More than a third (36%) of households in Britain with an annual income of less than £40,000 have skipped meals or eaten less because of financial pressures in the last three months, according to the latest Vanquis Financial Wellbeing Index.
Over the same period, more than a quarter (27%) have delayed medical or dental treatment because they could not afford it, while 28% have sold personal possessions to cover living expenses.
The findings show how financial pressure is affecting basic needs, even as households seek cheaper groceries and cut non-essential spending to make their money go further.
The pressure also reaches higher-income households. 22% have skipped meals or eaten less because of financial pressures, and 20% have delayed medical or dental treatment.
Limited room for higher bills
Many lower-income households are already taking steps to stretch their budgets. Three-quarters (75%) are reducing non-essential spending, 66% are buying more own-label groceries and 63% have switched to cheaper supermarkets. More households are now buying own-label groceries and switching to cheaper supermarkets than at any point since October 2024.
Despite these efforts, 44% could not absorb a £100 increase in regular monthly costs without cutting back on essentials, using savings or borrowing, compared with 20% of higher-income households. This includes 12% whose costs could not increase at all.
Supporting relatives is also putting pressure on household finances, with 30% of lower income households providing financial support to relatives in the last 12 months, and nearly three-quarters of those saying it has affected their own ability to save or cover expenses.
A quarter of lower-income households now have no savings, leaving them with little protection against an unexpected expense or a fall in income.
John Natalizia, deputy CEO, Vanquis, said: “People are working hard to make their money go further, shopping around and making careful choices about what they spend.
But for some, those efforts are still not enough to avoid difficult decisions, including eating less or putting off medical or dental treatment. It is also concerning that so many people say their financial situation is affecting their mental wellbeing.
“What concerns me is how little room some households have left. If people are already cutting back on essentials, another rise in bills or an unexpected expense can put them in a very difficult position.
“These findings reinforce the need for people to access the financial support they are entitled to, so they can manage their spending commitments and get help early when difficulties arise. Being able to meet today’s bills and face tomorrow with greater confidence should be within more people’s reach.”
Financial pressure weighs on wellbeing
Almost half of lower-income households (49%) say their financial situation has affected their mental wellbeing, up from 42% in October 2024 and the highest level recorded across the tracker. More than a third (37%) report an effect on their physical wellbeing.
The Financial Wellbeing Score for lower-income households has fallen from 68 in May to 64 out of 100. The four-point decline is twice the fall recorded across the population overall, whose score fell from 69 to 67. Both remain within the moderate financial wellbeing band, but lower-income households are now towards its lower end.
While the proportion of income left after spending and other payments has improved slightly, the amount paid into savings fell by 12.8% compared with the previous quarter. The findings suggest that some improvement in day-to-day finances is not yet translating into stronger financial protection.
Looking ahead, 32% of lower-income households expect their finances to worsen over the next six months, compared with 15% who expect them to improve.
The Autumn 2026 Vanquis Financial Wellbeing Index combines consumer research from Mintel with anonymised transaction data from Snoop/SpendMapper, focusing on the financial realities of households earning under £40,000 a year.
