Two thirds of UK adults worry about finances ahead

Two thirds of UK adults are concerned about their finances in the months ahead, according to a survey by TSB and Lightning Reach of more than 2,000 adults.

The survey found 38% said their finances had worsened compared with the same point last year, while 31% had cut back on essentials such as food, heating and gas to make ends meet. A quarter had used savings to cover everyday costs, 16% had borrowed from family or friends, and 15% had missed or delayed a bill or payment.

The figures suggest household budgets remain under pressure, even as some people keep a closer watch on their money. Almost half of respondents said they budget every week, including 10% who do so every day. Another 32% budget once a month, while 12% said they never budget.

Debt pressure

The picture on borrowing was mixed. While 41% said they had no debt and 33% said their debt was under control, 12% said it was becoming difficult to manage and 6% said they had fallen behind on payments.

Among the 51% who said they had debt, 42% said it had increased and 25% said it had fallen, indicating debt pressure is worsening for a sizeable minority.

Energy costs also remain a major burden. A third of respondents said they spend between 5% and 10% of household income on energy bills, 28% spend between 11% and 20%, and 17% spend between 21% and 30%. One in 50 households said they spend more than 30% of their income on energy.

Separate data from Lightning Reach showed 66% of its 300,000 customers are struggling with home energy costs. Of those customers, 78% have a disability and 39% are single parents.

Barriers to help

The research also highlighted why financial support often goes unused. A quarter of respondents said they would not feel comfortable asking for support even if they needed it, while 35% said they would not know where to turn for help.

Almost one in five said they had given up when applying for support. Among them, 38% said the process was too long and complicated, while 32% said they felt too embarrassed to seek help.

The issue is significant because large sums of support remain unclaimed. TSB and Lightning Reach said £23 billion in benefits, grants and other support goes unclaimed each year.

Over the past five years, the Lightning Reach portal has connected users with £25.5 million in grants. More than a quarter of recipients received help with energy and bills, 11% received support for furniture and appliances, and 9% received help with food and essentials. The average award was £610.

Talking finances

The survey found many people still struggle to talk openly about money problems. While 66% said they were confident discussing their finances, 34% said they were not very confident and 13% said they were not confident at all.

Charities and debt specialists were the preferred option for discussing financial concerns, chosen by 88% of respondents, followed by banks and partners, both on 87%. By contrast, 31% said they were not confident speaking with family and 32% were not confident discussing financial matters with friends.

Ren Yi Hooi, Founder and Chief Executive of Lightning Reach, said: “With many households facing growing financial challenges, we aim to make it as quick and seamless as possible to access support in one place, breaking down barriers such as stigma, repetitive form filling and lengthy paperwork.

“There’s much more support out there than people realise, so it’s worth taking 10 minutes to check whether you might be eligible for one or more of the 2,500+ schemes on the Lightning Reach portal.”

Keely Newman, Head of Vulnerable Customers at TSB, said: “With concerns over finances rising, we are always pleased to hear of our customers accessing vital support through Lightning Reach, which can make all the difference to people’s budgets and wellbeing.

“If you find yourself in need of support, we’d encourage households to check their eligibility for a grant and contact their bank or a charity for advice and debt management.”

StepChange Debt Charity said early support can change outcomes for people under strain.

Vikki Brownridge, Chief Executive of StepChange Debt Charity, said: “Uncertainty around household finances is rising, adding to several years of cost-of-living pressures that haven’t gone away. Early intervention can make a real difference for people struggling with debt, and it’s vital that people know where to access support. In fact, 85% of StepChange clients say they would have sought help sooner if they could go back in time.

“For anyone struggling with debt, it’s important to speak to your creditors, who can offer tailored support and guidance. Free, impartial and non-judgemental debt advice is also always available from charities like StepChange.”