UK cost of living statistics 2023

Statistics about the cost of living in the UK are inescapable. Given that energy bills, food prices and other associated expenditures are already high, and expected to rise further, it’s perhaps not surprising that more and more people are seeking help with the UK cost of living crisis. 

Our research gathered the most recent cost of living statistics for the UK in 2023, to see how the rising cost of living will impact people, households, and businesses today and in years to come. 

Average household spend in the UK per year  

A breakdown of average household spend in the UK per year, broken down by category

In the first quarter of 2022, household spending growth (adjusted for inflation) stood at 0.6% compared to Q4 2021, and 12.6% up on Q1 2021. 

Total household expenditure for the first three months of 2022 stood at more than £355 billion, with more than £97 billion spent on housing (27%) and £43 billion on transport (12%).

A breakdown of total domestic expenditure by UK households 2021-22

By the end of 2021, total domestic expenditure by UK households exceeded £1.3 trillion–an increase of almost £113 billion from 2020. 

Over a quarter (27%) of spending can be attributed to housing, totalling in excess of £366 billion. This is followed by almost £155 billion worth of household spending on transport and just over £145 billion on recreation. 

With interest rates predicted to continue rising, ensure you have the best deal on your mortgage and compare mortgages

The smallest contributors to the total UK domestic expenditure for 2021 were health (approximately £23.7 billion) and education (around £35 billion). 

Predicted increase in household expenditure for 2022

A map of the expected price increase of UK household weekly expenditure 2022 by income bracket

Source: ONS

Those in the South East will be spending almost £325 a week more on living costs in 2022 compared to the previous year, whereas residents in the North East will be spending just under £235 a week extra. However, in terms of percentage increase, the rising cost of household living expenses will be about the same across the whole of the UK, at around 13% more a week in 2022 compared to 2021. 

Those living in London and the South East will see the biggest increase in their weekly household living costs, of around £75. Transport costs in the South East will increase by more than £21 on a weekly basis, followed by just under £20 a week for the East Midlands and the East of England. 

London, the South East, and Northern Ireland will all see the weekly cost of food and non-alcoholic drinks rise by at least £10, with housing costs in London increasing the most, by more than £17 a week on average. 

If you already have debts, you could consider a 0% Balance Transfer credit card to help reduce your interest payments.

A breakdown of the expected price increase of UK household weekly expenditure 2022 by income bracket

Source: ONS

When broken down by income, UK residents earning more than £69,000 a year can expect their household expenses to be almost £356 a month more in 2022 compared to 2021. Conversely, those earning less than £19,200 a year will see a rise of around £132 a week. 

As a percentage increase, all income groups will see proportionally about the same increase in monthly living costs, rising by 12% between 2021 and 2022. 

Those earning over £69,000 a year can expect a rise of £83 a week in living expenses, with more than £27 a week extra being spent on transport, and nearly £14 a week on food. For those earning less than £46,000 a year, the biggest proportional change in their weekly spending will come from housing, fuel, and power (somewhere in the region of an extra £11 a week). 

This is followed by transport, which will mean an extra £6.68 a week for the poorest in society, and £11.52 a week for the middle-income earners. 

A breakdown of the expected price increase of UK household weekly expenditure 2022 by age group

Source: ONS

When broken down by age, those between 30-49 and 50-64 will be marginally affected the most by the rising cost of living. Both of these age groups will see a rise of more than 12% in their household living costs between 2021 and 2022, whereas all other age groups will see a rise of about 11%. 

On a weekly basis in 2022, those aged 30-49 can expect to spend an extra £57 on household expenditure costs, compared to just over £29 more for the over 75s. 

Those between 50-64 can expect a rise of £17.60 a week in their transport costs—almost exactly the same as the under 30s will see in their housing, fuel, and power expenses. Interestingly, the older the age group, the smaller the rise in energy prices will be. For those under 30 years old, housing, fuel, and power expenses will increase by £17.59, compared to £5.86 a week on average for the over 75s. 

Food and non-alcoholic drinks make up another significant area for price increases in 2022, with those aged 30-49 predicted to spend an extra £11 a week on this category, compared to just £7.30 a week for the over 75s. 

Rising inflation - consumer goods and food prices 

Since 2021, the UK cost of living has been steadily increasing. Consumer prices, as measured by the Consumer Prices Index (CPI), were more than 10% higher in July 2022 than the previous year. 

This has been driven by many factors, including:

• High consumer demand 

• Bottlenecks in the supply chain 

• Rising energy prices (both energy tariffs and fuel costs). 

On the lips of many are questions about the cost of living—how will it impact them now and in the future? And which areas of life will be affected the most? Let’s start with food.

Source: ONS

Food budgets during a cost of living crisis are more than likely to take a hit, as producers are likely to pass any increase in production costs onto you (the consumer). 

Between April 2021 and April 2022, there has been a significant shift in the cost of consumer goods, the vast majority of which have seen a price increase. 

