Half of UK households would run out of money within two months despite UK growth

Nearly half of UK households would run out of money within two months if their main source of income stopped, according to new research from Novuna Personal Finance, revealing the scale of financial fragility facing families across the country, despite stronger-than-expected UK growth.

The first wave of Novuna’s new Consumer Confidence Tracker found that 49% of households could only cover essential costs for less than two months if their main income stopped tomorrow. More starkly, one in eight households, 13%, said they would last less than a week.

The findings come after official figures showed the UK economy grew by 0.6% in the first quarter of 2026. While the data points to renewed economic momentum, Novuna’s research suggests that headline growth is not yet translating into stronger financial resilience for many households, with many remaining highly exposed to even a short-term income shock.

Regional differences are also clear. Households in Northern Ireland appear the most financially exposed, with 68% saying they could not cover essentials for more than two months, followed by the North-East, 61%, and the North-West, 53%.

By contrast, households in Greater London, 42%, the South-West, 44%, the East Midlands, 45%, and the East of England, 46%, are below the UK average for financial fragility.

Food and grocery costs are the biggest source of financial worry, with 18% of households saying they are keeping them awake at night, followed by energy bills, 17%, and council tax orand other household bills, 11%.

The research also points to a lack of meaningful financial safety nets. While 27% of households say they would rely on savings if their income stopped, many would need outside support, including benefits or income support, 15%, help from family and friends, 12%, or credit, 10%.

Credit is already becoming part of everyday financial management for many consumers, with one in three, 33%, saying they regularly rely on credit to pay for essential living costs.

Looking ahead, confidence remains fragile. More than a quarter of consumers, 27%, expect their financial situation to worsen over the next three months. Households in Northern Ireland and the West Midlands are the most pessimistic, at 34%, followed by Wales, 32%.

Despite the pressure, many households are still trying to protect small elements of normal life. Holidays and travel top the list of expected discretionary spending over the next three months, at 28%, followed by eating out and socialising, 23%, and home improvements, 22%.

Theresa Lindsay, Chief Marketing Officer at Novuna, said:

“Recent GDP figures show the UK economy started the year more strongly than many expected, but our research shows national growth does not automatically translate into household financial security.

“For millions of families, the financial margin remains extremely narrow. Many are not simply cutting back on luxuries; they are struggling to build the savings buffer needed to withstand even a short-term loss of income.

“The fact that a third of consumers are regularly using credit to cover essential living costs is a clear warning sign. Credit can be useful when it is affordable and well managed, but when it becomes part of paying for groceries, energy or household bills, it points to a deeper issue around household resilience.

“What is striking is the tension between people trying to maintain normal life, including holidays and socialising, while also worrying about how long they could cope if their income stopped.”