Consumer trust and concerns in August 2024

Summary

• Consumer trust in most sectors has improved in the last quarter, with trust in the energy sector seeing a 10 point increase. Trust in the water industry however continued to fall, reaching +18 which is down 40 points from May 2021. 
• The recent improvement in consumer worry about energy and food price has stopped, remaining at the same levels as May 2024 (80% and 78% respectively).
• A high proportion of consumers remain concerned about the security of data they share (69%) and being targeted by scammers (60%). Concern is highest amongst older consumers.

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While trust is improving across most sectors, trust in water companies continues to tumble

Over the last quarter consumers’ trust in sectors to act in their best interest has slightly improved. Net trust (% of those who say they trust a sector to act in their best interest - % who don’t trust) in the train sector increased from -2 to +7. Similarly, trust in the insurance sector increased by 5 points, although it remains one of the least trusted sectors with a trust score of -16 (24% trust, 40% don’t trust). 

The biggest increase in trust levels this quarter occurred for the energy sector, increasing 10 points to +5. This marks the first time since November 2021 where more UK adults trust the sector to act in their best interest than don’t trust it and continues the recovery for the sector after it reached record low levels during the energy crisis (-43 in August 2022). 

Unlike most sectors, the water industry saw a further fall in trust levels this quarter to +18. This is down 6 points from May 2024 and continues the gradual decline in trust since May 2021 when trust sat at +58. The industry has predominantly received negative coverage in recent months, such as fines over sewage spills and the financial troubles for Thames Water. Last month the Information Commissioner’s Office called on water companies to be as transparent as possible about sewage discharges in the hope to rebuild public trust.

Consumer trust in most sectors see small improvements

Consumer worry about prices remain

At the height of the cost of living crisis in August 2022, over nine in 10 consumers were worried about energy prices (93%) and just a slightly smaller proportion were concerned about fuel prices (88%) and food prices (87%). Over the last couple of years we have seen a steady improvement in consumer concern about prices (the recovery in food concern started slightly later in August 2023). 

In the last quarter this recovery however has stalled for both food and energy prices, both sitting at the same levels as three months ago (80% for energy prices and 78% for food prices). Concern about housing costs have even increased this month, with 78% of consumers now worried about them. This plateauing in the recovery of consumer financial worries may reflect the growing financial difficulty observed this month. 

The biggest change in consumer worry this month occurred for interest rates, with a 10% increase in the proportion of consumers saying they were worried about the interest rates on savings. This is likely in response to the Bank of England announcing the first decrease to the Bank Rate since 2020 (to 5%, a reduction by 0.25 percentage points). Pensioners had the largest increase in concern about interest rates on savings, with the proportion of them concerned increasing from 36% to over a half (53%).

Recent improvements in consumer concern about prices plateau

A high proportion of consumers remain concerned about the security of data they share

Consumer worry about consumer issues

Over the last five years we have also asked consumers if they are worried about various non-financial consumer issues. In February 2023 we also began asking about their data. Consumer concern about the security of the data they share remained high this quarter with almost seven in 70 (69%) of consumers being worried. This is very similar to previous quarters, with the level of concern always sitting just below 70%. Many consumers are also worried about being targeted by scammers, with six in 10 reporting concern (60%). 

Older consumers remained most worried about both of these in August. 71% of over 65 year olds reported concern about being targeted by scammers, compared to half of 25 to 34 year olds (50%). Similarly, older consumers are more concerned about the security of the data they share; over three quarters of over 55 year olds are concerned (76% of 55 to 64 year olds and 77% of over 65 year olds), compared 60% of 18 to 24 year olds

Older consumers are more worried about scammers and the security of their data