Millions of households struggle to afford essentials amid cost of living crisis

Created at 22 Jul · 12:41 AM1 source↑ Market-relevant

IN SHORT

Nearly two-thirds of low-income families, totaling 7.4 million households, are struggling to afford essentials like food, clothes, and heating, according to the Joseph Rowntree Foundation. Prime Minister Andy Burnham has pledged to address the crisis, including cutting VAT on electricity bills.

Key Numbers

7.4mhouseholds struggling to buy essentials

62%low-income families unable to afford essentials

7.1mhouseholds struggling a year ago

50%households skipped meals or cut portion sizes

£45annual saving from VAT cut on electricity

£50weekly petrol cost for one individual

13Clow heating thermostat setting

35%adults worried about finances daily

5%real terms increase in household incomes

£1bnCrisis and Resilience Fund

4.1%average food inflation

3.6%overall inflation

500,000fewer households unable to keep homes warm

£150average annual reduction in household energy bills

Who's Involved

Joseph Rowntree Foundation

anti-poverty charity that conducted the survey

Andy Burnham

Newly appointed Prime Minister promising cost of living relief

Elaine Yates

77-year-old pensioner struggling with essential costs

Age UK

Charity advocating for increased energy bill support

Caroline Abrahams

Charity Director at Age UK

Zoe Hayden

35-year-old single parent facing rising costs

Christians Against Poverty

Charity reporting on daily financial worries

Juliette Flachm

Acting Head of Policy and Public Affairs

Chris Belfield

Chief Economist at the Joseph Rowntree Foundation

Government spokesperson

Official commenting on poverty reduction efforts

↳ Why This Matters

The widespread inability of millions of households to afford basic essentials underscores a critical social and economic challenge in the UK, with significant implications for public health, well-being, and government policy. The situation highlights the inadequacy of current support systems and the urgent need for effective government intervention to prevent widespread hardship and poverty.

Key facts

7.4 million households are struggling to afford essential items.
62% of low-income families reported inability to afford essentials in the last six months.
Prime Minister Andy Burnham plans to cut VAT on electricity bills from October.
Many individuals are skipping meals or reducing portion sizes to save money.
Rising costs for food and energy are significantly impacting household budgets.

A significant portion of the UK population, particularly low-income families, are facing severe financial difficulties, struggling to afford basic necessities. According to the Joseph Rowntree Foundation (JRF), 7.4 million households, or 62% of low-income families, were unable to afford essential items in the past six months. This marks an increase from the previous year, highlighting the persistent nature of the cost of living crisis.

Individuals like Elaine Yates, a 77-year-old pensioner, shared her struggles, noting she can barely afford to use her oven for hot meals and rations her heating to save money. Similarly, Zoe Hayden, a single parent, described the shock of grocery bills for basic items exceeding £45 for less than two bags of shopping. Research from Christians Against Poverty indicates that 35% of UK adults experience daily financial worries.

In response to these challenges, newly appointed Prime Minister Andy Burnham has pledged to introduce measures to alleviate the cost of living pressures. These include a planned reduction in VAT on electricity bills starting in October. Charities like Age UK and the JRF have welcomed these steps but are calling for further interventions, such as increased support for energy bills and measures to control rental prices and improve Universal Credit adequacy.

A government spokesperson asserted their determination to combat poverty, citing recent statistics that show rising household incomes, a decrease in food bank usage, and reduced food insecurity. They highlighted ongoing efforts such as increasing the National Minimum Wage, removing the two-child limit on benefits, and launching a £1 billion Crisis and Resilience Fund.

Frequently asked questions

According to the Joseph Rowntree Foundation, 62% of low-income families, which is equivalent to 7.4 million households, are struggling to afford essentials.

Prime Minister Andy Burnham has promised to provide relief by cutting VAT on electricity bills starting in October and has pledged to set out further plans to help with the cost of living.

Individuals are skipping meals, reducing portion sizes, limiting heating use, and finding it difficult to afford basic groceries and transportation.

The government states it is determined to turn the tide on poverty through measures like increasing the National Minimum Wage, improving Universal Credit, and launching a Crisis and Resilience Fund.

What Happens Next

01Prime Minister Andy Burnham is expected to outline further measures to address the cost of living crisis.

02VAT on electricity bills is scheduled to be cut from October.

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How It Developed

A record 62% of low-income families, equivalent to 7.4 million households, reported struggling to afford essentials in the past six months.

Almost half of surveyed households skipped meals or reduced portion sizes to save money.

Prime Minister Andy Burnham promised to provide relief for the cost of living, including a VAT cut on electricity bills starting in October.

Elaine Yates, 77, described extreme financial hardship, stating she rarely uses her oven and limits heating use.

Zoe Hayden, 35, a single parent, highlighted the significant increase in basic grocery costs.

Research from Christians Against Poverty indicated that 35% of UK adults worry about finances daily.

The Joseph Rowntree Foundation noted that while household incomes have risen and food bank usage has fallen, the cost of essentials remains a major challenge.

A government spokesperson stated efforts are underway to combat poverty through measures like increasing the National Minimum Wage and Universal Credit.

Sources

'I can't afford to turn the oven on': 7.4m households struggling to buy essentialsBBC News