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UK Households Show Financial Resilience Amid Rising Costs

10/12/2025

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Summary

Story summary

UK households report strongest financial health in over 20 years, with debt at 117.1% of income, the lowest since 2002.
The decline follows spending restraint and is influenced by rising wages amid inflation and higher interest rates.
Consumer groups warn of a "poverty penalty" as energy costs burden low-income families.
Many households are repaying energy debts from previous crises, while price cap increases further strain finances.

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Story summary

UK households report strongest financial health in over 20 years, with debt at 117.1% of income, the lowest since 2002.
The decline follows spending restraint and is influenced by rising wages amid inflation and higher interest rates.
Consumer groups warn of a "poverty penalty" as energy costs burden low-income families.
Many households are repaying energy debts from previous crises, while price cap increases further strain finances.