Our latest Consumer Insight Tracker* found that recent improvements in confidence in the economy and household finances are showing signs of faltering.
Here, we delve into the findings and offer advice on how you could save money on energy bills, food and more this winter.
Consumer confidence in the economy drops
Consumer confidence had slowly increased over the past year, but in the month to 9 October, it started to show signs of faltering.
Just a fifth of people now believe the economy will improve, according to our survey results.
One woman in her twenties told Which?: 'I don’t see the economy improving anytime soon and we’re barely keeping our head above water', while another said: 'I have been supplementing my income with savings, but my savings are dwindling.'
Find out more:Missed payments remain high
An estimated 2.1 million households missed an essential payment, such as a housing bill, loan or credit card payment in the month to 9 October.
This figure is slightly lower than the missed payment rates of the last few months but remains much higher compared to two years ago.
Over half of households reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month. This equates to an estimated 15.5 million households.
Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing.
Again, while this is lower than the levels seen last October (60%), it is much higher than the figure of 44% recorded two years ago.
Find out more:Fears finances 'will worsen' this winter
A third of respondents fear their household’s financial situation will worsen in the months to come.
A woman in her fifties said: 'Energy costs are high and there has been no announcement of government support for the winter like we had last year.'
Those who felt pessimistic about their future household finances are also more likely to believe bills will increase in the next year.
Nine in 10 think fuel and food bills will increase, and more than eight in 10 believe housing costs and energy will rise.
Find out more:Which? calls for increased winter support
At such a difficult financial time, businesses must do everything in their power to ease pressures on household budgets. Which? is calling on essential businesses – energy firms, broadband providers and supermarkets – to do more to help their customers and ensure they are providing value for money.
For example, supermarkets need to make sure affordable, healthy food options - like budget line items - are widely available and energy firms need to ensure their customer service departments are fully staffed and able to support any customers who are struggling to make ends meet.
Telecoms firms also need to properly advertise their social tariffs to eligible customers.
Find out more:How to save money on your energy bills
With winter fast approaching and energy bills predicted to remain at high levels until the end of the decade, consumers will continue to face financial pressures.
There are some simple steps you can take to keep costs down this winter, including draught-proofing and adjusting your combi boiler's flow temperature.
If you get paper bills, ask your energy company to change to paperless ones and manage your account online instead. Some companies charge customers for paper billing.
Paying your bill by direct debit is usually the cheapest method. But if your supplier wants to increase your direct debit by more than you'd expect, ask it to explain why. Over a year, your usage and payments should balance out.
Sending your supplier regular meter readings will also keep your payments accurate and prevent estimated bills. If you have a smart meter, it should send your meter readings automatically.
Find out more:Advice on saving money this winter
*The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.
source https://www.which.co.uk/news/article/cost-of-living-crisis-majority-of-households-fear-for-economys-future-aI31p5S7QQtg