In the last year, a 500g bag of pasta has increased by over 50%—the highest increase of any food item. In April 2021, this would have set customers back 36p on average, compared to 53p as of April 2022. 

Crisps and bread have also both seen price hikes in the last year by more than 16%, followed by beef mince and rice, which were 15.7% and 15% more expensive in April 2022, respectively, compared to 12 months earlier. 

Some items have seen very little change in their costs, with tomatoes, yoghurt, bananas, instant coffee, granulated sugar, milk, and apples all costing one pence more in 2022 compared to 2021. 

Of the 30 items monitored in the ONS survey, just six items decreased in value over the 12-month period. Potatoes saw the greatest decline, falling by nearly 14%, followed by cheese (-7.3%) and pizza (-4.1%). Chips and sausages also saw a 3p drop in their average price between April 2021 and April 2022, equating to almost -3%.

Ways to cut the cost of your weekly shop during the UK cost of living crisis

According to our weekly shop index, the UK ranks as the 22nd most expensive country in the world for food shopping, with the average food cost per week just shy of £14. By contrast, the same food shop will set you back over £20 in the USA (seventh place), and almost £36 in Switzerland (first place). 

At the other end of the scale, the same basket of food will cost you just £6.66 in Turkey and £7.22 in Colombia—roughly half of what it does in the UK.  

Rising inflation - powered by energy prices

From July 2021 to July 2022, average domestic gas prices increased by 96%, with respective electricity prices rising by 54%. This was partly due to increasing demand for gas after the Covid-19 pandemic restrictions were lifted, lower than normal production of natural gas and the ongoing conflict in Ukraine. 

Low-income households spend a larger proportion of their income on energy and food, compared to the average UK household. Therefore, they are affected more by increased energy prices. 

The Resolution Foundation estimated that in order to afford the increase in energy bills between January and March 2023, the poorest fifth of households will have to cut back almost 25% of their non-essential spending. 

A typical, low-income household paying by direct debit is expected to need an extra £418 to cover their energy bills in the first quarter of 2023, compared to May 2022. By contrast, the richest 10% of UK households will have to absorb additional costs of around £560. 

However, in order to meet these increases, those in the lowest 10% for income will need to cut back their non-essential spending by almost 23% (roughly £1 in every £4), compared to just 8% for the wealthiest 10%—the equivalent to £1 in every £12—in order to cover the cost of higher energy bills in 2023. 

The October jump in energy costs will coincide with the winter season, when bills will naturally rise anyway as we spend more heating and lighting our homes. Almost 50% of UK annual household gas costs come between January and March. 

While it’s possible to heat your home for less by targeting the energy efficiency of your property, this often requires spending money in advance, which isn’t always possible. For those who are renting, it may not be possible to make the necessary changes without the explicit permission of the landlord/homeowner. Therefore, many will be looking to cut back on the cost of living by reducing overall consumption in the coming months  

The impact of conflict in Ukraine on energy prices 

In addition to the humanitarian, military, and political impacts caused by Russia’s invasion of Ukraine, there have also been impacts for the global economy—notably energy prices. 

For many countries, including the UK, this has resulted in higher energy prices. Following the conflict, gas prices on international markets have steadily fallen, whilst oil prices have remained high. As a result, UK fuel and domestic energy prices have increased, with further rises expected in the near future for both UK households and businesses. 

As Russia and Ukraine are also large producers of agricultural products (such as wheat), as well as some metals (such as aluminium and nickel), these products have become more expensive on the international markets. As a result, this has led to higher prices for UK consumers. 

A breakdown of oil prices per barrel in 2022

Immediately following the invasion of Ukraine on 24 February 2022, oil prices rose to more than $100 a barrel—their highest level since 2014. Over the subsequent months, prices continued to rise, reaching almost $125 a barrel in mid-June. By the beginning of September 2022, it had dropped to its lowest point since mid-January 2022, at $87 a barrel. As of 15th September 2022, the price of a barrel of oil stood at just over $93. 

European gas prices increased by around 50% on 24 February 2022, to almost £39 per million therms (around 11p/kWh). By comparison, Asian markets increased by 30% on the same day.

A therm is a unit of heat equivalent to 100,000 British thermal units (or 1.055 × 108 joules). It is roughly the energy content of 100 cubic feet of natural gas (at standard pressure and temperature).

In early March 2022, the daily price peaked at just over 17p/kWh, before falling back to 3-4p/kWh in May. Over the next three months, the price soared to between 10 and 12p/kWh in early August. 

Average cost of UK energy bills 2022 

The running costs and energy bills for flats are generally lower compared to houses, especially newly built rented properties with higher efficiency ratings. 

The amount of gas it takes to heat and run a purpose-built flat over 12 months is 40% lower than a converted flat. A one-bedroom home requires less than 50% of the gas needed to heat a three-bedroom house, while D and E energy rated properties require 25% and 48% more gas, respectively, compared to a C-rated home. 

