One-in-three trying to use less water to cope with rising bills
07 June 2025New research published today [7 June] found households are continuing to grapple with the cost-of-living as people resort to various measures to try to cut costs. 24% report their energy bills have increased ‘a lot’ and 29% say their water bills have risen ‘a lot’ over the last six months. However, whilst 20% of households report switching provider to save on their energy bills, households are unable to shop around for cheaper water suppliers. Over a third (34%) are cutting their use of water instead, with one-in-five (19%) reducing the number of showers or baths they take.
The Financial Fairness Tracker, commissioned by abrdn Financial Fairness Trust and analysed by a team of researchers at the University of Bristol, questioned over 6,000 households on their finances. The Tracker has been monitoring the personal finances of households across the UK since the start of the pandemic.
National average water bills for the coming year are forecast to increase by around £10 a month(1). However, some groups are already struggling and cutting their water usage to save money. 44% of those in the bottom income quintile are using less water (for the top quintile this is 27%). For households where someone has a disability, 43% are using less water to try to save money, compared with 31% of households where no one has a disability.
Another area households are feeling the pinch is telecoms bills. 60% report these bills increasing over the last six months (15% ‘a lot’ and 45% ‘a little’). Many have taken steps to manage this such as 13% switching phone or broadband provider, 16% downgrading phone, broadband or TV packages, 13% cancelling their TV licence or subscriptions.
Households also report experiencing food price increases, with 70% noticing the cost of food has gone up a lot (31%) or a little (39%). Those who are struggling to pay for essentials has increased from 14% of UK households (when the Tracker first began in 2020) to 21% now. To balance the books 34% of all households have cut back on leisure and entertainment spending and 42% cut back on clothing and shoes.
Some groups are particularly hard-hit. Just under a third of households headed by someone under 40 are struggling to pay for food and other essentials, with a similar proportion for those from an ethnic minority background (particularly those from a 'Black' or 'Mixed or other' background), for those with someone disabled in the household (where their activities are limited a lot), and those with children (especially single parents).
Mubin Haq, CEO of abrdn Financial Fairness Trust, said:
“Cost-of-living worries are far from over for millions of households across the UK. Some have absorbed higher bills, but for those on lower incomes, bills for essentials are such a high proportion of their spending that they are running out of things they can cut. The number struggling to pay for essentials has increased by 50% over the last five years and their finances are under intense pressure. Government and utilities companies need to make bills more affordable for those on low incomes including through greater use of social tariffs.”
Professor Sharon Collard, Chair in Personal Finance at the University of Bristol, said:
“The Tracker shows nearly a third of households where someone is disabled are struggling to pay for essentials. This should serve as a warning to the Government that their proposed cuts to disability benefits are likely to hit those who are already on the breadline. We know from the past 15 years that cuts do not support people into work, but push many deeper into poverty and hardship.”
The Financial Fairness Tracker, commissioned by abrdn Financial Fairness Trust and analysed by a team of researchers at the University of Bristol, questioned over 6,000 households on their finances. The Tracker has been monitoring the personal finances of households across the UK since the start of the pandemic.
National average water bills for the coming year are forecast to increase by around £10 a month(1). However, some groups are already struggling and cutting their water usage to save money. 44% of those in the bottom income quintile are using less water (for the top quintile this is 27%). For households where someone has a disability, 43% are using less water to try to save money, compared with 31% of households where no one has a disability.
Another area households are feeling the pinch is telecoms bills. 60% report these bills increasing over the last six months (15% ‘a lot’ and 45% ‘a little’). Many have taken steps to manage this such as 13% switching phone or broadband provider, 16% downgrading phone, broadband or TV packages, 13% cancelling their TV licence or subscriptions.
Households also report experiencing food price increases, with 70% noticing the cost of food has gone up a lot (31%) or a little (39%). Those who are struggling to pay for essentials has increased from 14% of UK households (when the Tracker first began in 2020) to 21% now. To balance the books 34% of all households have cut back on leisure and entertainment spending and 42% cut back on clothing and shoes.
Some groups are particularly hard-hit. Just under a third of households headed by someone under 40 are struggling to pay for food and other essentials, with a similar proportion for those from an ethnic minority background (particularly those from a 'Black' or 'Mixed or other' background), for those with someone disabled in the household (where their activities are limited a lot), and those with children (especially single parents).
Mubin Haq, CEO of abrdn Financial Fairness Trust, said:
“Cost-of-living worries are far from over for millions of households across the UK. Some have absorbed higher bills, but for those on lower incomes, bills for essentials are such a high proportion of their spending that they are running out of things they can cut. The number struggling to pay for essentials has increased by 50% over the last five years and their finances are under intense pressure. Government and utilities companies need to make bills more affordable for those on low incomes including through greater use of social tariffs.”
Professor Sharon Collard, Chair in Personal Finance at the University of Bristol, said:
“The Tracker shows nearly a third of households where someone is disabled are struggling to pay for essentials. This should serve as a warning to the Government that their proposed cuts to disability benefits are likely to hit those who are already on the breadline. We know from the past 15 years that cuts do not support people into work, but push many deeper into poverty and hardship.”