Record 7.4 million households struggle to afford essentials

The latest findings from the Joseph Rowntree Foundation (JRF) suggest more families than ever are struggling to pay for basics including food, heating, toiletries and suitable clothing, even as inflation begins to ease.

The charity said the number of households unable to afford essential items has risen from 7.1 million a year ago to 7.4 million, the highest level since it began tracking the cost-of-living crisis in 2021.

One of the biggest shifts is that financial pressure is now reaching groups who have traditionally been less likely to struggle.

More than half (53%) of lower-income households not receiving means-tested benefits such as Universal Credit said they had gone without at least one essential in the past six months, up from 47% two years ago.

The research also found hardship has increased fastest among mortgage-free homeowners, pensioners, households without children and families without disabilities or long-term health conditions.

Despite the record figures, the report points to some encouraging signs that targeted support is helping.

JRF chief economist Chris Belfield said government measures to reduce energy bills, alongside falling wholesale gas prices, mean around half a million fewer households are unable to heat their homes than two years ago.

He said: “Government policy can work. We need greater intervention to control rental prices, make energy affordable and improve the adequacy of Universal Credit so everyone can afford the essentials.”

The figures come as Prime Minister Andy Burnham has made tackling the cost of living his first priority in Downing Street.

His Government has announced that VAT will be removed from electricity bills from October, saving the average household around £45 a year, alongside wider plans to ease financial pressures and “give people breathing space”.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Removing VAT from electricity bills is a positive statement of intent by the new administration.

“But it does not address the scale of what households are facing, with millions still left paying an unaffordable share of their income on energy and record levels of energy debt built up over successive winters of high bills.

Recommended reading

“The Prime Minister’s next move must be to go even further on bringing down the cost of energy and bringing in increased levels of targeted support for those who need it most: an enhanced Warm Home Discount, reformed Cold Weather Payments and an energy debt relief scheme.”

Although grocery price inflation has slowed, households are still spending around £156 more on food over a year than they were at the same time last year, underlining why many families continue to feel the squeeze despite signs that inflation is easing.

Have you seen the cost of your shopping and bills increase in the last year? Tell us in the comments below…