Over the first quarter of 2022, the consumer price index (CPI) for all domestic fuels increased by 21% in real terms (accounting for inflation), compared with Q1 2021. In the same period, domestic gas and electricity prices also rose by 26% and 17%, respectively. 

An estimated 225,000 electricity customers and 158,000 gas customers transferred between providers during the first three months of 2022, both down by 84% compared to the same quarter in 2021. 

Prices in the manufacturing industry continued to rise at the beginning of 2022. The average price for electricity was over 17p/kWh—an increase of 66% on last year. Gas prices were around 4.6p/kWh, which more than doubled from Q1 2021. 

Road fuels sustained their price increase and reached record highs; the mid-month average for petrol in June 2022 was 183p per litre (13% higher than March 2022). Comparatively, the average price of diesel was 190p per litre (11% higher than March 2022). 

Average cost of UK energy bills for small businesses 2022

Source: money.co.uk via the Department for Business, Energy, and Industrial Strategy, Valuation Office Agency, and ONS

According to the latest projections for cost of living and business statistics, those in the health industry can expect to see the biggest increase in their energy bills between 2021 and 2022. Energy bills for this sector are expected to be more than 75% higher in 2022 compared to the previous year, and just under 75% more for community and leisure-based industries. 

Retail is expected to be the best off for 2022 out of all sectors. However, they can still expect their energy bills to be nearly 60% more expensive than in 2021.

Source: money.co.uk via the Department for Business, Energy, and Industrial Strategy, Valuation Office Agency, and ONS

In 2022, hospitals consumed more energy than any other type of business, with an average annual energy bill of over £793,000. This is predicted to be an increase of more than 70% by the end of the year. Nurseries, by contrast, spent less than £7,000 in 2022 on energy. However this resulted in the biggest percentage increase from 2021, of almost 75%. 

At the other end of the scale, small shops are forecast to have the smallest percentage increase in energy bills between 2021 and 2022, with bills expected to be 56% more expensive. This is closely followed by hairdressers, large food shops, and non-food shops, with these industries’ energy bills expected to be 58% more expensive in 2022 compared to the previous year. In real terms, this means their energy bills are twice as expensive in 2022 than 2021. 

Average UK electricity bill costs 

A breakdown of the total expenditure for different types of energy by UK households

For the past three years, total consumer expenditure for UK households was in excess of a trillion pounds a year. In 2021, this was more than £1.1 trillion—over £66 billion extra compared to 2020, but £59 billion less than 2019. 

Energy spending has decreased year-on-year (YoY) since 2019, from almost £57.5 billion, to just under £53 billion in 2021. Gas has increased slightly by around £1 billion over three years, to just over £12 billion in 2021, whereas electricity spending fell in 2021 by about £350 million. Vehicle fuels and lubricant also dropped to around £28 billion in 2021—£7 billion less than 2019. 

Average annual domestic electricity bills

Source: ONS

In 2021, the average UK electricity bill was £769—a rise of £70 over three years. Those on standard credit were paying £67 more than direct debit customers (£821 vs £754), and £42 more than prepayment consumers (£779). 

All three methods of payment rose between 2019 and 2021, with standard credit consumers increasing by 8%, compared to around 10% for those paying by direct debit and prepayment.

Average electricity bill for a small UK business

Source: money.co.uk via the Department for Business, Energy, and Industrial Strategy, Valuation Office Agency, and ONS

UK industries can expect a 35% increase in their electricity bills between 2021 and 2022. Those in the health sector consume more electricity than any other industry, at over 271,000kWh a year, more than twice that of arts and culture in second place.

As a result, health-based industries will spend, on average, almost £22,500 more on electricity in 2022 compared to 2021, whereas those in arts and culture will spend just under £11,000 extra on their respective electricity bills. 

Offices will have the cheapest electricity bills in 2022, at just over £13,500—around £4,700 more expensive than 2021.

Source: money.co.uk via the Department for Business, Energy, and Industrial Strategy, Valuation Office Agency, and ONS

When comparing business electricity costs between different business types, hospitals and large food shops can expect to have the most expensive electricity bills in 2022. Hospitals will see a rise of £151,000 by the end 2022, compared to around £145,000 for large food shops. 

Conversely, hairdressers use the least amount of electricity across all types of businesses. At just 12,775kWh, this is around two-thirds of the electricity consumption for the next highest (health centres). The average hairdresser will see a rise of more than £2,500 in their electric bills for 2022 compared to 2021, whereas small shops will see the next largest increase, at around £1,700.  

Average annual domestic electricity bills between different countries of the UK

In terms of total payments, very little divides those living in England, Wales, and Scotland, with average UK electricity bills for domestic consumption around £770. In Northern Ireland, this corresponding figure is just over £70 cheaper a year. In England, Wales and Scotland, these figures have increased by 9% since 2019, compared to almost 10% in Northern Ireland.

The most expensive method of payment in England and Wales in 2021 was by standard credit (£825 a year). This is around 16% more costly than paying by direct debit in Northern Ireland (the cheapest option in the UK). 

