Key findings:

  • 36% of UK adults expect to be worse off in 2026, compared with 22% who expect to be better off, highlighting an overall cautious financial outlook.
  • 51% say they have a budget for 2026 (up from 46% in 2025), showing that financial planning is becoming more common.
  • 61% of those budgeting say their main reason is to ensure they can cover essentials like food, rent and bills.
  • 39% of budgeters use manual tools like spreadsheets while only 9% use budgeting apps.
  • 62% of those expecting their finances to worsen plan to cut back on eating and drinking out.

As UK consumers look ahead to 2026, more expect their financial situation to decline than improve. New YouGov data shows how people plan to manage their money, where they intend to cut back, and which categories they still expect to prioritise.

For brands across travel, retail, beauty, food and drink, financial services and subscription-based sectors, the message is one of recalibration rather than retreat.

UK financial outlook 2026: More adults expect to be worse off than better off

When asked about their expected financial situation in 2026, 22% of UK adults say they expect to be better off, while 36% expect to be worse off. A further 37% believe their situation will stay about the same.

Age differences are pronounced. Among 18–24-year-olds, 41% expect to be better off and 17% worse off. This makes them the most likely age group to anticipate improvement. Expectations shift with age, and among those aged 55 and over, 11% expect to be better off while 44% expect to be worse off. Women are slightly more likely than men to expect their finances to worsen (38% vs 34%).

These differences suggest that financial expectations vary significantly by life stage, which has implications for how different audiences respond to pricing, promotions and long-term value.

Budgeting in 2026 vs. 2025

Financial expectations are translating into greater use of budgets. Just over half of UK adults, 51%, say they have a budget for 2026. This represents an increase from 46% who say they had a budget in 2025. Two in five (40%) say they do not have a budget for 2026.

Budgeting is particularly common among younger adults. More than half of 18–24-year-olds (58%) and 57% of 25–34-year-olds say they have a budget in place. The share of those aged 55 and over who have a budget is not far behind (45%), but at the same time 50% say they do not have a budget. Women are more likely than men to budget, at 55% compared with 47%.

Why UK consumers are budgeting: Covering essentials, saving and debt management

Among those who are budgeting in 2026, the primary motivation is to ensure they have enough money for essentials such as food, rent and bills (61%). More than two-fifths (43%) say they want to increase savings in general, and 41% are budgeting to stop over-spending. Around a third (34%) are saving for something specific such as a house deposit, holiday or car, while 17% are budgeting to manage debt.

Older consumers are especially likely to cite ensuring coverage of essentials, with 66% of those aged 45–54 and 64% of those aged 55 and over selecting this reason. Younger adults are more likely to be saving in general and for a specific goal. Managing debt is most common among those aged 35–44 (27%).

These patterns point to a combination of day-to-day financial management and longer-term goal planning across the population.

Budgeting tools in 2026: Spreadsheets vs budgeting apps in the UK

Despite the growth of digital finance tools, manual methods remain common. Nearly two-fifths of UK adults (39%) who have a budget this year say they use spreadsheets or similar tools. By comparison, 9% use a budgeting app and 8% use their bank’s financial management service. More than a third, 36%, say they are not using any specific tool to help manage their finances.

Younger adults are more likely to use digital options, with 21% of 25–34-year-olds and 16% of 18–24-year-olds using budgeting apps. However, even among these groups, spreadsheets remain common.

UK consumer spending cuts in 2026: Eating out, fashion and subscriptions most affected

Financial expectations are closely tied to intended spending changes in 2026. Among those who expect their finances to worsen, intended cutbacks are widespread. Nearly two-thirds (62%) say they will cut back on eating and drinking out, 52% on clothing and fashion, and 47% on everyday conveniences. Around two in five plan to cut back on subscriptions (39%) and holidays (40%), while 44% will reduce spending on events and days out. A third say they will cut back on health and beauty (33%) and groceries (33%), and 22% on wellness. Around 16% plan to reduce housing or bill-related spending. Only 13% say they will not be cutting back in any area.

By contrast, among those who expect their financial situation to improve, 44% say they will cut back on eating and drinking out, 32% on everyday conveniences such as takeaway coffee or taxis, and 28% on clothing and fashion. One in four plan to cut back on subscriptions (25%), while 23% will reduce spending on events and days out and 22% on holidays. Around 17% intend to cut back on health and beauty and the same proportion on groceries, while 11% will reduce wellness spending and 10% housing or bills. Nearly a third, 32%, say they will not be cutting back in any area.

Where UK consumers plan to spend more in 2026 despite financial pressure

At the same time, planned spending increases remain visible. Among those who expect their financial situation to improve, 24% plan to spend more on holidays and 15% on groceries. One in nine (11%) intend to spend more on events and days out, and the same proportion on housing or bills. Around 10% plan to increase spending on eating and drinking out, 9% on wellness and 8% on health and beauty. Smaller proportions expect to spend more on clothing and fashion (7%), subscriptions (5%) and everyday conveniences (4%). However, 46% say they will not be spending more in any area.

Among those who expect their finances to worsen, planned increases are less common. Roughly 14% say they will spend more on groceries and 12% on holidays. Around 10% anticipate higher housing or bill-related spending, while 4% expect to spend more on events, eating out or wellness. Just 2% say they will increase spending on health and beauty, clothing or subscriptions. Nearly two thirds, 63%, say they will not be spending more in any area.

These findings suggest that while financial expectations drive restraint in many areas, some planned increases reflect both cost pressures and selective prioritisation.

Overall, the data shows a UK consumer landscape shaped by divergent financial outlooks. In 2026, expectations about personal finances act as a key lens for spending decisions, influencing both everyday purchases and longer-term priorities across sectors.

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Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online between 6-9 February 2026, with a nationally representative sample of 2,087 adults (aged 16+ years) in Great Britain, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, education, region and social grade to be representative of all adults in Great Britain (16 years or older) and reflect the latest ONS population estimates.

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