Consumer trust in the UK’s economic future has plunged to its lowest level in two years, according to recent data from Which?. The watchdog reports a sharp downturn in sentiment, echoing the mood seen back in early 2023 during the height of the cost-of-living crisis.
Confidence began to slide significantly last autumn and reached worrying lows between February and May this year. Global pressures such as shifts in US trade policy further fuelled unease across households.
Though there has been a slight recovery since those months, the figures still point to a steep year-on-year decline. Which?’s Consumer Insight Tracker reveals that the overall confidence score has dropped by a staggering 31 points, from minus 9 (May–July 2024) to minus 40 (May–July 2025).
A concerning 56% of the public now believes the economy will deteriorate, with only 16% expressing hope for improvement.
Among the groups most affected, pensioners have reported a dramatic dip in confidence. Their outlook on the economy nosedived from minus 5 a year ago to minus 63 in the latest period.
The sharp fall coincided with the Government’s now-reversed decision to scrap the winter fuel allowance for most pensioners—a move that appears to have left a lasting scar on confidence levels.
Despite the eventual U-turn, the damage seems done. Trust has not returned.
While the immediate crisis may have eased, millions are still battling to make ends meet. In the month leading up to July 18, around 2.1 million households missed at least one crucial payment—covering rent, mortgage, utility bills, credit cards or loans.
At the same time, nearly half of all UK households (49%) had to make at least one compromise to manage essential costs. These included cutting back on basic needs, dipping into savings, selling belongings or resorting to borrowing.
“Consumer confidence in the future of the UK economy has dropped alarmingly over the last year. The government has rightly focused on growing the economy and raising living standards, but in doing so, it must not overlook the importance of consumer protections in restoring confidence.
People are sick to the teeth of having to dodge fraudsters when shopping online, watching out for rogue traders when making home improvements and needing to keep an eye out for dodgy pricing practices which mean that offers aren’t as good as they first appear.
The right consumer protections give people the confidence to spend, and the government must place these protections at the heart of its plans to grow the economy,” said Rocio Concha, Which?’s director of policy and advocacy.
The figures show that while inflation may be cooling and the economy shows some signs of recovery, the emotional and financial toll on UK households is far from over.
The coming months will be critical as the government aims to restore trust not just through policy, but by protecting and empowering consumers where it matters most.
With such a widespread sense of economic fragility, rebuilding confidence won’t be quick. But it’s clear that for many, it’s never been more needed.
