HALF of UK households are struggling to afford everyday essentials as the cost of living continues to squeeze their budgets.
Around 49% of households are being forced to dip into savings, sell possessions or take other measures to make ends meet, according to consumer group Which?.
A quarter of households now regularly dip into their savings to bridge the gap between their income and the rising cost of essentials.
This is a big increase in comparison to the end of 2025, when financial stress appeared to be declining.
Meanwhile, confidence in the future of the UK economy plummeted by 13 points to minus 56 in the month to March 13, the lowest level recorded since the end of 2022.
Which? said the score reflected “a deep-seated pessimism across the country”.
Approximately 67% of UK adults now expect the economy to worsen over the next 12 months, while just 12% think it will improve.
Confidence in the future of household finances has also hit its lowest level since last April, falling five points to minus 15.
Sue Davies, head of consumer protection policy at Which?, said: “Households face a daunting combination of rising prices and global instability.
“Millions are now being forced to dip into savings or sell possessions just to keep up with the cost of everyday essentials. Pressure on budgets is becoming unsustainable for many.”
If you are struggling to keep up with your broadband, council tax or water bill then speak to your suppliers as soon as possible.
You can also get help by contacting a free debt advice service such as Money Wellness or Turn2us.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Free cash schemes if you’re struggling
Many of us are still struggling with the high cost of living – but there’s help you can get.
New or expectant parents can get up to £442 a year to spend on food through Healthy Start scheme.
Some new parents can get £500 via the Sure Start Maternity Grant. The money is designed to help you cover the costs of having a child.
Councils also offer support through the welfare assistance schemes, to help cover the costs of essentials, from buying new furniture to food vouchers.
The amount you can get varies but an investigation by The Sun found that hard-up Brits can apply for help worth up to £1,000.
Discretionary Housing Payment is a pot of money handed out by councils to those struggling to keep a roof over their heads.
A scheme is available for those who find themselves unable to cover housing costs, though the exact amount varies as each local authority dishes out the cash on a case-by-case basis.
Many energy forms offer grants to help cash-tight customers. The exact amount varies depending on your supplier and you circumstances, but could be as much a £2,000.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to.
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
