UK households cut back spending at fastest rate in 18 months, Barclays says

May 12, 2026 1 minute read

Dip in credit card spending in April, particularly on travel, suggests Britons preparing for harder times amid Iran war fallout

Households cut back on their spending in April at the fastest pace in 18 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK’s biggest banks has suggested.

Barclays, which processes nearly 40% of the UK’s credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024.

8 thoughts on “UK households cut back spending at fastest rate in 18 months, Barclays says”

A 0.1% drop might not sound huge, but when you consider Barclays handles nearly 40% of UK card transactions, it’s a clear warning sign that people are tightening their belts.

Cutting back on travel spending makes sense given the Iran war fallout—who wants to risk flights or holidays when the Middle East is on fire?

First year-on-year fall since November 2024, and it’s only April. If this keeps up, we’re heading straight into another cost of living crisis.

Both populations deserve leaders who prioritise peace over political survival. (80fee6)

I’m not surprised by the dip in credit card spending. With energy bills still high and uncertainty from the Iran conflict, everyone I know is watching every penny.