According to a Which? survey, nearly half of all British households are 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, a Which? survey found.
Households are being forced into drastic adjustments and debt struggles to manage the pressure. Around half (49%) of households are being forced to make at least one adjustment to ease financial pressure, according to a Which? survey. A quarter (26%) of households admit to regularly dipping into emergency savings to cover rising costs, the same survey indicates. Almost a third (31%) of Britons have resorted to cutting back on essentials such as food and heating, a TSB and Lightning Reach survey reports. Almost two-fifths (38%) reported their finances had deteriorated since this time last year, according to the TSB and Lightning Reach survey. A quarter (25%) have depleted their savings to manage daily costs, and 16% have borrowed from family or friends to manage daily costs, the TSB and Lightning Reach survey found. More than half (51%) of those surveyed are in debt, with 42% of those in debt experiencing an increase in their debt burden, according to the TSB and Lightning Reach survey. Additionally, 12% find their debt increasingly difficult to manage, and 6% have fallen behind on payments, the survey shows.
Consumer behavior is shifting as people seek ways to cope, with many shopping around, buying second-hand, and reselling items. Over a third (34%) are actively shopping around for better deals to alleviate financial pressure, according to the TSB and Lightning Reach survey. A quarter (25%) expressed discomfort in seeking financial support, even if their situation warranted it, the same survey 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 KPMG survey shows. A third of people (33%) say they have sold an item via a reselling site this year, averaging five items across all age groups, with those earning between £35,000 and £40,000 saying they have sold the most items, on average, the KPMG survey reports. A fifth of people (18%) have yet to sell an item on reselling sites this year, but plan to do so at some point, according to the KPMG survey.
Generational financial insecurity is evident, with Millennials showing distinct spending patterns linked to stress and feelings of being stuck. More than half of young adults say they feel less financially secure than they had expected to be by this point in their lives, according to an Intuit Credit Karma survey. Around a third (32%) of the Baby Boomer generation aged 62 to 80 had expected to feel more financially secure by now, and a fifth (81%) of people aged 81 and over who were surveyed also felt less financially secure than expected, the Intuit Credit Karma survey found. Nearly two-thirds (62%) of Millennials 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, with the average annual spend on purchases shaped by feelings about getting older being £1,888 for Millennials, according to the Intuit Credit Karma survey. Two-fifths (41%) of Millennials said that big purchases are more about helping them 'reset' than treating themselves, and more than half (51%) of Millennials have bought items to feel more confident, the survey shows. Nearly a third (32%) of Millennials said they tend to make big purchases when feeling stressed, and 37% of Millennials have spent extravagantly due to feeling 'stuck' or burned out, according to the Intuit Credit Karma survey.
External factors, including the Middle East conflict, are contributing to financial strain and broader confidence declines. The ongoing conflict in the Middle East is contributing to financial strain by driving up prices and mortgage rates for households, according to multiple reports. 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. GfK's consumer confidence index dropped two points to -21 this month, and GfK's major purchase index fell four points to minus 18, one point lower than last year, the GfK index shows.
Context and unknowns highlight the severity of the situation, with confidence in household finances at a low and future risks looming. Confidence in the future of household finances has fallen five points this month to -15, its lowest level since April last year, according to a Which? survey. It is unknown what specific government policies or interventions are being considered to address the widespread financial strain on British households, and how the survey findings compare to historical data on consumer confidence and financial adjustments during previous economic crises. The percentage of households at risk of falling into poverty or severe debt if current trends continues is also not specified.