New poll: Quarter of UK households unable to meet an £850 emergency expense

More than a quarter of UK households cannot afford an unexpected but necessary expense of £850, according to a May 2026 survey of 6,731 people commissioned by Carnegie UK.

The survey reveals that 28% of UK households would struggle to meet an £850 emergency cost, while 6% cannot afford enough food for everyone in their household and 12% cannot afford to socialise at least once a month. None of these statistics have improved since Carnegie UK began tracking them in 2023 through their Life in the UK Index.

The results come as Prime Minister Andy Burnham has pledged to make his administration a ‘cost of living government’, placing household financial pressures at the centre of a ten-year plan to rewire Britain’s economy. In a recent interview the Prime Minister highlighted concerns raised repeatedly by voters during the Makerfield by-election campaign, including the growing difficulty of affording everyday activities such as socialising with friends or taking a family holiday.

Carnegie’s Life in the UK Index data suggests these challenges are not new. The organisation’s tracking data shows no significant improvement in most indicators of financial wellbeing over the last four years. During that period, three Prime Ministers have said that reducing costs is a priority yet many households continue to struggle with the cost of everyday life.

Adam Lang, director of policy, insight and advocacy at Carnegie UK, said: “These survey results are disappointing but not surprising. Our data shows that too many people remain unable to afford essentials, cope with unexpected costs, or participate fully in society.

“Prime Minister Andy Burnham has the right ambition, and we welcome his focus on the cost of living. However, there are no quick fixes for tackling inequality in our society. Meaningful change will require sustained action, collaboration across government, and a commitment to measuring what matters to households and communities.

“Economic indicators such as inflation, wage growth and GDP tell us important things about the economy, but they do not tell us about people’s lives and whether people are able to live well.

“If governments are serious about improving people’s lives, they must track outcomes that matter to people and use that evidence to guide long-term policy decisions.”

Other findings from the survey paint a more mixed picture of life across the UK. The proportion of people unable to keep their home adequately warm has fallen from 17% to 12% since 2023, the lowest level recorded by the survey. However, improvements in this area have not translated into wider gains in financial resilience.

Carnegie UK says the results highlight the need to supplement economic indicators such as inflation, wages and growth when assessing living standards and economic wellbeing. While some pressures have eased, the research suggests that many people remain unable to afford essentials, build financial security or participate fully in society.

Contact

Stuart Mackinnon [email protected] / 07934 296831
Claire Martin [email protected] / 07921 480 526