Consumer confidence falls as households cut back

Consumer confidence in the UK has taken another hit, as more people tighten their belts and worry about what lies ahead.

New figures from GfK’s Consumer Confidence Index show that confidence dropped by one point in July, with fewer people feeling positive about their finances over the next 12 months. Confidence in the wider UK economy also remains low, as families continue to feel the pressure from rising prices and ongoing uncertainty.

Even events like the general election and England’s success in the Euros haven’t shifted the mood much. Instead, many households are choosing to pause big purchases and focus on the essentials.

KPMG research backs this up – four in ten people say they’ve cut non-essential spending further in 2024, thanks to higher living costs, mortgage increases, and rent rises.

If you’re one of them, you’re not alone. And while things might feel tight right now, there are practical steps you can take to steady your finances and feel more in control.

1. Check in on your spending regularly

One of the best ways to stay on top of your money is to track it regularly – even just once a week.

• Use your online banking app or our free budgeting tool to spot patterns in your spending.
• Look out for payments you no longer need, like unused subscriptions or duplicate services.
• Compare spending month to month to see if there are areas where you’re overspending without realising.

It doesn’t have to be perfect. Just getting into the habit of checking in can help you feel more confident with your money.

2. Take action if your bills are too high

If your energy or water bills are creeping up or getting unmanageable, don’t wait until you fall behind. Help is out there – and it’s often quicker and easier than you think.

You could be eligible for:

• A social tariff or reduced bill through your supplier
• Emergency help from a hardship fund or local welfare scheme
• Payment breaks or tailored repayment plans if you're struggling

3. Make a plan if you’re relying on credit

Using credit cards, overdrafts or Buy Now Pay Later (BNPL) to cover essentials is a sign that your budget might need some attention. If you’re only making minimum payments or borrowing from one pot to pay another, it’s time to make a plan.

We can help you understand your options – from budgeting help to formal debt solutions. You won’t be judged, and you don’t have to figure it out alone.

4. Check if you’re missing out on extra income

Lots of people are missing out on benefits or financial support they’re entitled to – including carers, part-time workers, renters, and those living with health conditions.

Our free benefits check takes minutes and could reveal extra income you're not currently claiming. It also highlights council tax reductions, housing support or help available from the household support fund. And you can also use the Turn2us tool to see if you’re missing out on grant support.