The cost of living crisis has been raging on since 2021, and it’s not showing any signs of letting up. But as the festive season fast approaches, millions are cutting back on essentials to make ends meet, with some dipping into their savings or selling their belongings just to stay afloat.
According to Which?’s latest Consumer Insight Tracker, up to 14.8 million UK households (52%) have had to make spending adjustments in recent weeks – the highest level recorded in 2025 so far.
Here are some of the biggest areas where people are making changes:
1. Spending savings
30% of families are dipping into their savings to pay for everyday essentials. But with less money for emergencies or future plans, it’s a risky move that could leave you with no choice but to turn to borrowing in the event of an unexpected expense. It can also leave you with less money for your future, whether you’re planning a family holiday, need to fund a home improvement, or you’re setting money aside for retirement.
2. Cutting back on essentials
In what is perhaps the most worrying development, 28% of households are cutting back on essentials due to having no room in their budget to pay for them. We’re not talking about luxuries, but necessities like groceries, school supplies, and medicine. This figure rises to 35% for the lowest-income families, meaning over a third of the country’s poorest households are going without things they need to maintain a basic standard of living.
3. Paying closer attention to energy bills
Utility bills are a key concern for most of us at this time of year, but with the energy price cap up 2%, people are paying closer attention to their energy consumption than ever before. In response to rising costs, households are switching off lights when not in use, comparing prices across providers, and layering up instead of putting the heating on.
4. Avoiding large purchases
As financial uncertainty grows and 34% of UK households expect things to get worse before they get better, many are steering clear of making major financial commitments. This comes as consumer confidence falls for the fifth consecutive month, currently sitting at -17. From buying a new car to replacing a leaky boiler, some are simply too scared to spend money on something that isn’t a priority.
5. Selling unwanted belongings
Millions have resorted to selling unwanted belongings to raise some extra cash for everyday essentials, including things they’d rather hold on to. But with more households finding themselves in a position where they’re forced to sell a beloved item or miss a mortgage payment, some are simply doing what they must to survive the cost of living crisis.
