Two in five people ‘expect finances to worsen in year ahead’

A survey commissioned by StepChange Debt Charity indicates that two-fifths (40 per cent) of people expect their financial situation to worsen over the next 12 months.

More than three-fifths (63 per cent) of those expecting their finances to deteriorate highlighted rising energy bills, while two-thirds (66 per cent) pointed to the general higher cost of living.

Around one in six (17 per cent) adults said that they always worry about money, while a further 55 per cent say they often or sometimes worry about finances.

More than two-fifths (43 per cent) of people said they worry more now about money than they did this time one year ago.

Read more: UK economy set to return to growth despite budget caution

Read more: Food inflation to continue falling, says supermarket boss

Women, in particular, are more likely to feel the financial strain as nearly half (47 per cent) report worrying more about money than they did a year ago, compared with around two-fifths (39 per cent) of men.

StepChange said that it tends to see an increase in people seeking free debt advice in January.

Nearly 100,000 people have visited StepChange’s website since the start of 2026, the charity has reported.

On January 5, the first Monday of 2026, StepChange had its busiest day in more than a year.

Some 800 clients went through debt advice, which is higher than any day in 2025, the charity said.

For some people, money worries intensified over Christmas, with nearly 4,000 people visiting StepChange’s website on Christmas Day.

Vikki Brownridge, CEO at StepChange, said: “Across the UK, many people are still feeling the pressure of rising living costs, from everyday essentials to stubbornly high energy bills.

“We also know that it’s common for people to feel worried about their finances after the festive season is over, particularly if they’ve relied on credit or stretched their budget to cover costs. As we head into 2026, more people are reporting worries about how they’ll manage their money compared with this time last year – a clear sign that the financial pressures households face are far from temporary.

“We know from over 30 years of providing free debt advice that taking early, practical steps can make a real difference to your situation. If you’re finding it harder to keep up with bills or credit commitments, it’s important to talk to your creditors as soon as possible. They have a responsibility to support you if you’re in financial difficulty, and reaching out early can open the door to options that ease the pressure.”

The charity suggested setting a realistic budget and looking through recent statements for subscriptions or direct debits which are no longer used.

StepChange has a free benefits calculator to help people identify any additional income you could claim in the short term, which may make it easier to tackle debts faster.

It also urged people who are struggling to seek free, impartial support.