Financial wellbeing in April 2025
Summary
- Consumer sentiment deteriorated in April across all metrics. Most prominently confidence in the future UK economy decreased to -53 and confidence in future household finances decreased to -19.
- Global events were the most commonly cited reason for consumers’ pessimism. Of those who believe the UK economy will worsen in the next twelve months, 67% stated this as a reason why.
- Households’ financial adjustment rate decreased to 45% and the missed payment rate remained at 6.7%. However, the proportion of renters who missed a rent payment in the month to April 11th increased to 4.6%.
Consumer confidence worsens
This month, consumers expressed lower confidence across all three metrics that we measure on our monthly tracker.
Consumer confidence in the future UK economy fell by seven points to -53. While 64% of consumers believe the UK economy will get worse in the next twelve months, only 11% believe it will get better. This is the lowest level of consumer confidence in the future UK economy since December 2022 at the height of the cost of living crisis when inflation was greater than 10%.
Consumers also reported feeling less confident about their future household finances, with this confidence score falling by ten points to -19, the lowest level reported since July 2023.
Meanwhile, consumer confidence in their current household finances decreased by six points to +21.
Consumer confidence in the future UK economy falls to -53
Source: Which? Consumer Insight Tracker, Online Poll weighted to be nationally representative, approx 2,000 respondents per wave.
The majority of those pessimistic about the future UK economy said global events were a factor
This month we asked what is driving respondents’ negative sentiment towards the future UK economy. The most commonly cited factor, given by 67% of those who believe those who believe the UK economy will worsen in the next 12 months, was global events such as the Ukraine war and US trade policy.
The survey was conducted just over a week after President Trump announced the imposition of 'Liberation Day' import tariffs, and the findings suggest this likely contributed to a decline in consumer confidence.
Other common cited factors include changes in prices (63%) and government tax changes (60%).
Two thirds (67%) of consumers who are pessimistic about the future UK economy, cite global events as a reason.
Source: Which? Consumer Insight Tracker. Bases: Consumers who think the UK economy will get worse (1,097) Consumers who think the UK economy will get worse (1342)
Financial difficulty slightly decreases
This month the proportion of households making at least one adjustment to cover essential spending decreased by five percentage points to less than half (46%). Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing.
The proportion of households missing at least one payment this month has remained consistent to last month at 6.7%. Looking more closely at the type of missed payments, the missed rent payment rate increased to 4.7%.
Methodology
The fieldwork was conducted by Yonder on behalf of Which between the 11th and 13th of April. A sample of 2,083 UK adults were surveyed online and weighted to be nationally representative.