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

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.