Cost of Living Crisis Intensifies as Nearly Half of Britons Report Under £25 Weekly Surplus
A stark new survey has exposed the deepening cost of living crisis, revealing that almost half of Britons are left with less than £25 in disposable income at the end of each week. The research, conducted by Survation on behalf of the newly-launched Cost of Living Action (COLA) group in collaboration with The Independent, highlights the severe financial pressures facing households across the United Kingdom.
Widespread Financial Strain and Difficult Choices
The findings indicate that the majority of UK adults are being forced to make difficult financial decisions, with almost two-thirds (63 per cent) cutting back on essential items such as food and heating. The scale of the struggle is further emphasised by data showing that 40 per cent of Britons have just £100 or less remaining each month after covering essential expenses, while 13 per cent have nothing at all or are falling into debt.
Conor O’Shea, campaign coordinator of COLA, stated: "Millions of people are struggling with sky-high costs, and left in debt or with next to nothing left after paying bills each month. It’s no wonder people are feeling so worried and angry." The group asserts that the cost of living crisis has not diminished but has actually worsened, calling on the government to implement measures to end the crisis permanently.
Impact on Wellbeing and Future Outlook
The survey also uncovered significant effects on personal wellbeing and future perceptions:
- Almost 80 per cent of respondents report that the cost of living crisis has negatively impacted their personal wellbeing (79 per cent) and their outlook for the next twelve months (78 per cent).
- Close to two-fifths (37 per cent) have been substantially affected by rising energy bills and increasing food costs.
- Approximately half find it more challenging to pay energy bills (51 per cent) or afford other essentials like food, water, and clothing (50 per cent) compared to five years ago.
Hannah Peaker, deputy chief executive of the New Economics Foundation, commented: "At a time when we have been reminded of the lengths some politicians will go to protect the wealthy, this polling shows just how exposed most people are to the cost of living crisis. People are still struggling with sky-high energy, food and housing costs, while wages continue to lag behind."
Political Responses and Policy Demands
The cost of living has emerged as the nation's top concern, with nearly two-thirds (63 per cent) of people citing it as one of their three most important issues, far surpassing health (38 per cent), immigration and asylum (37 per cent), and the economy (33 per cent). Labour MP Yuan Yang, co-convenor of the Living Standards Coalition, emphasised the need for a comprehensive strategy: "The Cost of Living Action campaign has identified a critical challenge for those of us in Westminster to grapple with: that we need a holistic approach in order to create growth while tackling the cost of living crisis. As their campaign has correctly identified, this approach requires increasing incomes, reducing costs, and fairer taxation."
COLA has urged the government to take decisive action, including:
- Reducing energy bills by addressing excess profits in the sector.
- Ensuring wages and benefits keep pace with inflation and are sufficient to cover essentials.
- Implementing higher taxes on wealthy individuals and reducing housing costs through large-scale social housebuilding and private sector rent controls.
More than half of survey participants expressed agreement with all these proposals. The government, which has identified tackling the cost of living crisis as a key priority for the year, has faced declining popularity in polls amid ongoing political drama and economic pressures. Sir Keir Starmer reiterated the government's commitment in January, stating: "This Labour government is on your side, doing everything we can to ease the cost of living, and make life better. In 2026, the choices we made will mean more people begin to feel that positive change."
Broader Economic Context and In-Work Poverty
The crisis is set against a backdrop of broader economic challenges. Earlier this week, the influential Resolution Foundation think tank warned that Britain is experiencing a historic decline in living standards, with the current generation facing the slowest income growth in decades. Their report highlighted that in-work poverty is becoming increasingly prevalent, with 55 per cent of households living in poverty now including at least one working person.
The government has been approached for comment on these findings, as the data underscores the urgent need for effective policy interventions to alleviate the financial hardships endured by millions across the country.
