Working parents household finances plummet as school term begin

Working parents’ confidence in the future UK economy and their future and current household finances has plummeted ahead of the start of the new school year according to Which?’s latest consumer insight tracker.

In the month to 13th August, working age parents’ confidence in the future UK economy fell dramatically by 25 points from a score of -7 to -32. This is a much greater drop in confidence than seen by other demographics – like pensioners and working age non-parents – whose confidence in the future UK economy remained at similar levels to July. 

Working parents also reported being less confident about their current household finances with their confidence score falling by 22 points to 7. Similarly, their confidence in future household finances fell by 14 points to 0.

Working parents also reported being more worried about rising food prices. In the month to 13th August, almost nine in ten (87%) working age parents reported being concerned about food prices. This is an increase of six percentage points since May and sees working age parent’s concerns about food prices return to levels not seen since November 2022 – when the cost of living crisis was at its peak and inflation was in double figures. Across all consumers, concern about food prices has slightly increased by three percentage points to 82 per cent – likely due to rising food inflation. Concern about energy was also high at 81 per cent. 

These figures show that many working parents are still feeling financial pressure due to the high cost of living – especially at pinchpoints like summer holidays and back to school season, when they are also paying for holidays and childcare as well as purchasing new uniforms and school supplies. 

These figures come as an estimated 1.9 million households missed at least one essential payment – such as rent or mortgage payments, utility bills, credit card or loan payments – in the month to 13th August 2025. 

An estimated 14.4 million households also made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month. Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing. 

With winter and higher heating bills fast approaching, pressures on household finances are only likely to increase. If people are missing or struggling to afford essential payments – such as energy, credit card or mortgage payments – then they should speak to their provider immediately for help. Businesses should also do everything they can to help their customers and ensure they are offering value for money. 

Rocio Concha, Which? Director of Policy and Advocacy, said “Our research shows working parents are feeling the pinch ahead of back to school season – with many worried about the economy, their household finances and the cost of everyday essentials. 

“As the nights draw in and the weather gets colder, the extra pressure of staying warm and keeping the lights on will add stress to household finances. We’d encourage anyone who’s struggling to seek free debt advice and reach out to their bill provider for help.”