More than half of households have been forced to ‘make adjustments’ just to cover everyday costs, a new survey has shown. Many believe their situation will only worsen, and some are deeply concerned about potential tax rises in the Autumn Budget on November 26.
Research by Which? found that in the month leading up to mid-October, 52 per cent had to cut back on essentials, dip into savings, sell possessions or borrow to cover essential daily expenses such as utility bills, housing costs, groceries, school supplies and medicines.
If these figures were projected across the UK, Which? estimates that 14.8 million households would be affected – the highest level since December 2024. However, it also noted that the proportion of households that missed at least one essential payment, such as rent or mortgage payments, utility bills, credit card or loan payments, decreased to 5.5 per cent from 7.7 per cent in September. Nationally, this would be equivalent to an estimated 1.6 million households.
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Despite fewer households reporting missed payments, the rise in financial adjustments suggests that more households are feeling the pinch of the cost of living ahead of the colder weather and festive period expenses, according to the consumer group.
A fifth (20 per cent) of those surveyed believe their household situation will improve over the next 12 months, while about a third (34 per cent) think it will worsen. When respondents were questioned about why they believed their household circumstances would deteriorate over the coming 12 months, most pointed to cost-of-living concerns, including food prices, utility bills, or inflation, the consumer organisation reported.
Tax matters and government policies were also frequently referenced in the consumer insight tracker, with some participants expressing worries about potential tax increases, Which? noted.
One Scottish woman told researchers: “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.”
Which? stated that individuals who are unable to afford or are struggling with essential payments, such as energy, credit card or mortgage costs, should contact their provider straight away for assistance.
Rocio Concha, Which? director of policy and advocacy, said: “Our research shows that millions of households are struggling to cover the costs of everyday essentials such as utility bills, mortgage and rent payments and the weekly shop.
“With the festive season fast approaching and the weather starting to get colder, the added pressures of Christmas shopping and keeping the house warm and cosy will only add to households’ financial stresses. We’d encourage anyone who’s struggling to seek free debt advice and to reach out to their bill provider for help.”
The survey, conducted among more than 2,100 people across the UK, took place between October 17 and 19.
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