UK Households Face Growing Financial Pressure as Economic Growth Slows
According to the International Desk of Webangah News Agency, official data from the UK’s Office for National Statistics reveals that British households sharply reduced savings in Q3 2025 to sustain consumption levels amid rising taxes and income pressures. The UK’s GDP growth slowed to 0.1% during this period, down from 0.2% in the previous quarter, indicating an economic slowdown.
Household financial indicators show worsening economic pressures, with the savings ratio dropping 0.7 percentage points to 9.5% between July and September – the lowest level in a year. Disposable income per household also fell by 0.8%, following no change in the previous quarter.
Economic experts predict UK growth will decline to 1% next year from 1.4% in 2025. The current account deficit narrowed to £12.1 billion (1.6% of GDP) in Q3, a significant improvement from 2.8% in Q2.
Sky News reported these figures demonstrate the financial squeeze on households and economic deceleration following a strong start to 2025. Eastern Eye quoted ONS Director Liz McKeown confirming the preliminary picture: ‘Growth has slowed further in the third quarter.’ The data indicates the UK economy faces serious challenges, with external factors including cyberattacks and manufacturing sector problems contributing to the growth slowdown.
