Cost of Living Continues to Keep Scots' Awake at Night

23rd August 2026

Tracker survey reveals financial strain is impacting people's daily lives, leisure activities and health.

The ongoing cost of living squeeze remains a dominant issue for Scots. According to the latest Understanding Scotland Economy Tracker, almost half (47%) identify inflation and living costs as one of the most important issues facing the country for a second consecutive quarter.

The latest findings suggest an increasingly anxious public where financial strain is directly impacting daily life, leisure and health. 

Other key findings include:

• More than two-thirds of Scots who expressed an opinion (68%) say the economy is worse than it was a year ago.

• A similar proportion (67%) expect economic conditions to worsen over the next 12 months.

• Only around a quarter of Scots (24%) believe things in Scotland are heading in the right direction.

The survey also highlights how economic pressure is shaping everyday behaviour across Scotland:

• More than half of respondents (52%) say they have reduced non-essential spending because of concerns about money matters.

• Half (51%) say they have cut back on leisure activities.

• Four in ten Scots (40%) say they have dipped into savings to meet higher costs.

• Three in ten say concerns about money have affected their mental health (30%) or caused them to lose sleep (29%).

The findings point to continued pressure on household finances, with large numbers of Scots changing spending habits and making difficult financial choices in response to rising costs.

The majority of Scots remain broadly positive about aspects of employment, attitudes towards income and living standards are markedly less positive:

• Nearly three-quarters of Scots (73%) are satisfied that their employment provides enough paid hours.

• Two-thirds (66%) are satisfied with their job security.

• However, just 37% are satisfied with their income level.

• Almost half (49%) are dissatisfied with how well their income covers the cost of living.

While cost of living pressures remain dominant, the survey points to a shifting set of public priorities.

Immigration has risen to a record high for the series, with one in four Scots (25%) identifying it as one of the country's most important issues. The proportion highlighting social care as a key issue has increased to 13%, its highest level since the earliest wave of Understanding Scotland in 2021, while the environment and climate change has also risen sharply to 13%, its highest level since late 2023.

Meanwhile, the proportion identifying healthcare and the NHS as one of Scotland's most important issues has fallen seven percentage points since May down to 40% or four in ten - its lowest level since January 2022.

Scott Edgar, Head of Analysis and Insights, The Diffley Partnership: 

“The cost of living remains the defining issue for Scots, and the findings suggest financial pressures continue to shape both public priorities and everyday behaviour.

While economic sentiment has become slightly less negative since May, large majorities still believe economic conditions are worsening and expect further deterioration over the coming year.

At the same time, we are seeing the public agenda broaden. Alongside concerns about household finances, issues such as immigration, social care and climate change are becoming more prominent, reflecting a public that is responding both to events happening in Scotland and across the UK.”

Susan Murray, Director, David Hume Institute:

“This survey continues to show a ticking time bomb for those under financial strain as they struggle to make ends meet. A significant proportion of people are forced into behaviours that will have a detrimental effect on their long term health. 

Any government talking about economic growth needs to remember a tired and stressed workforce is not good for productivity or the labour market.”

The Understanding Scotland Economy Tracker surveyed 2,186 adults across Scotland between 2 and 5 August 2026.  The survey has been tracking public opinion and behaviour on the Scottish Economy since October 2021.

ENDS

Notes to editors:

Designed by the Diffley Partnership and the David Hume Institute, the survey received 2,186 responses from a representative sample of the adult population, aged 16+, across Scotland. Invitations were issued online using the ScotPulse panel, and fieldwork was conducted between the 2nd and 5th August 2026. Results are weighted to the Scottish population (2024 estimates) by age and gender.