More than 21 million Brits expect financial decline in 2025

This data, from debt charity StepChange, emerges amidst a backdrop where, despite the claimed easing of the cost of living crisis, economic pressures remain pronounced.

The findings indicate that energy bills continue to be a significant source of distress for households across the nation. StepChange’s survey highlighted that two in five adults, translating to an estimated 21.3 million individuals, expect their financial situation to worsen within the coming twelve months.

The situation appears exacerbated by the soaring energy costs, with the regulatory body Ofgem having raised the energy price cap further from the start of January.

The concerns surrounding finances are not isolated. On Christmas Day alone, nearly 4,000 individuals sought debt advice via StepChange’s website, indicating the heightened anxiety surrounding financial pressures. Of those anticipating financial decline, close to three in five attributed their fears to escalating energy bills.

Moreover, one in six adults reported that they are constantly preoccupied with financial worries, while an additional 59% acknowledge feeling anxious about money at least occasionally.

Demographically, the research reveals that women are disproportionately affected by the rising financial strains, with 58% reporting increased anxiety about money over the past year, compared to 48% of men. This disparity draws attention to the broader implications of financial vulnerability across different societal groups.

Vikki Brownridge, chief executive of StepChange, commented on the findings: “It’s clear that millions of people across the UK are feeling the weight of financial uncertainty. The cost of living, including stubbornly high energy bills, continues to impact families, individuals, and communities, with particular strain being felt by women and those with parental responsibilities."

She emphasised the non-transient nature of the ongoing financial challenges, noting that many are entering 2025 with greater worry than in previous years. She also addressed the critical relationship between mounting financial pressure and resulting debt, underscoring the importance of seeking help sooner rather than later.