Half of UK 18‑24‑year‑olds can’t afford basic living costs, study finds

Research by the Personal Finance Research Centre shows most young adults struggle to cover essential costs.

By Felo News Desk · Published Mon, 12 Oct 2026 01:10:50 GMT

A University of Bristol study released on 11 October 2026 found that only about half of 18‑ to 24‑year‑olds in the UK can afford basic living expenses each month.

What happened

The Personal Finance Research Centre, in partnership with StepChange Debt Charity and funded by NatWest Group, surveyed 18‑ to 24‑year‑olds across the UK. The findings show that 49% of respondents said they could meet essential costs month‑to‑month, while 19% reported being financially independent from parents or other relatives. Among all age groups, 57% are financially independent.

What the reports add

Both the Independent and the Evening Standard recorded that 51% of 18‑ to 24‑year‑olds would not use artificial intelligence for financial tasks, a proportion close to the national average of 49%.
StepChange’s client data revealed that 44% of its 18‑ to 34‑year‑old customers had borrowed to pay for housing, and 49% said their earnings were insufficient for essential outgoings. Moreover, three‑quarters of those clients first accessed credit before turning 21.
The Standard noted the survey drew on StepChange advice records for 71,000 adults aged 18‑34 who sought help in 2025 and a YouGov poll of more than 4,200 people.
A third of 18‑ to 34‑year‑olds (34%) said the pandemic had a negative effect on their career progression, compared with 23% of those aged 35‑49 and 16% of those 50‑64.

What was said

“For many young people, the promise of adulthood is financial independence, stable work and the chance to build a secure future. Increasingly, however, that aspiration is out of reach,” said Vikki Brownridge, chief executive of StepChange Debt Charity (Independent; Evening Standard).

“Six years on, young adults are still feeling the legacy impacts of the pandemic, in terms of their careers, their personal finances and their health and wellbeing,” said Jamie Evans, research fellow at the Personal Finance Research Centre, University of Bristol (Independent; Evening Standard).

“This research provides important insight into the financial challenges facing younger adults today and the factors that can shape their financial futures,” said Haydn Williams, head of financial health and support at NatWest (Independent; Evening Standard).

How it came about

The study builds on earlier research into young adults’ financial pressures, including Felo’s recent coverage of rising holiday spending where Gen Z households expect to spend £2,274 on Christmas, far above older generations (UK families brace for £1,500 Christmas spend). The new data highlight the broader cost‑of‑living challenges facing the same demographic.

Key facts

49% of 18‑ to 24‑year‑olds said they can afford basic living expenses each month (independent.co.uk)
19% of 18‑ to 24‑year‑olds are financially independent from parents or relatives (independent.co.uk)
51% would not use AI for financial tasks, matching the national average of 49% (standard.co.uk)
44% of StepChange clients aged 18‑34 have borrowed to cover housing costs (independent.co.uk)
75% of StepChange clients aged 18‑34 first used credit before age 21 (standard.co.uk)