Financial wellbeing in October 2025
Summary
- The proportion of households missing a housing, bill, loan or credit card payment fell to 5.5% in the month to October 17th, the lowest level this year.
- In contrast, the proportion of households making at least one adjustment to cover essential spending hit the highest level this year (52%), indicating more households are becoming sensitive to the cost of living.
- Consumer confidence remained unchanged compared to last month. It remains the case that more households think their finances will worsen in the coming 12 months than think they will improve, and the cost of living and worries about future tax increases are the main reasons for this.
A mixed picture for financial difficulty
This month’s financial difficulty figures offer two record levels for the year, but in opposite directions. Whilst the proportion of UK households who reported missing a housing, bill, loan or credit card payment hit its lowest level this year in the month to October 17th (5.5%), the proportion of households making at least one adjustment to cover essential spending hit the highest level this year, at 52%.
Missed payments fell in the month to October 17th, while financial adjustment rose
The missed household payments rate of 5.5% is a decrease by 2.2 percentage points from last month. It is the lowest level in over four years (4.5% in August 2021), albeit similar levels were recorded throughout 2024 (5.8% in January 2024, 5.7% in October and November 2024).
While fewer households appear to be facing the more severe financial difficulty of missing payments, the rise in financial adjustments indicates that more households are sensitive to the cost of living. Over half (52%) of UK households reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines. The most common adjustments were dipping into savings (30%) and cutting back on essentials (28%). Cutting back on essentials was highest for those on low incomes, with over a third of households reporting to do so (35%).
Cutting back on essentials by income
Data for demographic groups are unweighted, and sample sizes vary across survey waves. Typically, each wave includes between 637 and 785 respondents in the low income band, 760 to 869 in the middle income band, and 315 to 458 in the high income band. Income bands are defined based on annual household income and differ before and after 2022. Before 2022, the low income band includes those earning up to £21,000, the middle income band ranges from £21,001 to £41,000, and the high income band includes those earning over £41,000. From the start of 2022 these thresholds shift: the low income band includes those earning up to £28,000, the middle income band ranges from £28,001 to £48,000, and the high income band includes those earning over £48,000.
Consumer confidence remained the same this month
This month we saw no change in two out of three of our consumer confidence metrics;
- confidence in consumers’ current household financial situation remained at +22,
- future UK economy confidence remained at -50.
Consumer confidence in their future household financial situation fell by two points this month to -15. While this is a small change, it is the fifth consecutive month confidence has fallen and is eight points down from five months ago. This score of -15 reflects that one in five UK adults (20%) think their household situation will get better over the next 12 months and 34% think it will get worse.
Consumer confidence in their future household situation continued to fall
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.
When we asked the 34% of respondents why they think their household situation will worsen over the next 12 months, over half of them mentioned issues related to the cost of living, such as food prices, bills or inflation.
“The cost of living is too high; it's a struggle to make ends meet. Food shopping is stressful as everything costs so much and paying bills, the cost of everything is rising. I think this will keep continuing to get worse.” Female, 25-34, Scotland.
“I think my wage will not increase by much but all my bills and food will increase massively.” Female, 45-54, Yorkshire & Humberside.
Taxes and government policies were also widely mentioned, with roughly a third of respondents who think their financial situation will worsen pointing to already high or expected higher taxes following the autumn budget or other government policies.
“The forthcoming budget is likely to make my financial situation worse.” Male 65+, Yorkshire & Humberside.
“The announcements in the next budget will likely be a raise in taxes. This means I will have less disposable income.” Male, 44-54, London.
This was often mentioned in tandem with rising prices.
“I'm anticipating the budget will include tax rises. This along with the increasing cost of goods and services is going to make things more difficult.” Male, 55-64, North West.
“Tax changes in the budget are a worry. A cold winter will increase fuel costs.” Female, 65+, North West.
Reasons people think their household financial situation will worsen
Most common words written (excluding non-descriptive words). Base: Those who think their household financial situation will worsen and gave a reason (692). Question: You said you think the financial situation of your household will get [a little/a lot worse] over the next 12 months. Why do you think this?.
Summary
It is encouraging to see a fall in the proportion of households missing a household payment. While this indicates fewer households are facing more severe difficulties with their finances, rises in consumers dipping into their savings or cutting back on essentials are worrying signs as we approach the winter months. Additionally, many consumers are concerned that their situation will worsen due to continued rises in the cost of living or expected tax rises in the upcoming budget.
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 17th and 19th of October. A sample of 2,103 UK adults were surveyed online and weighted to be nationally representative.