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UK Household Finance Report 2026

SupportFund analysis and compilation of 50 official UK statistics on cost of living, inflation, incomes and savings, benefits, disability support, rent, energy debt and consumer credit, each with its original source and reference period.

Published 12 August 2026 · Updated 12 August 2026 · SupportFund analysis of ONS, DWP, Ofgem and Bank of England data · First edition · Last reviewed 12 August 2026

Executive summary

50 verified official statistics are compiled in this edition, covering eight areas of household finance.
Reported cost-of-living pressure remains widespread even as headline consumer price inflation sits well below its peak.
Household-cost inflation is measured as higher for low-income households and for renters than for high-income households.
The Universal Credit caseload, PIP entitlement, average private rent and domestic energy debt are all at the levels shown in the most recent published releases.
No figure in this report is modelled, estimated or produced by SupportFund.

Key findings

Cost-of-living pressure is still widely reported
66% — 66% of adults said their cost of living had increased compared with the previous month.
Households are cutting back on essentials
41% — 41% reported spending less on food shopping and essentials because of increased living costs.
Low-income households face higher household-cost inflation
3.7% — Households in income decile 2 saw costs rise by 3.7%.
The Universal Credit caseload continues to grow
8.3 million — 8.3 million people were on Universal Credit in Great Britain in February 2026.
Many people on Universal Credit are in work
3.1 million — 3.1 million people on Universal Credit were in employment in January 2026.
Average UK private rent keeps rising
£1,388 per month — The average monthly private rent in the UK was £1,388 in June 2026.
Domestic energy debt is at a record level
£4.79 billion — Total domestic energy debt and arrears in the Great Britain energy market reached £4.79 billion.

Analysis

This report brings together the official statistics SupportFund holds on UK household finances for 2026 in one place, with a single consistent presentation: value, plain-English description, publisher, reference period and last-checked date.

The picture the official data supports is one of easing headline inflation alongside continuing pressure on household budgets. Headline consumer price inflation is far below its peak, but the ONS Household Costs Indices show household costs still rising faster than headline CPI for the groups measured, and survey data shows a majority of adults reporting another monthly increase in their own cost of living.

Pressure is not evenly distributed. The Household Costs Indices measure higher inflation for low-income households and for renters than for high-income households, and the five-year cumulative figure for low-income households is substantially higher again. Renting households face this alongside the highest average private rents on record in the ONS series.

On the support side, the DWP caseload data shows a Universal Credit population that has grown over the year and is far from exclusively out-of-work: a significant minority of recipients are in employment, and around half have no work requirements. PIP entitlement has continued to grow, with most recipients of working age.

SupportFund's practical conclusion from this data — and it is an interpretation, not a statistic — is that support discovery matters. Households experiencing cost pressure are not necessarily benefit claimants, and the data does not support treating those groups as the same population.

Cost of living pressure

12 verified records in this section, drawn from Office for National Statistics.

89% — 89% of adults in Great Britain said the cost of living was an important issue facing the UK. (Office for National Statistics, 6–31 May 2026)
66% — 66% of adults said their cost of living had increased compared with the previous month. (Office for National Statistics, May 2026)
63% — 63% of adults reported being very or somewhat worried about rising costs of living. (Office for National Statistics, May 2026)
69% — 69% of adults aged 30 to 49 said they were very or somewhat worried about rising living costs. (Office for National Statistics, May 2026)
93% — Among adults reporting a rise in their cost of living, 93% cited the price of food shopping. (Office for National Statistics, May 2026)
77% — Among adults reporting a rise in their cost of living, 77% cited the price of fuel. (Office for National Statistics, May 2026)
61% — Among adults reporting an increased cost of living, 61% cited gas or electricity bills. (Office for National Statistics, May 2026)
61% — 61% of adults reported spending less on non-essentials because of increases in the cost of living. (Office for National Statistics, May 2026)
41% — 41% reported spending less on food shopping and essentials because of increased living costs. (Office for National Statistics, May 2026)
35% — 35% of adults said they were using less gas or electricity at home because of rising living costs. (Office for National Statistics, May 2026)
8% — 8% of adults said they had been unable to buy or access essential food items they needed in the previous two weeks. (Office for National Statistics, May 2026)
13% — 13% disagreed or strongly disagreed that their household income covered their household's minimum living expenses. (Office for National Statistics, May 2026)

Inflation and household costs

10 verified records in this section, drawn from Office for National Statistics.