Most payment methods for annual domestic electricity bills in the UK have increased by around 8% in the three years since 2019, with the notable exception of direct debit payments in Northern Ireland, which have increased by more than 11%. 

Average annual domestic electricity bills between different regions of the UK

Source: ONS

All regions of the UK experienced a rise in their total domestic energy bills between 2020 and 2021. For the UK as a whole, households spent £769, on average, on their electricity costs in 2021—an 8% increase on the previous year. 

In 2021, the highest average UK electricity bills were those for residents in Merseyside and North Wales (£811 a year), followed by the South West (£798) and North Scotland (£795). By contrast, the cheapest annual electric bills could be found in the East Midlands (£750), followed by the North West (£753) and Yorkshire (£756). 

Merseyside and North Wales had the most expensive unit cost for standard credit payments at 24.1p/kWh. This is 1.8p/kWh more than the East Midlands—the cheapest location per unit. As a result, those living in Merseyside and North Wales are paying £66 more a year than those in the East Midlands for the same service. 

These two regions also offer the most expensive and cheapest electricity rates for direct debit customers, with those in the East Midlands saving £59 a year by comparison.

For homes with prepayment metres, Merseyside and North Wales is once again the most expensive location, with the North West offering the cheapest rates and annual bills. Residents here will save around £62 a year on their electricity bills should they pay by prepayment, compared to their counterparts in Merseyside and North Wales. 

Average units costs and fixed costs for electricity across different UK regions

The average variable unit price represents the energy costs directly associated with varying energy consumption.

The average fixed cost represents the energy costs which do not vary with consumption, such as any standing charges. When there are two unit prices, this includes the difference between the two prices, multiplied by the split level.

Source: ONS

In 2021, UK households spent, on average, in excess of £88 a year on fixed electricity bills. This represents a rise of less than 2% from 2020. 

Those living in North Scotland will incur the costliest annual electricity bills for fixed charges, at over £102 a year. This is more than £15 more expensive compared to the East Midlands—the cheapest location. 

The average variable rate for those paying by standard credit, direct debit, and prepayment methods hardly varied in 2021, falling somewhere between £0.21/kWh and £0.18p/Kwh for all regions. For all three methods of payment, North Scotland proved to be the costliest in 2021, with Merseyside and North Wales also proving to be the most affordable. 

Standard credit customers paid £114.25 a year, compared to £114.35 on prepayment, and £96.03 on direct debit. The corresponding savings for those living in Merseyside and North Wales would be £16.33, £14.24, and £15.13 per year, respectively, should their residents choose the same payment options. 

Average UK gas bill costs  

Average annual domestic gas bills

Source: ONS

Between 2019 and 2021, UK households witnessed a decrease in their gas bills. In 2021, the average UK gas bill for domestic use was £564. This was a 7.5% reduction on the average from 2019, and 3% less than 2020. 

Standard credit consumers, on average, pay more than direct debit or prepayment customers. In 2021, standard credit payments averaged just over £600 per year. This was £51 a year more than direct debit customers and £14 a year more than the prepayment option. 

Average gas bill for a small UK business

Source: money.co.uk via the Department for Business, Energy, and Industrial Strategy, Valuation Office Agency, and ONS

UK businesses can expect a 49% rise in their gas bills for 2022. The health sector uses more gas than any other industry (almost 750,000 kWh per year). This is more than three times the amount of community and leisure-based industries in second place. Retail uses the least amount, at just over 22,000 kWh a year. 

When comparing business gas costs, the gas bill for health industries will almost double in 2022 to more than £88,000 a year—an additional £43,000 compared to 2021. Community and leisure, as well as arts and culture, will see their bills rise by around £12,000, to somewhere between £25,000 and £27,000 a year. Retail’s gas bill will remain the smallest, rising up to more than £2,600 a year, from just over £1,300.

Source: money.co.uk via the Department for Business, Energy, and Industrial Strategy, Valuation Office Agency, and ONS

When broken down by business type, hospitals top the table in terms of gas consumption, using about three times as much as nursing homes. By consuming more than six million kWh a year, their gas bills can expect to exceed £360,000 in 2022—almost £177,000 more than in 2021. 

By contrast, nursing homes (the next biggest user of gas) will see a rise of a little less than £57,000 in their 2022 gas bills. 

At the other end of the scale, small shops use around 3,200 kWh of gas a year, costing them less than £195 a year on average in 2021. This will almost double to around £380 in 2022.

Average annual domestic gas bills for different countries of Great Britain

 Gas is not widely consumed in Northern Ireland, so has not been included in the data.

Across all payment types in England, Wales, and Scotland, the average gas bill for UK households for 2021 was around £560. This was an 8% reduction from 2019. 

Those on standard credit payments in England and Wales pay, on average, £604 a year for their gas. This is £57 a year more than those on direct debit in England and Wales—the cheapest payment option in Great Britain for domestic gas. 

