Cost of Living Crisis Continues to Squeeze Households Despite Signs of Easing
Exclusive research has revealed that more than four in ten households across the United Kingdom are still being forced to make significant financial cutbacks to afford essential bills. This comes despite early indications that the broader cost of living crisis may be beginning to ease for some segments of the population.
A comprehensive survey conducted by the prominent consumer group Which? has demonstrated that the income squeeze remains a stark reality for a vast number of people. The poll found that a substantial 44% of respondents reported being compelled to take drastic measures in the past month to cover costs such as utility bills, housing expenses, groceries, school supplies, or essential medicines.
Financial Adjustments and Missed Payments
These financial adjustments have included dipping into personal savings, selling valuable possessions, or borrowing additional money. While there are positive signs that the number of households facing such stark choices is gradually declining—down from 47% in December and a peak of 64% in September 2022—the situation remains deeply challenging for millions.
In a concerning development, the percentage of surveyed individuals who admitted to missing a household payment in the past month actually increased, rising from 4.5% to 5.8%. However, this figure is still significantly lower than the near 10% who reported missing payments back in November 2023, suggesting some volatility in household financial stability.
Consumer Confidence and Economic Outlook
The survey also uncovered shifting perceptions regarding the national economy. A growing number of people are beginning to believe that the UK economy has turned a corner, which may provide some relief for Chancellor Rachel Reeves and the Labour government. Lacklustre consumer confidence has been a key factor causing households with spare cash to hold back on spending, so any improvement in sentiment is crucial.
Nevertheless, public optimism remains cautious. Only 14% of adults surveyed think the UK economy will improve over the coming twelve months, while over half predict it will actually worsen, highlighting a persistent undercurrent of economic anxiety.
Voices from the Frontline: The Struggle of Unpaid Carers
The human impact of this ongoing crisis is vividly illustrated by the experience of unpaid carer Paul Ridley, aged 60, from Milton Keynes. Alongside his wife Sarah, Paul provides full-time care for their two adult children, including their 37-year-old son Keith, who is non-verbal, autistic, and lives with epilepsy and irritable bowel syndrome.
Despite the round-the-clock, complex nature of this care, which constitutes a full-time role for both parents, Paul does not qualify for Carer’s Allowance. The family also receives no discount on their council tax, placing an immense additional strain on their finances. As a trained chef, Paul is unable to work due to his caring responsibilities.
"The cost of living is causing people on benefits and low incomes to struggle," Paul states. "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."The Reality of Shrinkflation and Soaring Costs
Like countless other families, Paul has witnessed the price of food skyrocket, to the extent that he and his wife sometimes skip meals to make ends meet. He explains the tangible impact of shrinkflation—where products become smaller but prices remain high or increase.
"The weekly shop I found was around five bags for a family of four," Paul recalls. "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 costs represent another major concern for the family. Given Keith's irritable bowel syndrome, they are often required to run the washing machine up to five times a day, alongside frequent use of the tumble dryer. Furthermore, Keith's preference for having the back door open, regardless of the outdoor temperature, creates a difficult dilemma between comfort and cost.
"What do we do? Do we turn the heating off and risk getting cold or ill, or keep the heating on and let it go out the door?" Paul questions. "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."
Expert Analysis and Calls for Support
Rocio Concha, Which? Director of Policy and Advocacy, commented on the findings. "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," she said.
"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."
This exclusive research underscores a critical divide in the UK's economic recovery. While macroeconomic indicators may show tentative signs of improvement, the daily reality for millions, particularly vulnerable groups like unpaid carers, remains one of significant financial hardship and difficult choices.