2.6% — Consumer Prices Index inflation was 2.6% in the 12 months to June 2026. (Office for National Statistics, 12 months to June 2026)
0.1% — CPI increased by 0.1% between May and June 2026. (Office for National Statistics, June 2026)
1.7% — Food and non-alcoholic beverage prices were 1.7% higher than a year earlier. (Office for National Statistics, June 2026)
21.3% — Motor fuel prices increased by 21.3% in the 12 months to June 2026. (Office for National Statistics, June 2026)
3.6% — The ONS Household Costs Index showed household costs rising by 3.6% in the year to March 2026. (Office for National Statistics, Year to March 2026)
3.7% — Households in income decile 2 saw costs rise by 3.7%. (Office for National Statistics, Year to March 2026)
3.5% — Households in income decile 9 saw costs rise by 3.5%. (Office for National Statistics, Year to March 2026)
3.7% — Private renting households saw household costs rise by 3.7% in the year to March 2026. (Office for National Statistics, Year to March 2026)
3.7% — Social renting households saw household costs rise by 3.7% in the year to March 2026. (Office for National Statistics, Year to March 2026)
33.9% — Cumulative Household Costs Index inflation for low-income households over the preceding five years was 33.9%. (Office for National Statistics, Five years to March 2026)

Income and savings

3 verified records in this section, drawn from Office for National Statistics.

-0.8% — Real household disposable income per head decreased by 0.8% in the first quarter of 2026. (Office for National Statistics, Q1 2026)
8.9% — The UK household saving ratio was 8.9% in the first quarter of 2026. (Office for National Statistics, Q1 2026)
-0.7 percentage points — The household saving ratio fell by 0.7 percentage points compared with the previous quarter. This is a percentage-point change, not a percentage change. (Office for National Statistics, Q1 2026)

Universal Credit and the benefits caseload

12 verified records in this section, drawn from Department for Work and Pensions.

8.3 million — 8.3 million people were on Universal Credit in Great Britain in February 2026. (Department for Work and Pensions, February 2026)
830,000 — The number of people on Universal Credit increased by 830,000 between February 2025 and February 2026. (Department for Work and Pensions, February 2025 to February 2026)
7.2 million — 7.2 million households in Great Britain were on Universal Credit in February 2026. (Department for Work and Pensions, February 2026)
6.7 million — 6.7 million households, equivalent to 93% of Universal Credit households, had a payment indicator. (Department for Work and Pensions, February 2026)
44% — 44% of Universal Credit households receiving a payment had children. (Department for Work and Pensions, February 2026)
3.1 million — 3.1 million people on Universal Credit were in employment in January 2026. (Department for Work and Pensions, January 2026)
37.8% — 37.8% of people on Universal Credit were in work in January 2026. (Department for Work and Pensions, January 2026)
50% — Around 50% of Universal Credit recipients were in the no-work-requirements conditionality regime. (Department for Work and Pensions, February 2026)
57% — 57% of people on Universal Credit were women. (Department for Work and Pensions, February 2026)
13.2 million — The State Pension caseload was 13.2 million, up 1.9% year on year. (Department for Work and Pensions, August 2025)
1.4 million recipients — 1.4 million people received Pension Credit, with 1.6 million beneficiaries including partners. (Department for Work and Pensions, August 2025)
1.5 million claims — There were 1.5 million Housing Benefit claims, down 25.6% year on year. (Department for Work and Pensions, November 2025)

Disability support

5 verified records in this section, drawn from Department for Work and Pensions.

4.0 million — 4.0 million people in England and Wales had entitlement to Personal Independence Payment. (Department for Work and Pensions, 30 April 2026)
83% — 83% of PIP recipients — approximately 3.3 million people — were of working age. (Department for Work and Pensions, April 2026)
37% — 37% of PIP claims with entitlement received enhanced rates of both Daily Living and Mobility. (Department for Work and Pensions, April 2026)
250,000 — 250,000 new PIP claims were registered in the quarter ending April 2026. (Department for Work and Pensions, Quarter ending April 2026)
39% — Psychiatric disorders represented 39% of normal-rules PIP claims. (Department for Work and Pensions, April 2026)

Rent and housing

4 verified records in this section, drawn from Office for National Statistics.

