According to recent data from the Office for National Statistics, over nine out of ten adults feel their cost of living has increased, up from 62% in November last year.
Compared to 2021, 23% of people stated it was “difficult or extremely difficult” to pay their regular household costs in March. This is an increase from the 17% who said the same thing in November 2021.
Nearly one-fifth said they were borrowing or using more credit since 2021, and 43% said they will not be able to save up in the next 12 months, up from 34% in November.
About 43% indicated it was somewhat or very difficult to afford their power bills, while 3% said they were behind on rent or mortgage payments.
The fallout from the month’s increase in the energy price cap which was a record £693 per year increase, or 54% on average, is not included in the numbers because they do not cover April.
Other hikes, such as increases in council tax and National Insurance, will further strain finances starting in April. In addition to all the rising costs, fuel prices are also high, and inflation is likely to rise even higher.
The rise in the cost of living is said to be affecting people’s “financial resilience” as more and more consumers find it difficult to pay their bills, said Hugh Stickland from the Office for National Statistics.
We’ve published new analysis on the impact of rising costs of living on adults in Great Britain (for the period 16-27 Mar 2022).
— Office for National Statistics (ONS) (@ONS) April 25, 2022
Around 9 in 10 (87%) adults reported an increase in their cost of living over the past month – compared with 62% in Nov 2021 https://t.co/d8t4fYgfTi pic.twitter.com/JkxfJa7zsA
Senior Economist at the Resolution Foundation, Jack Leslie, added that the figures from the ONS report showed the cost of living crisis is “already hitting UK families hard”.
“The combination of shrinking pay packets and rising costs mean 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.”
Chancellor Rishi Sunak did try to curb these costs with 5p reductions in fuel prices and a decrease from 20p to 19p in National Insurance during his Spring Statement, however, consumers remain overwhelmed with the rise in the cost of living.