Britain’s young adults are struggling to escape financial dependence on their families, with fewer than one in five people aged 18 to 24 able to stand on their own financially as soaring living costs, housing pressures and insecure incomes threaten to trap a generation in debt.
Just 19 per cent of Gen Z adults surveyed said they were financially independent of their parents or other relatives, according to research by the Personal Finance Research Centre at the University of Bristol, conducted with StepChange Debt Charity and funded by NatWest Group.
Only 49 per cent of those aged 18 to 24 said they could afford basic living expenses from month to month, underlining the strain facing young people attempting to establish themselves in an increasingly expensive economy.
Across all age groups, only 57 per cent of respondents said they were financially independent from their families.
The findings point to a growing challenge for younger households, with the cost of housing and essential bills leaving many unable to build savings, manage unexpected expenses or make the transition to independent living.
The pressure extends well beyond early adulthood. StepChange data show that among its clients aged 18 to 34, more than two-fifths — 44 per cent — had borrowed money to cover housing costs. Almost half, or 49 per cent, said their earnings were insufficient to meet essential outgoings.
Three-quarters of these younger clients had first used credit before turning 21, raising concerns that borrowing is becoming an early feature of financial life rather than a temporary solution to unexpected costs.
Vikki Brownridge, chief executive of StepChange, said the traditional promise of adulthood — stable employment, financial independence and the ability to build a secure future — was increasingly difficult to achieve.
“Increasingly, however, that aspiration is out of reach,” she said.
“Even for those entering their 30s, huge housing costs are preventing many younger adults from taking important financial steps forward, delaying independence and making it harder to build financial resilience.”
She warned that difficult employment conditions, early reliance on credit and continued economic uncertainty were intensifying the pressures facing younger generations.
The research also highlights the enduring consequences of the Covid-19 pandemic. A third of adults aged 18 to 34 said the pandemic had negatively affected their career progression, compared with 23 per cent of those aged 35 to 49 and 16 per cent among people aged 50 to 64.
Jamie Evans, the report’s lead author and a research fellow at the University of Bristol, said young adults were still experiencing the pandemic’s effects on their careers, finances and wellbeing six years later.
“On top of this, cost-of-living pressures are not letting up, meaning that consumer credit is often bridging the gap between income and essential outgoings for young adults,” he said.
“Without early support, these debts can quickly escalate.”
The warning comes as Britain’s lenders anticipate further deterioration in household credit conditions. The Bank of England’s latest Credit Conditions Survey indicated that credit card defaults had risen in the three months to the end of August, with banks and building societies expecting further increases by the end of November.
Karim Haji, KPMG’s global and UK head of financial services, said the figures suggested some households were relying on credit while struggling to manage existing debts.
The findings also challenge assumptions about young consumers and their willingness to embrace new financial technology. Some 51 per cent of 18 to 24-year-olds said they would not be willing to use artificial intelligence for financial tasks, broadly in line with the national average of 49 per cent.
Haydn Williams, NatWest’s head of financial health and support, said housing costs, insecure income and early reliance on borrowing could combine to create significant barriers to financial resilience.
The report draws on several sources, including data from 71,000 StepChange clients aged 18 to 34 who received advice in 2025 and a YouGov survey of more than 4,200 people across the UK in August and September.
For policymakers, the figures present a stark challenge: without more affordable housing, stronger financial security and earlier debt support, a generation entering adulthood could find that independence remains an aspiration rather than an achievable milestone.
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