Nothing left to cut in my budget

If you’re staring at your budget spreadsheet, wondering what more you can possibly cut back on, you’re not alone. It’s a position many people in the UK are finding themselves in right now. You’ve likely trimmed every non-essential, swapped branded for basics, and negotiated better deals on your bills. But what happens when you’ve hit that budget wall and you’re still coming up short?

This guide will walk you through what ‘last resort budgeting’ really means, how to recognise when you’re already saving everywhere you can, and the support options available when budgeting alone just isn’t enough.

What is last resort budgeting?

Last resort budgeting is what it sounds like – a financial plan that includes only the most essential expenses needed to get by. That means:

• Housing
• Food and basic toiletries
• Utilities (gas, electricity, water)
• Travel costs for work or essential appointments
• Childcare or essential care costs
• Basic clothing (when absolutely necessary)
• Priority debts (like rent arrears, council tax, or court fines).

It leaves out anything not critical for survival, even if it previously felt essential, like your broadband, streaming subscriptions, or mobile data plan. The aim is simply to keep a roof over your head, food on the table, and the lights on.

It’s a harsh way to live, and if you’re already operating this way, you’re likely feeling the effects.

Signs you’ve hit your budget wall

Most people don’t jump to last resort budgeting by choice. It’s often the result of a long period of trying everything else first. You might recognise some of these signs:

• You’ve cancelled all non-essentials
• You shop only with a strict list and avoid treats entirely
• You’re skipping meals or eating less to save money
• You’re behind on at least one essential bill
• You feel there’s simply nothing left to cut.

If any of that sounds familiar, you may be past the point of standard budgeting advice. In short, you can’t cut costs any further.

Budgeting has its limits – and that’s okay

There’s a common idea that budgeting alone can fix any money problem. While it’s true that making a plan helps, it doesn’t change the maths if your income simply doesn’t cover your essential costs. That’s when it’s time to stop blaming yourself, stop tweaking the numbers, and look for support.

Even expert-level budgeting can’t solve a shortfall that comes from high rent, rising food prices, and energy bills that take up half your income. The truth is, many households are in this situation right now and it’s not because you’ve done anything wrong.

What you can do when there’s nothing left to cut

If you feel you’ve already saved everywhere possible, here are some practical steps to consider next:

1. Prioritise your essential payments
Start by identifying your priority bills. These are the payments that carry the most serious consequences if missed, like rent, council tax, energy bills and child maintenance. Focus on these first. You can use our bill prioritiser tool to figure out which bills are most urgent.

2. Speak to your creditors early
If you know you won’t be able to pay a bill, don’t wait until it’s overdue. Many providers are now required to offer support options, especially for vulnerable customers. They may offer payment plans, hardship support, or pause interest charges.

3. Check for extra income support
You might be entitled to benefits or local grants, even if you’ve never claimed before. Use the government benefits calculator to check what you could claim, including:

• Universal Credit
• Council Tax Support
• Discretionary Housing Payments
• Local welfare grants (from your council).

4. Look into professional debt help
If budgeting isn’t working and your debt is growing, it may be time to consider a debt solution. Solutions could include:

• Debt Management Plan (DMP) – an informal plan to make reduced payments to creditors.
• Individual Voluntary Arrangement (IVA) – a formal agreement to repay some of your debt over time, with debt included in the IVA potentially written off at the end.
• Debt Relief Order (DRO) – a 12 month break from repayments for debts included in the DRO which may be written off after 12 months have passed.
• Bankruptcy – last resort option where your outstanding debts included in the bankruptcy are written off. 

5. Don’t suffer in silence
You might feel like you’re failing. But reaching the end of your budget isn’t failure – it’s a sign that you need more support. You’re not alone, and there is help available. It might start with speaking to an adviser. Or simply by understanding your rights and your options. Either way, you don’t need to go through this on your own.

What not to do when money runs out

When your budget breaks down, desperation can lead to risky choices. It’s best to avoid:

• Relying on high-cost credit like payday loans, which often make things worse.
• Ignoring bills or debt letters as this can lead to enforcement action.
• Going without essentials like food or heating – there is support available to help with these, such as food banks and your local council’s Household Support Fund.

You don’t have to fix this alone

Reaching the point of last resort budgeting can be incredibly tough. But remember there are regulated, supportive services that exist to help people in your situation. Your problems might not be solved overnight. But with the right advice and support, you can take back control one step at a time.

You can get free debt advice from MoneyHelper. Or, you can contact MoneyPlus for advice, and we’ll help you look at the full picture. We’ll listen, explain your options, and help you work out the next steps.