Over the last decade, people and business in the UK have navigated staggering change including Brexit, a global pandemic and a cost-of-living crisis. During this time, Barclays has tracked shifts in UK consumer spending, which accounts for around 60% of the nation's GDP, with huge potential to unlock growth.

As one of the UK's largest banks with sight of 40% of credit and debit card transactions, our insight paints a fascinating picture. 

Our data shows that the macroeconomic shocks of the past ten years have chipped away at confidence in the strength of the UK economy, which fell from 45% at the end of 2015 to 28% in our most recent survey in May 2025.

Interestingly confidence reached its highest point in September 2016, following the Brexit referendum, at 48%, and (perhaps unsurprisingly) its lowest in October 2022, at 15%, following Liz Truss' 'mini-budget'. 

We have also seen fundamental shifts in how and where money is spent. Two thirds of UK consumers are paying more attention to their budget than they did 10 years ago. Yet discretionary spend grew by 9.2% annually on average 2021-2024, outpacing essential spend, as people prioritised memorable experiences such as travel and entertainment.

And we're tapping to pay, with 10 times as many monthly contactless transactions compared to 2015. Changing demographics in the UK have driven these shifts and will become significantly more important over the next decade. 

In 2015, Gen Z, those born between 1997 and 2012, hadn't yet reached adulthood, today they are three-times more likely to be saving for a major life milestone than anyone else.

Gen Z's economic influence is also rapidly increasing. We are standing on the brink of the 'great wealth transfer'. A projected $18.3tn in wealth is expected to be transferred globally by 2030, and in the decades ahead, Gen Z will be the largest beneficiaries, making them a growing economic force. Despite this, 67% of Gen Z consumers feel confident in their ability to live within their means – lower than the 74% national average. 

I view Gen Z as something of a financial paradox. They are set to come into significant wealth but lack the means to live comfortably today. Their spending is selective and purposeful, but they are also more prone to 'doom spending' – buying on impulse to soothe socio-economic anxieties.

Almost two thirds of Gen Z renters would find it impossible to buy a home without help but they are also prioritising spending on fitness, travel and beauty – because if their long-term financial goals feel unattainable, why not spend on the things that bring them joy?

To better achieve their financial goals and to navigate the 'great wealth transfer', Gen Z need financial confidence.

First and foremost, we must improve financial literacy. According to National Numeracy, 42% of 18-24 year olds seeking to improve their maths and numeracy skills say it's to better manage their money. 

Banks like Barclays have a responsibility to help. I'm proud that our LifeSkills programme gives young people access to financial education resources which have been used in 94 per cent of UK secondary schools. 

However, this is a complex issue that plays out beyond financial services and demands collaboration between different industries across the private sector and government. We must also help Gen Z to access credible, trustworthy financial advice, particularly when it comes to growing their financial resilience and wealth. 

Our research shows that a quarter of Gen Z plan to invest more money in the next three years, and that 46% of young people use Tik Tok for financial advice. I find this alarming, given that over half of retail investors don't carry out basic checks when using finfluencers' guidance, making them vulnerable to investment scams and poor advice.

It would be helpful for social media platforms to introduce a verification system to help Gen Z identify credible influencers. 

There is also a clear need for education and support to help Gen Z understand how to manage, invest, protect and make the most of their money. Gen Z are already defining UK spending. In five years, they will account for up to 70% of the workforce. In a decade, they will be considerably wealthier than they are today. 

This generation is due to reshape the financial system; by building their financial confidence, we can support them to make the most of their money and lay the foundations for a growing, prosperous economy.

This article originally appeared in the Daily Mail and contains references and data drawn from the 'Barclays 10 years of Spend' report.