Tightening the purse strings: where Brits plan to cut back in 2026

With rising living costs and worries about global conflict pushing prices higher, many people in the UK are preparing to spend less.

The UK Financial Outlook 2026 study was carried out in February with a sample of 2,087 adults. It shows that many households are feeling uncertain about their finances.

The YouGov data suggests more people expect their financial situation to get worse than better over the coming year.

Around 22% of UK adults say they expect to be better off, while 36% think they will be worse off. Another 37% believe their finances will stay about the same.

Eating out is the first thing to go

For people who expect their finances to get worse, cutting back on non-essential spending is already on the cards.

The most common plan is to eat and drink out less, with 62% saying they will cut back in this area.

Other popular areas for savings include:

• clothing and fashion – 52%
• everyday conveniences, such as takeaway coffee or taxis – 47%
• events and days out – 44%
• holidays – 40%
• subscriptions like streaming services – 39%

Even some everyday spending could fall. Around a third (33%) say they will cut back on groceries, and the same number say they will spend less on health and beauty.

Meanwhile 22% plan to reduce spending on wellness, and 16% will try to cut housing or bill costs where possible.

Only 13% say they won’t cut back in any area.

Even those expecting to be better off are being careful

Even people who think their finances will improve are still planning to spend more carefully.

Among this group:

• 44% will cut back on eating and drinking out
• 32% will spend less on everyday conveniences
• 28% will cut back on clothing and fashion

Others plan to reduce spending on:

• subscriptions – 25%
• events and days out – 23%
• holidays – 22%

Smaller numbers say they will cut back on health and beauty (17%), groceries (17%), wellness (11%), and housing or bills (10%).

However, this group is less worried overall. Around 32% say they don’t plan to cut back at all.

Careful spending ahead

Overall, the results suggest many people in the UK are thinking carefully about where their money goes.

Whether they expect their finances to improve or worsen, cutting back on meals out, fashion and leisure spending is high on the list for 2026.