Monday, January 02, 2023

The Crisis of the Cost of Living

 More than a third of UK adults would find it difficult or impossible to cope with a £20 increase in their monthly outgoings, as the cost of living crisis hits household finances.

Citizens Advice found that 37% of adults would struggle to find an extra £20, with 25% saying they would find it “somewhat difficult”, while 7% said it would be very “very difficult,” and 4% “impossible,” PA reported.

The charity said people were increasingly resorting to desperate measures to get by, for example by eating only cold meals.  

The charity’s chief executive, Dame Clare Moriarty, said: “Millions of households are at financial breaking point: running down savings, going without bare essentials and turning to food banks to get by. We’re already seeing record numbers of people coming to us for crisis support and this research shows people simply cannot cut back any further..."

The Citizens Advice survey, of 2,000 UK adults by Public First between 5 and 9 December, showed nearly a quarter (23%) had spent more money on essentials such as food, toiletries and energy, than they had coming in over the past three months. More than two-thirds of them (67%) said they could only keep this up for six months or less without additional support. A third of people said they had to dip into their savings in the last three months to get by, but more than half (56%) of this group said they had either run out of savings or expected to do so in the next three months.

This persistent financial stress is taking its toll on people, with 28% losing sleep at least once a week over their finances.

Around one in seven said they had been eating cold meals over the winter to reduce their energy costs.

It supported a record number of people in December, helping them access emergency grants and referring them to food banks.

StepChange, the UK’s largest debt advice charity, told the Guardian that more people were using candles or not putting the cooker on “because they’re scared of the bills”.

More than third of UK adults would struggle to find extra £20 | UK cost of living crisis | The Guardian

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