index fell four points to minus 18, one point lower than last year, the index shows. A poll of 1,000 18–29-year-olds found 95% are finding savvy ways to save money without giving up life's little luxuries, according to Plum research. 28% of Gen Z using reselling apps to make money from unwanted belongings have made an average of £184 over the past year, the Plum research indicates.
46% of Gen Z have opted for the ‘round up’ setting on banking apps to save extra cash, the research found. A third (33%) of Gen Z are making the most of Lifetime ISA accounts to purchase their first home or put towards retirement, according to Plum research. 23% of Gen Z treat themselves to ‘little luxuries’ on a weekly basis, the research shows.
Over the past year, 58% of Gen Z reckon their general spending habits have changed, with the majority putting it down to the cost of living, Plum research indicates. Buying second-hand has been the first choice for one in 10 consumers when purchasing items other than food so far this year, a KPMG survey found. 8% of people of all ages report using reselling sites as their main way of buying non-grocery goods so far in 2026, rising to 15% of those aged 18 to 24, according to the KPMG survey.
Based on personal income, those earning between £30,000 and £35,000 have bought the most using resale platforms this year, the survey indicates. A third of people (33%) say they have sold an item via a reselling site this year, averaging five items across all age groups, the KPMG survey shows. Those earning between £35,000 and £40,000 say they have sold the most items, on average, according to the survey.
A fifth of people (18%) have yet to sell an item on reselling sites this year, but plan to do so at some point, the KPMG survey found. More than half of young adults say they feel less financially secure than they had expected to be by this point in their lives, an Intuit Credit Karma survey found. 51% of Gen Z adults aged 18 to 29 said they feel less financially secure than expected, as did 53% of Millennials aged 30 to 45, according to the Intuit Credit Karma survey.
Half (50%) of Gen X adults aged 46 to 61 had expected to feel more financially secure by now, as did around a third (32%) of Baby Boomers aged 62 to 80, the survey shows. Looking at Millennials, nearly two-thirds (62%) said they had made at least one purchase in the past year shaped by how they feel about ageing and where they are in life, the Intuit Credit Karma survey indicates. The average annual spend on purchases shaped by feelings about getting older was £1,888 for Millennials, according to the survey.
Two-fifths (41%) of Millennials said that big purchases are more about helping them “reset” than treating themselves, the survey found. More than half (51%) of Millennials have bought items to feel more confident, and 40% to feel more in control, according to the Intuit Credit Karma survey. Nearly a third (32%) of Millennials said they tend to make big purchases when feeling stressed, and 37% have spent extravagantly due to feeling “stuck” or burned out, the survey shows.
Some survey respondents said their concerns about their future financial situation were linked to the conflict in the Middle East and its impact on fuel prices, according to Which? survey respondents. The ongoing conflict in the Middle East is contributing to financial strain, driving up prices and mortgage rates for households, a report by The Independent indicates.