In Scotland, those on standard credit pay just under £600 a year for their domestic gas consumption. This is around £25 more compared to those on direct debit or prepayment schemes. 

Average annual domestic gas bills for different regions of Great Britain

 Gas is not widely consumed in Northern Ireland so has not been included in the data.

Source: ONS

All regions of Great Britain saw a fall in their total domestic gas bills between 2020 and 2021. For the UK as a whole, households spent an average of £564 on their gas costs in 2021—a 3% reduction on the previous year. 

The highest average gas bills in 2021 were for those living in London (£583 for the year), followed by the South West and Southern regions (both £577). By contrast, the cheapest annual gas bills were found in the North East and the East Midlands (both £545). 

The Southern area of Great Britain had the most expensive unit cost for standard credit payment in 2021, at 4.58p/kWh (0.26p/kWh more than the North East—the cheapest location per unit). As a result, those living in the Southern region were paying £35 more a year than those in the North East, for the same service. 

Southern customers also face the most expensive bills for direct debit payments, paying £34 a year more than those in the East Midlands by comparison. However, this was the cheapest payment option for the majority of regions within the country. 

For prepayment customers, London and the Southern region are the most costly, at £593 a year. This is £62 a year more than those in the North East, who only pay £562 on average for their domestic gas bills.  

Average units costs and fixed costs for electricity across different UK regions

The average variable unit price represents the energy costs directly associated with varying energy consumption.

The average fixed cost represents the energy costs which do not vary with consumption, such as any standing charges. When there are two unit prices, this includes the difference between the two prices, multiplied by the split level.

Source: ONS

In 2021, British households spent, on average, £99 a year on their fixed gas bills (almost the same as 2020). 

Those living in London incurred the costliest gas bills for fixed charges in 2021, at almost £104. This is £6 a year more than the cheapest part of Great Britain (the Southern region). 

The average variable rate for those paying by standard credit, direct debit, and prepayment methods varied very little throughout 2021, falling somewhere between 3.78p/kWh and 3.17p/kWh across all regions.   

On average, those in Scotland end up paying more compared to those in the rest of Great Britain. Standard credit customers in Northern Scotland paid almost £113 for their domestic gas usage—£22 a year more than those paying by direct debit in the Southern region (the cheapest option). 

There was very little difference in prepayment options for fixed gas charges across the country, with only 40p between the most and least expensive areas, South Scotland and the South West, respectively.                   

UK energy price cap 

A price cap is introduced in order to stop companies from making excessive profits, and ensure consumers pay no more than a fair price on their energy consumption. It was traditionally updated twice a year and tracked the wholesale energy cost in order to decide how much the cap should be. 

After dozens of energy suppliers went bust as a result of soaring prices not keeping up with the six-month review process, Ofgem changed this to a quarterly process in August 2022. 

Under the price cap, energy companies can pass on ‘reasonable costs' to the consumer, including any increases associated with buying gas from its source. From April 2022, energy companies are also allowed to pass this additional cost onto UK customers because they cannot afford to supply gas and electricity for less than they have paid for it. 

Between 2021 and 2022, 29 energy companies either left the market or have been put into administration due to rising global gas prices. This has affected around 4.3 million UK customers. 

In February 2022, the UK regulator Ofgem announced the energy price cap would increase from 1st April 2022 by 54%, from £1,064 to £1,971 for typical annual consumption.

Concerns over a mammoth rise in prices just as winter began, the Government stepped in to limit the price cap to £2,500 for a typical household from October 2022 for the next two years. However this will now only last until April 2023. 

The price cap is a limit on the cost of a unit of gas/electricity, with standard charges taken into account. It is not a cap on consumers’ overall energy bills, which will rise and fall in line with their overall energy consumption. From 1st April 2022, for the average customers paying by direct debit, the equivalent per unit level of the price cap (to the nearest penny) is 28p per kWh for electricity and 7p per kWh for gas. 

The UK energy price cap has directly impacted approximately 22 million UK consumers, particularly those on default or variable rates on credit metres. This will affect customers in various ways, depending on how they choose to pay their energy bills. For example: 

• Those on default tariffs paying by direct debit will see an increase of almost £700, from £1,277 to £1,971 a year. 

• Prepayment customers (about 4.5 million UK households) will experience a rise in excess of £700, from £1,309 to £2,017. This will result in additional fees of £47 a year compared to those on direct debit payment plans. 

• Customers who pay by standard credit (i.e. cash or cheque) will pay an additional £130, based on the higher costs required for energy companies to supply them. 

The price cap increase is the result of a record rise in global gas prices over the past six months, with wholesale prices quadrupling in the last year alone. 

The Energy Price Guarantee came into effect from 1st October 2022, reducing the unit cost of electricity and gas. This means a household with typical energy usage in Great Britain will pay the equivalent of £2,500 a year, but only up until April 2023 at the time of writing. 

Based on current prices from October 2022, the average household should save around £1,000 a year. However this will vary depending on:

• Where you live in the country

• How much energy you typically use

• How you pay for your energy

• Any metering arrangements you may/may not have in place. 

