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17 Jun 20:03

About our UK Cost of Living news

Latest news on the cost of living crisis in the UK, an ongoing event since 2021, in which prices for many essentials have increased faster than household incomes.

This has resulted in a fall in real incomes. The cost of living crisis has been caused in part by a rise in inflation in the UK, as well as the economic impact of global issues including the 2022 Russian invasion of Ukraine and the Covid-19 pandemic.

While many people have been affected by rising prices, the cost of living crisis is most substantially affecting those on low-incomes. Low-income households spend a larger proportion than average on energy and food, so are disproportionately affected by price increases in these areas.

The Resolution Foundation estimated that to afford the increase in energy bills in January-March 2023, the poorest fifth of households will have to cut back 24% of non-essential spending.

The UK government has stepped in with policies such as the Household Support Fund, but these government responses have largely been criticised as insufficient.

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