UK households bracing for new cost of living crisis, report finds

The proportion of people planning to drive less often to save money on rising fuel costs has doubled from 12% to 24% since January 2026. Photograph: Maureen McLean/Shutterstock

British households are bracing for a new cost of living crisis, as the impact of the Middle East conflict dampens confidence in the economy and personal finances, a survey has suggested.

Consumer confidence in the UK has dipped over the last three months at the fastest rate since June 2022, when inflation in the UK was soaring as a result of Russia’s invasion of Ukraine and the spike in commodity prices.