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.