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Insight article

Financial wellbeing in May 2026

Your regular update on consumer confidence and financial wellbeing
3 min read
Rob AshfordSenior Policy Researcher

Summary

  • One in thirteen UK households (7.5%) reported missing a housing, bill, loan or credit card payment in the month to May 13th and half of households (50%) reported making adjustments to cover essential spending, such as cutting back on essentials, dipping into savings, selling possessions or borrowing.
  • The proportion of households missing a payment in the month to May 13th was significantly higher among low income households (10%), renters (13%) and those in receipt of Universal Credit payments (20%).
  • Consumers’ confidence in both the future UK economy and their own future financial situation improve slightly in May. Confidence in the future UK economy rose 10 points to -52 and confidence in future household financial situation improved 8 points to -15.

You can view more data and articles from our monthly tracker survey on our dedicated Consumer Insight Tracker page.

Financial difficulty falls slightly, but remains high

Both our financial difficulty metrics fell by small amounts this month. In the month to May 13th:

  • 7.5% of UK households reported missing a housing, bill, loan or credit card payment (7.7% last month)
  • 50% of households reported making adjustments, such as cutting back on essentials, dipping into savings, selling possessions or borrowing (53% last month)

Whilst these levels of financial difficulty are slightly down compared to last month, they remain at elevated levels. As seen in the chart below, the past three-month moving average of missed payments sits at 7.3%, higher than any level seen throughout 2025. Similarly the past three-month moving average of financial adjustments is 51%, higher than any level seen throughout 2025. Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing.

Recent rises in financial difficulty have hit certain groups harder than others. The proportion of households missing a payment in the month to May 13th was 10% amongst low income households (annual income below £28,000), 13% amongst renters and 20% amongst those in receipt of Universal Credit payments. These are all significantly higher than their counterparts.

Consumer confidence recovers slightly

Consumer sentiment plummeted in the last two months in response to the conflict in the Middle East. Our latest data from mid-May shows consumer confidence in both the future UK economy and their own future financial situation improved slightly. Confidence in the future UK economy rose 10 points to -52 and confidence in future household financial situation improved 8 points to -15. This reflects that one in five consumers think their household financial situation will improve over the next 12 months (19%), a third think it will worsen (34%) and 41% think it will stay the same. 

Despite these improvements, these two consumer confidence metrics remain significantly lower than where they were at in February (-43 and -10 respectively). 

Consumer confidence in their current financial position increased three points this month to +20.

UK consumer confidence

Source: Which? Consumer Insight Tracker. Approximately 2,000 respondents per wave. UK level data are weighted to represent the adult population of the UK by age, gender, region, social grade, working status and housing tenure. Future measures ask consumers if they think things will get better or worse over the next 12 months.

Summary

Rises in financial difficulty have plagued the start of 2025. Whilst we saw small decreases in financial difficulty this month, many more households are struggling with their households than at the end of last year. Similarly, consumer confidence has improved over the last month, but this is from record lows. Consumers remain deeply pessimistic about the future UK economy. The government must consider interventions that will ease household costs, improve consumer confidence and restore faith in markets. 

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 14th of May.  A sample of 2,074 UK adults were surveyed online and weighted to be nationally representative.