Brief
UK households boost borrowing to fastest level in 33 years
Credit‑card and unsecured‑loan borrowing surged as energy and fuel costs squeeze disposable incomes.
By Felo News Desk · Published
Bank of England figures released on 29 September 2026 show UK households increased total consumer borrowing by £2.46 billion in the month, the largest rise on record back to 1993.
Credit‑card lending alone grew by £1.18 billion, the fastest monthly increase since 2004, while car finance and personal loans also rose sharply.
A PwC survey cited in the same report found only 35 % of workers could afford savings or holidays after paying essential bills, down from 45 % a year earlier, and 59 % felt job‑related strain.
Matt Swannell, chief economic adviser at ITEM Club, said the data provide “tentative evidence that people are using credit to lean against the squeeze on household spending power,” as reported by the Daily Mail. Rob Wood, chief UK economist at Pantheon Macroeconomics, added that higher borrowing helps households “smooth through” the financial drag caused by rising energy bills. Katie Clinton, financial services adviser at KPMG UK, warned that persistent inflation may force more people to rely on credit despite any optimism about future finances.
Key facts
- UK consumer borrowing rose by £2.46 billion in September 2026, the biggest monthly increase since 1993. (dailymail.co.uk)
- Credit‑card lending grew by £1.18 billion, the fastest rise since 2004. (dailymail.co.uk)
- Only 35 % of workers said they could afford savings or holidays after bills, down from 45 % a year earlier. (dailymail.co.uk)
- 59 % of workers reported feeling strain in their jobs due to cost pressures. (dailymail.co.uk)
Sources
- [1] dailymail.co.uk — originally reported as “Cash-strapped households take on debt at fastest pace in 33 years”
