Three in 10 put off making a major purchase because of financial worries, Which? finds
According to Which?’s monthly consumer insight tracker, three in ten (28%) UK adults said they did not make major purchases - including items such as cars, furniture and electronic devices - in the last month because they were worried about their future household finances.
This comes as the estimated number of households missing essential payments - such as rent or mortgage payments, utility bills, credit card or loan payments - rose to 2.1 million households in the month to 17 February. This is an increase from the estimated 1.6 million who missed payments in January.
The proportion of mortgage holders in Which?’s survey who missed a mortgage payment particularly increased in the last month, to 3.4 per cent. This is the highest level of missed mortgage payments since August 2024 and suggests many are still struggling to make ends meet due to ongoing cost of living pressures.
An estimated 14.3 million households (51%) made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month. Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing. This is higher than the 45 per cent seen in January.
These financial strains and anxieties about the future are not just a blip. Consumer confidence in their future household finances has remained low for the past seven months and has not exceeded a net score of zero since July 2024.
This month, consumer confidence in future household finances was scored at -8, with three in ten adults (31%) expecting their finances to worsen and only a quarter (23%) saying they think their finances will improve.
Consumer confidence in the future UK economy has also remained below zero since July 2024, scoring -40 this month. This marks a gap between consumers’ confidence in their own household finances and their confidence in the future economy.
Three in 10 (29%) said they believe that their future finances will get better or stay the same but the economy will worsen.
One woman in her 20s from the East Midlands said: “Most of the household is due for a salary raise which surpasses inflation. I am worried about the trajectory of the economy due to booming house, food and energy prices.’’
A man from the North West said: “We will have an increase on our state pensions due to the triple lock. The UK economy will worsen due to trade restrictions and tariffs imposed by the USA.”
As it pushes to grow the economy, the government must not overlook consumers. Well-designed laws and regulations that empower people to switch from bad to good services and give them confidence to try new products without fear of being ripped off are essential to boosting consumer spending and creating dynamic markets.
Rocio Concha, Which? Director of Policy and Advocacy, said:
“Our research shows that low consumer confidence is having an impact on household spending - with three in 10 delaying a major purchase due to financial worries.
“The government must place consumers at the heart of its plans to grow the economy. It can boost consumer sentiment by enforcing well-designed laws and regulations that allow people to switch to better services and give them confidence to try new products without fear of being ripped off.”
-ENDS-
Notes to editors
Which? - Consumer policy for economic growth
Which? advice if you’re struggling to pay your bills
If households are struggling to afford their mortgage, they should speak to their lender as soon as possible. Lenders should be understanding if income levels have changed – for example, because someone has lost their job – and may offer a payment holiday, extending the term to lower the monthly payment or a temporary switch to interest-only repayments. Renters should speak to their landlords about their situation and ask if they are able to offer temporary help. More information here and here.
Consumer Insight Tracker
The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.
Which? estimates that between 6.4 per cent and 8.7 per cent of households missed or defaulted on a housing, bill or credit payment in the last month to February 17th, with an average estimate of 7.6 per cent. Based on the survey and the ONS estimate for the number of households in 2023 of 28.4 million, this scales up to between 1.8 million and 2.5 million households missing a bill payment in the last month, with an average estimate of 2.1 million.
The consumer insight tracker indicates that between 48 per cent and 53 per cent of households made at least one adjustment to cover essential spending in the last month to February 17th with an average estimate of 51 per cent. Based on the survey and the ONS estimate for the number of households in 2023 of 28.4 million, Which? estimates that between 13.7 million and 14.9 million households made an adjustment to cover essential spending in the last month, with an average estimate of 14.3 million.
You can view more consumer insight tracker data and download graphs here.
About Which?
Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen.
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