These values include VAT, and are expressed for the current Typical Domestic Consumption Values (TDCV) of 2,900kWh of electricity, 12,000kWh of gas, and 4,200kWh of electricity for Economy 7 meter tariffs.

According to Cornwall Insight, without the Government’s intervention, the energy price cap could increase by a further 52% in January 2023, to around £5,387. 

The future of UK energy bills 

By January 2023, it is estimated that those living in energy-inefficient homes in the UK will be paying £231 more for their heating bills, compared to those living in homes with an EPC rating of C (i.e. those that already meet the UK Government efficiency target). 

Across the 2022-23 winter period, this will equate to £849—an extra £141 a month. 

By breaking the average UK gas bills down, the daily cost of turning on gas heating will be £7.34—even for those in properties with an EPC rating of C. For those in poorly insulated accommodation, this will rise by more than half (58%) to £11.60 a day. 

In the winter of 2018 and 2019 (the last pre-Covid winter in the UK), there were 28,300 excessive deaths in England and Wales. The World Health Organisation (WHO) estimates that 8,500 of these could be attributed to insufficient heating in homes. 

By January 2023, the unit price of gas is set to be four times higher compared to the winter of 2018-19, which could result in further excess deaths over the winter period. 

Average UK water bills

Source: Individual companies listed above via Statista, 2022. (*Average bills from April 2022 to March 2023 are estimates based on forecast data provided by water companies.)

As of 2022, the cheapest cost for average UK water bills was supplied by Portsmouth Water. With an average of £103 a year, their customers are £41 a year better off than the next cheapest, Bournemouth (£144), and £45 better off compared to Cambridge Water in third (£148). By contrast, the most expensive water bill is supplied by Affinity Water, at an average of £232 for 2021 and 2022 (more than double that of Portsmouth). 

The projected figures for 2022 and 2023 place Wessex Water as the most expensive location for water rates in the UK, at an average of £244 a year for their water bill. Portsmouth is expected to hold onto its crown of most affordable region for domestic water bills into 2023, with a nominal rise of £1 in its average bill, to £104 a year. 

Of the 21 companies, 12 increased their average annual water bills between 2020 and 2022, eight decreased them, and only one (Cambridge Water) held them level. Essex and Suffolk Water decreased the most (£23 on their average annual bill), whilst Affinity South East increased the most (£7).

Rising cost of living - housing

Average house prices in the UK 2022

Average house prices in the UK increased by 15.5% over the year to July 2022, a rise from 7.8% in the previous month. Between June and July 2022, there was a jump of £6,000 in the cost of the average UK property, compared to a fall of £13,000 between the same months in 2021. 

A breakdown of regional average property prices in England 2022

Regionally, London remains the most expensive area to purchase a property, with the average exceeding £543,000, whereas the most affordable part of the UK on average is the North East, at about £163,000. 

Between June and July 2022, average house prices in the UK grew the most in the West Midlands (3.8%), followed by the North East (3.7%). The smallest monthly growth was experienced in the East Midlands (0.6%). 

The region with the largest growth in average house prices since July 2021 was the South West. Property prices in July 2022 were around five times more expensive than the previous year, followed by the West Midlands at 18%. London saw the smallest annual growth at 9.2%. 

As of September 2022, Rightmove reported that the average price of new properties coming to the UK housing market was around £367,000 (0.7% on the previous month). This highlighted that house sellers are continuing to raise their asking prices, despite higher interest rates and a rising cost of living. On average, this equated to more than £2,500 a property.

A breakdown of the rate of annual change to UK house prices between 2018-22

Over the course of 2021 and 2022, the UK housing market witnessed a degree of turbulence, with fluctuations between roughly 8-13%. From January 2018, the percentage change dropped from 4.3% to 0.6% in August 2019, after which it rapidly increased to 8.9% in March 2021. In July 2022, this reached a peak of 15.5%. 

A breakdown of average property prices between different countries of the UK between 2012 and 2022

In the previous 10 years, all four regions of the UK have seen sustained growth in the average price of their properties. 

For England, the average property increased throughout 2021 and 2022 to almost £312,000 (+16.4% compared to July 2021). In Wales, the corresponding figure was just below £220,000 (+17.6%), whilst Scotland was marginally under £193,000 (+9.9%). Northern Ireland remains the cheapest part of the UK to purchase a property, with average prices of £169,000 (+9.6%). 

At the start of 2012, the average price of a house in England was just a little more than £174,000 (around 44% of the cost compared to July 2022). In Wales, the corresponding figure for January 2012 was around £127,000 (42% on 2022 prices), whereas in Scotland, a property will set you back about £67,000 more in 2022 compared to 2012. 

Northern Ireland has seen the smallest growth in its property prices across the last 10 years. In 2012, the average property would set you back around £104,000 (just £64,000 less than 2022). 

