Consumer confidence in the UK has slumped to its lowest point since the peak of the cost of living crisis in late 2022, as households brace for further economic hardship driven by global instability and domestic financial pressures.
New figures from the consumer group Which? reveal that nearly two-thirds (63%) of Britons believe the economy will deteriorate over the next 12 months, with just 11% holding an optimistic view.
The organisation’s consumer confidence tracker dropped by seven points in April to -53—the weakest reading since December 2022, when inflation soared above 10%, far exceeding the Bank of England’s 2% target.
The latest downturn in sentiment has been attributed to a combination of global and domestic factors. Concerns over Donald Trump’s proposed tariffs and wider US trade policy, along with the ongoing war in Ukraine, have left 67% of people feeling negative about the UK’s economic outlook.
In addition, 63% cited rising prices, and 60% pointed to recent tax policy changes as key reasons for their pessimism.
The survey findings echo similar warnings from data firm GfK, whose consumer insights director, Neil Bellamy, highlighted a string of cost hikes in April.
These include increases in utility bills, council tax, road tax, and stamp duty—exacerbating fears of a resurgence in inflation, especially if US tariffs are implemented.
The Which? report also shows that consumer confidence in household finances has declined significantly. Confidence in future finances dropped by 10 points to -19, the lowest since July 2023, while confidence in current household finances fell by six points to +21.
Despite a relatively steady number of households falling behind on essential payments—such as rent, mortgages, energy bills, and credit obligations—an estimated 1.9 million homes missed at least one payment in the month leading to 11 April. This represents 5.6% to 7.7% of UK households.
Renters remain particularly vulnerable, with the proportion of tenants missing rent payments rising to 4.7% last month.
The figures underscore the ongoing struggle many face in trying to manage household budgets amid persistently high living costs.
