A long-running cost-of-living crisis has left about 7.4 million UK households unable to afford essential items such as clothes, heating, and food, according to the Joseph Rowntree Foundation (JRF). The figure, reported four years into the crisis, represents 62% of low-income families surveyed who could not afford at least one essential in the past six months, up from 7.1 million a year earlier. The JRF’s poverty tracker notes that almost half of those affected skipped meals or reduced portions to cope with prices.
Newly appointed Prime Minister Andy Burnham has pledged to present plans aimed at giving households “breathing space” on living costs, including a VAT cut on electricity bills from October. Elaine Yates, a 77-year-old pensioner in rural Northamptonshire, described how money worries have altered her daily life, saying she has not used her oven to cook hot meals for some time.
Campaigners warn that energy costs and heating are central to the hardship. Caroline Abrahams, Charity Director at Age UK, said extra help with energy bills would be welcomed by older people who often limit heating to keep costs manageable, even at the risk to health. The charity has urged the prime minister to broaden measures such as extending the Warm Home Discount to all low-income households.
The report also features Zoe Hayden, a 35-year-old single parent who fell into debt after losing her retail job during maternity leave. She described the day-to-day strain of rising prices, noting that in one shop visit she spent about £45 on basics, a sign of how ordinary necessities have surged in price. Hayden has since become debt-free and is pursuing a plumbing apprenticeship, but stresses that costs remain a barrier to providing for her family.
Separate findings from Christians Against Poverty indicate about 35% of UK adults worry about their finances daily. Juliette Flach, Acting Head of Policy and Public Affairs, points to the VAT cut as a relief but warns that incomes are not rising in step with the price of essentials. She stresses that many households are still making tough choices amid stagnant earnings.
Government officials say policy measures are beginning to bear fruit. A spokesperson highlighted a rise in real incomes by about 5% and a drop in food-bank usage and food insecurity. Policies cited include an above-inflation rise to Universal Credit and the firstever sustained increase to benefits above inflation, along with plans for a £1 billion Crisis and Resilience Fund intended as a safety net during financial crises.
The JRF survey covers around 4,000 individuals from the bottom 40% of incomes. Food inflation rose about 4.1% between May 2025 and May 2026, higher than overall inflation at 3.6%, underscoring how food costs weigh more on low-income households. The report also notes a fall of about half a million in the number of poorer households unable to keep their homes warm, attributed to energy bill reductions of roughly £150 a year from green levy changes and related support like the Warm Homes Discount.
As households adjust to an environment of rising prices and fluctuating energy costs, advocates call for broader and more targeted interventions to ensure all vulnerable families can meet basic needs without sacrificing health or security.
