UK consumers remain cautious despite Budget relief, Mintel says
EWU•Mintel says the UK’s 2026 Budget offers incremental household relief but consumers remain cautious. In August 2026, 59% were very concerned about rising prices; a £100 energy payment will reach 20 million households, while a 3.9% minimum-wage rise will be offset in part by frozen income tax thresholds.
1. Relief remains incremental
The UK’s 2026 Budget offers some household relief, but Mintel says it leaves brands facing cautious consumers rather than a broad spending recovery. In August 2026, 59% of UK consumers were very concerned about rising prices.
2. Household spending pressures
A £100 energy payment will reach 20 million households in council tax bands A-D. Minimum wages will rise 3.9%, while frozen income tax thresholds will limit gains in spending power. Mintel says brands demonstrating tangible consumer outcomes will be better positioned to attract spending without relying solely on discounts.