Average UK house prices by property type

Source: HM Land Registry

As of July 2022, the average UK house price was £292,000—£39,000 higher than July 2021, and around £40,000 higher than the previous year. 

Detached properties in the UK saw the largest increase in their average price, costing £67,000 more in July 2022 compared to July 2021. This represented a rise of more than 17%, compared to just under 16.8% for semi-detached, and 16.5% for terraced housing. Flats and maisonettes had the smallest percentage increase, at around 9% throughout the last 12 months. This equated to around £20,000 more than the previous year. 

Rising cost of rent 

According to Zoopla’s UK market rental report for Q3 2022, rental growth is close to peaking at 12.3% a year. Average UK monthly rent rose by £115 a month across the last year to £1,051, with rental rates in London now standing at 17.8% compared to a year ago. 

The UK has a distinct supply-demand issue when it comes to rented accommodation. Compared to the UK’s five-year average, demand for rental properties is up 142%, compared to 2021 and 2020 when it was just 64% and 20% higher, respectively. However, the stock of UK rental accommodation in 2022 is 46% lower compared to the 2017-22 average, with the flow of new supply onto the market standing at -7% for the same time period.

The ONS rental index tracks growth across all rental homes. This is, on average, 3.7% more expensive in July 2022 compared to 12 months earlier. However, those moving to a new rented property will find the cost of renting 12.3% higher than those who remain renters in their existing property. This is because rents for new lets reflect the current levels of supply and demand at the time of moving. 

Seeing as the average renter moves every four years, and given the widening UK cost of living crisis, people may think twice about whether to find a new rental property, and choose to stay put in their current one. This will amplify the squeeze on supply, and risk keeping the pressure on the UK rental market into 2023.

Over recent years, there has been a reduced demand for two and three-bedroom houses, down to around 11% for each in 2022, whereas two-bedroom flats are up to 35%. The growth in demand for one-bedroom flats slowly grew between 2020 and 2022, from 30% to 32%. 

According to our cost of living index, the UK ranks 12th best in the world when it comes to rent, monthly outgoings, and other associated living costs. The affordability of renting is broadly in line with the long-term average (LTA) since 2009. In Q2 2022, rent accounted for 34.4% of earnings, compared to an LTA of 33%. This figure did drop to a low of 31.9% in Q1 2021, but has since slowly been on the rise, as the average price of rent continues to increase faster than the rate of pay. 

Private rent price increase in the UK

A breakdown of the change to UK average monthly rent for private properties between 2016 and 2022

Private rental prices in the UK in July 2022 were 3.2% higher than 2021—the largest increase in the previous six years. 

At the start of 2016, UK private rental charges were on average 2.6% higher than in January 2015, which then fell to 0.9% in July 2018. A period of steady increase with some fluctuations saw them reach 2.1% in January 2022, before rapidly increasing to 3% only six months later. 

In London, the private rental market has been more volatile than the rest of the country, with the changes far more extreme over the given six-year period. In 2016, the average rental property in London was 3.9% higher than the previous year. This rate dropped dramatically in May 2018, when prices reached negative values for the first time in recent history (-0.2% compared to May 2017). 

Following this, private rental prices have gradually increased and decreased between -0.3% and 1.3%. Since May 2022, the percentage change started to increase relatively quickly, reaching 2.1% in July 2022 compared to July 2021. 

When London is taken out of the UK national figures, the picture for private rental prices is more stable. Throughout 2016 and 2018 there was very little change, with prices fluctuating between 1.4% and 2.3% higher compared to the previous 12 months. However, since November 2021, the percentage change in private rent increased rapidly from 2.6% to 3.7% in July 2022.   

Private rental increases in different parts of the UK

Between 2016 and 2022, all four UK nations witnessed a relatively similar pattern in the average cost of private rent, with fluctuating prices up until 2021, and a sustained increase leading up to mid 2022. 

A breakdown of changes to private rental prices for different countries of the UK between 2016 and 2022

Throughout most of 2016 and 2017, the percentage change in private rental prices in England was higher than in the other three nations, despite falling from 2.8% in February 2016 to 1.6% in September 2017. After this point, Northern Ireland has sustained its position as the country with the highest rate of change in average price of rent across the UK. 

Since January 2020, there has been rapid growth in the relative cost of private rent in Northern Ireland, despite mild fluctuations between 2017 and 2019. Between March 2022 and July 2022, this plateaued to a peak of 6.8%, compared to the previous year. 

Changes to private rental charges in England have been more gradual. After reaching a low of 0.9% in July 2018, it steadily rose and fell across the resulting three years. Since January 2022, it started to increase quickly from 2.0% to 3.2% as of July 2022—the highest on record in recent years. 

The private rental landscape for both Scotland and Wales is similar to that of England, but with some negative changes to note. For Scotland, the rate of change for private rental charges was 0.8% in January 2016, before dropping -0.2% in October later that year. 

