The U.K. economy is in a precarious position, due to both energy costs and the recent actions of the Truss government. With U.K. energy bills expected to skyrocket in October and with the cost-of-living increasing drastically across the UK, credit management company Lowell has surveyed British subjects to understand their financial priorities. The results are illuminating.
The research reveals the biggest financial goals across the U.K. this year, compared to 2019. The research revealed the percentage of people who are worried about being able to do a weekly food shop has increased by 21 percent since 2019.
With 2022 seeing the cost-of-living increasing drastically across the U.K., the research goes onto reveal the biggest financial goals across the U.K., highlighting what people are prioritising this year, compared to 2019.
Financial Future Goals in 2019 compared to 2022
| Financial Future Goals | 2019 | 2022 | % Change |
| Being able to do a weekly food shop | 10.70% | 12.90% | 21% |
| Comfortably paying bills | 22.30% | 25.70% | 15% |
| Moving abroad | 4.30% | 4.90% | 14% |
| Having a secure savings pot | 17.70% | 20.10% | 14% |
| To achieve financial stability | 24.70% | 27.20% | 10% |
| Pay debts off | 22.00% | 23.90% | 9% |
| Be secure in supporting family | 11.20% | 11.60% | 4% |
Since the cost-of-living crisis, spending habits have seen a change. Achieving financial stability was the leading financial goal in 2022, seeing a 10 percent increase since 2019.
U.K. inflation is rising at the fastest rate in 40 years, seeing food costs increasing and the cost of living putting a toll on banks. Lowell found that over one in five households want to be able to comfortably do a weekly food shop, a 21 percent increase since 2019.
According to the U.K. energy regulator Ofgem, the typical household could expect to see an £800 increase in energy use per year. Lowell’s data revealed a quarter of people (26 percent) said that comfortably paying their bills was one of their main financial goals in 2022, witnessing a 15 percent increase since 2019.
Young people’s spending habits have changed since 2019
| Criteria | Age range | |||
| 16-24 | 25-34 | 35-44 | 45-54 | |
| % | % | % | % | |
| Pay debts off – 2019 | 12% | 28% | 30% | 29% |
| Pay debts off – 2022 | 21% | 32% | 29% | 34% |
| % Change since 2019 | 69% | 15% | -6% | 19% |
The number of young people wanting to pay off debt has seen an increase since 2019; indicating that more young people have debt since the pandemic and the cost-of-living crisis. Paying off debt among 16-24-year-olds has witnessed a massive 69% increase in priorities across the UK. The only age group to see a decrease, are among 35–44-year-olds who saw a decrease of six percent in priority since 2019.
Preparing for the future
Considering how the landscape has changed in 2022 and the challenges that people are facing, John Pears, UK CEO of Lowell, tells Digital Journal: “We’re all facing tougher times ahead, but this is particularly true for some of our most vulnerable households across the U.K. It’s important to try and be as prepared as possible, and realistic about your financial goals over the next year or two. Building a rainy-day fund, or improving your credit score, for example, might not feel financially realistic at this point in time, and that’s okay.”
