UK households feel positive about their finances in 2025

Most UK households are feeling positive about their finances this year, according to a new survey by KPMG.

A solid 57% of people say they feel financially stable, with those under 34 feeling the most upbeat.

While half of the respondents said they could spend freely, just 3% reported struggling to pay essential bills or falling into debt.

Age and regional differences

Regionally, Londoners are the most upbeat, while the north-east is feeling a bit more down in the dumps.

Overall, 21% of adults said they felt insecure about their money, while people aged over 65 are least likely to feel optimistic.

Mixed feelings about the economy

The mood about the bigger picture isn’t quite as rosy, as two-thirds are feeling gloomy about the economy.

Meanwhile, four in ten believe things are getting worse, and only a quarter think they’re improving.

Big purchases ahead

Despite mixed feelings about the economy, 80% of us are planning to splurge on big-ticket items next year, such as:

• holidays – 39%
• minor home improvements – 20%
• new cars – 10%
• mobile phones – 10%

Spending trends

Our spending habits have changed in recent months. We’re spending more on our groceries (especially when they’re on offer) and cutting back on eating out.

Linda Ellett from KPMG sums it up nicely: “It’s encouraging to see the majority of households feeling secure.

“However, the future depends on various factors, including interest rates and job security.”

Take back control

If you aren’t feeling too positive about money, don’t despair – help is always available.

Take the first step towards lifting the financial weight off your shoulders this year and get in touch for free advice.

We cover everything from budgeting to debt solutions and making sure you’re claiming everything you’re entitled to.

It just might be the best decision you make this year.