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Baringa has modelled the finances of 28m households across the UK and created a report mapping the country’s financial health. The report allows businesses to pinpoint which cohorts will most struggle to pay their bills, helping organisations to both plan their finances accordingly, and to offer support to their customers as needed. The report also highlights the worrying trend of British consumers falling into a debt trap, which has implications for both the private sector and policymakers. 

• 6.9m households financially vulnerable 
  Overall financial vulnerability is expected to increase from 23% to 24% in Winter 25/26, representing over a quarter of a million additional households. 
• 2.3m households in extreme vulnerability 
  An additional 548k households are forecast to fall into the “extremely vulnerable” financial vulnerability category in Winter 25/26. In total, 8% of households are expected to be in extreme vulnerability. 
• Extreme vulnerability reaches 25% of key demographics 
  Around 25% of low-income couples and solo low-income households exhibit extreme vulnerability, but it is rising fastest among single parents and multi-adult households. 
• £1.6bn increase in domestic customer energy debt 
  Debt levels are set to rise sharply across all payment types, with the increase most acute among prepay and unsecured customers.