Financial confidence in 2026: How are Britons coping with the increased cost of living?

Rising energy bills, geopolitical instability, and the upward movement of inflation have meant that financial confidence has seldom been out of the news in the past few years. New YouGov data shows the key areas where more of the public may be feeling the pinch. 

The areas where consumers feel least confident are:

• Savings, where 35% are not very or not at all confident.
• Ability to cover unexpected expenses, where 31% say the same.
• Financial security in the year ahead, where 30% are not confident overall. 

They are more confident in their ability to cover everyday expenses (64% very/fairly confident), energy/utility bills (62%) and housing costs (52%). 

When asked what coping mechanisms they use to manage when finances get tight, a third cite credit cards (34%) and a quarter say they use savings to cover shortfalls (23%). 

Some 17% say they rely on BNPL services, and 13% use overdrafts. Another 12% say they borrow from family or friends, with one in ten (10%) using instalment plans offered by retailers. When asked about the financial adjustments they may or may not have made, 16% say they have made long term adjustments and the same proportion say they have made short term adjustments. Some of these adjustments may have included delayed life decisions. Our data shows that 18% delayed a big purchase such as a car, 7% delayed changing jobs, and another 7% delayed moving home.