£1,388 per month — The average monthly private rent in the UK was £1,388 in June 2026. (Office for National Statistics, June 2026)
3.3% — Average UK private rents increased by 3.3% in the 12 months to June 2026. (Office for National Statistics, 12 months to June 2026)
£1,446 per month — The average monthly private rent in England was £1,446 in June 2026. (Office for National Statistics, June 2026)
£271,000 — The average UK house price was £271,000 in May 2026. (Office for National Statistics, May 2026)

Energy costs and energy debt

3 verified records in this section, drawn from Ofgem.

£4.79 billion — Total domestic energy debt and arrears in the Great Britain energy market reached £4.79 billion. (Ofgem, Q1 2026)
13% — For a typical dual-fuel Direct Debit household, Ofgem's price cap increased by 13% for the July–September 2026 cap period. (Ofgem, 1 July–30 September 2026)
40% — 40% of electricity customers repaying debt did so through a prepayment meter, down from 47% one year earlier. (Ofgem, Q1 2026)

Consumer credit

1 verified record in this section, drawn from Bank of England.

£1.8 billion — Net consumer credit borrowing was £1.8 billion in June 2026, split between £0.9 billion of credit-card borrowing and £0.9 billion of other consumer credit. (Bank of England, June 2026)

Charts

What households say is driving higher living costs

Great Britain · May 2026 · Source: Office for National Statistics

Chart: SupportFund. Source data: Office for National Statistics. Public opinions and social trends, Great Britain: May 2026. Last checked 12 August 2026. View original source

Household cost inflation by household group

United Kingdom · Year to March 2026 · Source: Office for National Statistics

Mortgagor and outright-owner household groups are not shown because those figures are not part of this verified import.

Chart: SupportFund. Source data: Office for National Statistics. Household Costs Indices for UK household groups: January to March 2026. Last checked 12 August 2026. View original source

Universal Credit in 2026: caseload snapshot

Great Britain · February 2026 (employment measure: January 2026) · Source: Department for Work and Pensions

Chart: SupportFund. Source data: Department for Work and Pensions. Universal Credit statistics, 29 April 2013 to 12 February 2026. Last checked 12 August 2026. View original source

UK private rent snapshot

United Kingdom and England · June 2026 · Source: Office for National Statistics

Wales, Scotland and Northern Ireland are not shown because those values are not part of this verified import.

Chart: SupportFund. Source data: Office for National Statistics. Private rent and house prices, UK: July 2026. Last checked 12 August 2026. View original source

Domestic energy debt reaches £4.79 billion

Great Britain energy market · Q1 2026 · Source: Ofgem

£4.79 billion

Domestic energy debt and arrears

40%

Electricity customers repaying debt via prepayment meter

47% one year earlier.

Historical series coming soon. We will only publish a trend chart once verified quarterly Ofgem records have been imported — we do not reconstruct history.

Domestic energy debt reaches £4.79 billion — underlying data
Measure	Value	Geography	Period
Domestic energy debt and arrears	£4.79 billion	Great Britain energy market	Q1 2026
Electricity customers repaying debt via prepayment meter	40%	Great Britain energy market	Q1 2026

Chart: SupportFund. Source data: Ofgem. Consumer vulnerability strategy progress report. Last checked 12 August 2026. View original source

Methodology

This publication is SupportFund analysis and compilation of official UK statistics. SupportFund did not collect the underlying data and has not run a survey. Every figure remains the property and responsibility of the original publisher.
Each figure is stored once in the SupportFund statistics registry with its publishing organisation, release title, source URL, reference period and last-checked date, and is read back from that record wherever it appears.
Values are reproduced exactly as published. SupportFund does not recalculate, rebase, seasonally adjust or combine official figures into an index.
Reference periods differ between releases and are shown against every figure. Figures from different periods are not compared as if they were a time series.
Percentages and percentage points are distinguished throughout: a change of 0.7 percentage points is not a 0.7% change.
All records were last checked against their source on 2026-08-12.

Limitations

This is a compilation of separate official releases, not a single consistent survey.
Geographic coverage varies by release: some figures are UK-wide, some are Great Britain, some England and Wales, and some England only. The coverage is shown against each figure.
Survey-based figures carry sampling uncertainty that is documented by the original publisher.
Administrative caseload figures reflect the date the data was extracted and are routinely revised by the publisher.
Association is not causation: figures published in the same report do not establish that one caused the other.