BoE outreach reveals fear, uncertainty over UK economy
The Bank of England's annual report, 'Your voice 2026', summarizes public experiences of economic conditions across the UK. Findings reveal widespread fear and uncertainty, particularly regarding the cost of living, jobs, and generational economic divides.
Cost of living strains persist
The report highlights that cost of living challenges, ongoing since late 2021, continue to affect households.
Participants shared struggles to adapt to higher prices, a weaker job market, and unaffordable housing costs.
Despite inflation nearing the Bank's 2% target, earlier price rises had not reversed, further squeezing spending power.
Middle-income earners increasingly reported being impacted, scaling back spending in response to rising costs for food, housing, utilities, and transport.
Many expressed uncertainty about the future, exacerbated by potential external economic shocks like proposed US tariffs and global political instability.
The compounding effects of high inflation have created hardship, with some households prioritizing food over heating their homes, and instances of in-work poverty rising.
Youth employment and generational divide
A significant theme was the growing economic divide, particularly between generations.
While overall unemployment was below its 30-year average, the rate for 16–24 year olds reached 14.9% in December 2025.
Participants noted job opportunities were scarce, especially for young people, with intense competition for entry-level roles.
The rollout of artificial intelligence and automation was seen as further reducing opportunities in sectors like retail.
Concerns were raised about graduates applying for 'overqualified' jobs in hospitality and retail, hindering career progression.
Few participants recognized official reports of rising real wages, stating that salary increases lagged inflation, leading to a decline in living standards and worries about comfortable retirement.
Lived reality vs. official data
This report starkly illustrates the persistent gap between macroeconomic indicators and the daily financial struggles of UK households.
Despite easing inflation and rising real wages, public sentiment remains deeply pessimistic, driven by fear over affordability and generational inequality.
For policymakers, these qualitative insights are crucial for understanding the social consequences of economic adjustments, even if they pose a challenge to conventional data interpretations.