Half of UK households (49%) - an estimated 14 million households
- are being forced to dip into savings, sell possessions or take
other measures to cover the cost of essentials, according to new
Which? research that shows consumer confidence in the economy has
plunged to its lowest level since the end of 2022.
Which?'s latest Consumer Insight Tracker has found that
confidence in the future of the UK economy plummeted by 13 points
to -56 in the month to 13 March - the lowest level recorded since
the end of 2022.
This score reflects a deep-seated pessimism across the country,
with two-thirds (67%) of UK adults now expecting the national
economy to worsen over the next 12 months, while just 12 per cent
think it will improve.
While confidence has not yet reached the depths of the pandemic
(-78) or the 2022 cost of living crisis (-70), the drop
highlights a growing strain as millions of households continue to
struggle.
Strikingly, financial pressures are forcing half of UK households
(49%) to make at least one adjustment to cover essential
spending, impacting around 14 million UK households. A woman from
the West Midlands told Which? that while the price of food, fuel
and utilities has increased massively, “wages do not keep
up”.
These adjustments include cutting back on essentials, dipping
into savings, selling possessions or borrowing.
The consumer champion's findings show that savings are shifting
from a safety net to a lifeline, with a quarter (26%) of
households now regularly dipping into savings to bridge the gap
between their income and the rising cost of essentials. This
contrasts with the end of 2025, when financial stress appeared to
be declining.
A glimmer of positivity is that the proportion of households
missing an essential payment fell to 6.6 per cent (1.9 million
households) from 8 per cent in February. However, the three-month
moving average shows a more worrying trend, with the rate rising
back towards levels seen throughout 2024 and 2025.
Confidence in the future of household finances has also hit its
lowest level since April last year, falling five points this
month to -15. A man from the North East told Which? that “the
cost of living is going up day by day and there are no positive
signs of anything coming down in price”.
Which?'s Consumer Insight Tracker also showed that consumers are
increasingly worried about international factors. Some people
explicitly tied their concern about their own future financial
situation to the conflict in the Middle East and its impact on
fuel prices.
One woman from Yorkshire and Humberside told Which? she expects
the war to be felt in every part of the economy, requiring a
“much greater percentage” of her income just to maintain the
status quo.
If people are missing or struggling to afford essential payments,
such as energy, credit card or mortgage payments, then they
should speak to their provider immediately for help. Businesses
should be doing everything they can to help their customers and
ensure they are offering value for money.
Sue Davies, Which? Head of Consumer Protection Policy, said:
“Our research shows a concerning shift in consumer sentiment,
with confidence in the economy hitting its lowest point in years
as households face a daunting combination of rising prices and
global instability. Millions are now being forced to dip into
savings or sell possessions just to keep up with the cost of
everyday essentials.
“Pressure on budgets is becoming unsustainable for many. We would
encourage anyone who is struggling to keep up with their bills to
speak to their providers as soon as possible and seek free,
independent debt advice.”
-ENDS-
Notes to editors:
Methodology
Fieldwork for Which? 's Consumer Insight Tracker is conducted
monthly by Yonder on behalf of Which?. The latest wave of data
collection took place between 13th to 15th of March. A
sample of 2,085 UK adults were surveyed online and weighted to be
nationally representative.
Which? estimates that between 5.6% and 7.7% of households missed
or defaulted on a housing, bill or credit payment in the last
month to March 13th, with an average estimate of 6.6%. Based on
the survey and the ONS estimate for the number of households in
2024 of 28.6 million, this scales up to between 1.6 million and
2.2 million households missing a bill payment in the last
month, with an average estimate of 1.9 million.
This survey indicates that between 47% and 51% of households made
at least one adjustment to cover essential spending in the last
month to March 13th with an average estimate of 49%. Based on the
survey and the ONS estimate for the number of households in 2024
of 28.6 million, Which? estimates that between 13.5 million and
14.7 million households made an adjustment to cover essential
spending in the last month, with an average estimate of 14.1
million.
Which? Consumer Insight
Tracker
Find out more about where to go for debt advice
https://www.which.co.uk/money/credit-cards-and-loans/how-to-deal-with-debt/free-debt-advice-contacts-ahulr3l9Bln1
Find out more about what to do if you are struggling to pay your
energy bills
https://www.which.co.uk/reviews/cutting-your-energy-bills/article/how-to-save-on-your-energy-bill/help-if-you-re-struggling-to-pay-your-energy-bill-aXsId8V8dMv4
