Research shows cost of living pressures beginning to ease – but millions still struggling
More than four in 10 households are still making cut-backs to afford essential bills despite early signs that the cost of living crisis may be easing for some, exclusive research has revealed.
A survey from consumer group Which? showed the income squeeze remains very real for large numbers of people. In its poll, 44% said they were forced do things such as dip into their savings, sell possessions or borrow extra money to cover utility bills, housing costs, groceries, school supplies or medicines in the past month.
There are indications that the number facing such stark choices is falling, having come down from 47% in December and a high of 64% in September 2022.
But as if to show we are far from out of the woods, the percentage of those surveyed who said they had missed a household payment over the past month rose from 4.5% to 5.8%. That said, it is almost half the near 10% who said so in November 2023.
The survey also found that more people are beginning to think the UK economy has turned a corner. That is likely to come as relief for Chancellor Rachel Reeves and the Labour government, giving lacklustre consumer confidence is one reason those households who do have spare cash are holding off spending.
However, just 14% of adults think the UK economy will improve over the next 12 months and over half reckon it will worsen.
Rocio Concha, Which? director of policy and advocacy, said: “While it’s good to see the number of households having to make financial adjustments – like dipping into savings and cutting back on essentials – reach one of the lowest levels seen in the last four years, many households are still struggling to make ends meet.
“With the cold weather continuing into February, the added pressure of keeping the house warm and cosy will only add to households’ financial stresses.
“We’d encourage anyone who’s struggling to seek free debt advice and to reach out to their bill provider for help. Businesses should also be doing everything they can to support customers who are struggling to make ends meet this winter.”
Unpaid carer Paul Ridley says he has seen no let-up in the cost of living crisis.
The 60-year-old, from Milton Keynes, and wife Sarah care for their two adult children, including son Keith, 37, who is non-verbal, autistic and has epilepsy and irritable bowel syndrome.
Despite Keith’s round-the-clock complex needs meaning it is full time role for both of them, Paul does not quality for Carer’s Allowance. They also don’t receive any discount on their council tax.
It puts an added strain on the family’s finances, with chef Paul unable to work because his responsibilities. “The cost of living is causing people on benefits and low incomes to struggle,” he says.
“In fact I know many who have moved abroad because it’s cheaper in other countries. Being a full time unpaid carer we don’t have that choice, it’s a luxury we cannot afford.”
Like many, Paul says the family has noticed the price of food soar, with he and his wife sometimes skipping meals. Explaining the impact of that over time, he said: “The weekly shop I found was around five bags for a family of four.
“For the same price today I am lucky to fill three bags and the items we buy seem to be smaller but costing more. My son is autistic and there are many items we have to buy him that have to be the same – change to another brand and he won’t eat it.”
Energy is another major concern, especially given Keith’s IBS means them having the run the washing machine sometimes five times a day, as well as the tumble dryer.
Paul went on: “My son likes to be out in all weathers and since Covid he will go into the back garden and if you shut the door behind him he gets upset so it could be 1 degree outside but he would want the door open. What do we do? Do we turn the heating off and get a cold or ill or keep the heating on and let it go out the door.
“Carers are already trying to cope with their caring duties. Imagine what the pressure of the cost of living does on top of their caring duties.”
