81% of parents feeling summer financial strain

Summer 2025 is proving even tougher for families, with 81% of parents feeling financially stressed and 52% worse off than last summer, according to new research from credit-building business Loqbox.

The data shows households feeling the squeeze, driven by pricier holidays, rising childcare costs, and mounting back-to-school expenses, with 52% feeling worse off than in summer 2024

Budgeting is down, with only 26% actively budgeting this year (down from 34% in 2024), whilst 8.4% use Buy Now Pay Later (BNPL) to fund summer travel – rising to 17% among higher-income households

Meanwhile, 23% of parents are turning to credit cards or loans to fund summer, up from 17% last year. Additional research from MyVoucherCodes found UK parents spend an average of £108.59 per child on back-to-school clothing alone, not including tech, lunch gear, or extracurricular costs. One parent said, “It’s terrifying. It’s all so expensive,” while another described feeling “stressed [about] how much it’s all going to cost this year.”

Tom Eyre, CEO and Co-Founder of Loqbox, said “Parents are under real financial pressure right now, it’s not down to poor planning. It’s the cost of everyday life outpacing people’s ability to keep up. Over half of parents feel worse off than this time last year. That tells you everything. From childcare and travel to school supplies, it’s all adding up, and families feel the squeeze from every direction. This research shines a light on what households are really facing this summer. But it also offers support for practical ways to stretch budgets, travel smarter, and ease the back-to-school fees. It’s not about doing without, it’s about making every penny go further.

“We’re seeing a shift in how families use credit. Tools like Buy Now Pay Later are no longer just a last resort; they’re becoming part of everyday money management. People across income levels are using them to take control of rising costs and protect the things that matter most.”