Cost of living crisis leaves quarter of adults struggling to pay bills

Nearly a quarter of UK adults (23%) found it difficult to pay their household bills in the last month compared to last year, according to the Office for National Statistics (ONS). 

Researchers discovered the amount of adults living in the most deprived areas of England who were struggling to cover bills was 9% higher than in November 2021, increasing by 25% to 34%. 

On the other hand, 7% more of those living in the least deprived areas found it difficult to pay bills, rising from 10% to 17%, showing how the cost of living crisis is hitting the poor hardest. 

The crisis has affected nearly all areas of the UK, with nine in ten adults (87%) reporting an increase in their cost of living over the last month, increasing by 25%. 

Rising prices of food and shopping was the most common reason given for the increased cost of living, while gas and electricity bills was the second and price of fuel was the third. 

Independent think-tank, the Resolution Foundation, which focuses on improving living standards for those with low-to-middle incomes is calling for more government support. 

Jack Leslie, Senior Economist at the Resolution Foundation, said: ‘Today’s ONS release shows that the cost of living crisis is already hitting UK families hard, with over four out of five adults already reporting an increase in their living costs between February and March 2022, and over two in five reporting that they were struggling with rising energy costs in March – before the lifting of the price cap in April.

‘The combination of shrinking pay packets and rising costs means that the pressure on households is building, with lower-income families set to feel the squeeze the most, and over a third of the most deprived fifth of households in England already saying it has been difficult or very difficult to pay their usual bills. This is set to get worse, with the estimated number of households experiencing fuel stress hitting five million this month.

‘Going forwards, the Government must do all it can to protect those who will be hardest hit – with support for low-income households a priority.’

Photo by Hanson Lu