Between August 2016 and July 2017, the percentage change fluctuated above and below 0%, after which it gradually increased up until January 2021. Prices during this time alternated between 0.6% and 1.0%, compared to the previous year. From January 2021, there was a sustained increase, rising to a peak of 3.7% in July 2022. 

For Wales, the initial picture for private rental costs is relatively similar to Scotland. The largest increases were felt between June 2016 and December 2017, when the average change in private rental charges went from -0.1% to 1.7% in December 2017. Since then, it has remained fairly stable, however, rose again more recently, to 2.1% as of July 2022.

A breakdown of the affordability of different regions of the UK in 2022

In 2022, London remains the most expensive place to rent in the UK, with average monthly costs of more than £1,800. This is almost three times as expensive as the North East (the UK’s cheapest rent location), which has also seen the lowest year-on-year (YoY) growth for July 2022, at 7.6%. 

Our cost of living report found that rent costs in Kensington and Chelsea averaged at almost £2,970 a month—the highest across anywhere in the UK. 

By contrast, London experienced the highest YoY growth, with almost 18% in July 2022. This is after being the only region of the UK with negative YoY growth for July 2021 (-4.4%), with the East Midlands having the most growth for that year, at 6.3%. 

The capital also holds the crown for the least affordable part of the country to live in, with an average of 47.5% of people’s income going on rent. The most affordable region is the North East, at just above 23% of wages going towards rent, followed by Yorkshire and the Humber and the North West (both in excess of 26%). 

Across the other home nations, Wales is marginally more expensive to rent (£750 pcm) than Scotland (£671) or Northern Ireland (£659). Welsh rental properties have increased the most across the past 12 months, by more than 12%, and will cost renters more than 27% of their income. By comparison, prices in Scotland and Northern Ireland have both risen by around 10% in the last year in the average price of rent, accounting for approximately a quarter of people’s wages.

The UK has some of the best cities to move to for work. However this is only beneficial if the associated wages of working there allow you to live the lifestyle you desire. In 2022, Bristol is the most expensive city to rent a property in the UK. At just above £1,200 pcm, renters pay almost £200 a month more than second-placed Edinburgh, and twice as much as the UK’s most affordable city, Belfast. This also makes Bristol the least affordable, costing on average more than 42% of people’s wages in order to live here. 

Liverpool and Sheffield are also relatively cheap by comparison, at around £700 pcm, and will only set you back around a quarter of your annual salary.  

Glasgow has seen the largest growth in rental costs within the past 12 months, at 14.4%. By contrast, Southampton has seen the smallest growth, followed by Belfast, at 9.7% and 9.9%, respectively.

If you are considering relocating for a better standard of living, check out our UK relocation report which judges different places in the UK based on average house prices, salary, as well as environmental factors that may influence your overall quality of life by moving there.

Average UK council tax 2022

In 2021 and 2022, the average UK council tax for a Band D property was £1,898. This is expected to rise by £67 for 2022 and 2023, to £1,966 a year. 

For other parts of the UK, the corresponding figures for a typical Band D property in 2021-22 are:

• £1,622 in London (rising to £1,684 in 2022-23) 

• £1,893 in metropolitan areas (rising to £1,960 in 2022-23)

• £1,970 in unitary areas (rising to £2,034 in 2022-23)

• £1,970 in shire areas (rising to £2,041 in 2022-23).

These proposed increases mean that the UK’s average council tax costs will be £1,493 in 2022 and 2023. Once the £150 rebate is provided as part of the Government’s cost

It is worth noting that this excluded properties that were empty as of 1st April 2022, plus properties that were classed as second homes for council tax purposes.

of living support payments, the estimated average should be around £1,375 per dwelling.

A breakdown of most and least expensive UK council tax 2021-22

The three cheapest areas for UK council tax in 2021 and 2022 can all be found in London. Council tax for residents of Westminster starts from as little as £553 a year, followed by Wandsworth at £564, and the City of London at £700. 

The most affordable location in Scotland is Na h-Eileanan Siar, in fourth position overall in the UK, with council tax rates from £796 a year. Pembrokeshire is Wales’ only representative in our top 10, with council tax almost £300 a year more expensive than Westminster—the cheapest in our study. 

Wales might only have one location in the cheapest areas for council tax, however, it can boast the four most expensive. As of 2021-22, the most expensive UK council tax available was in Blaenau Gwent, at £4,849 a year (almost six times more than the cheapest available in Wales). 

The most expensive available in England can be found in Nottingham Unitary Authority (UA)—fifth in our study—at £4,452 a year, whereas Scotland’s costliest council tax is located in Lewes, at £4,378 a year. 

Although, it’s not just about the annual cost of council tax, it’s what you get for your money. According to our study, the regions with the best return on their council tax are Wandsworth, Wigan, and Windsor & Maidenhead, when taking into account what services are offered by the council, such as emergency vehicle response times, education, and household recycling facilities. 

A breakdown of the proposed council tax costs for different parts of the UK 2022-23

A breakdown of the largest and smallest percentage change to UK council tax 2022-23

With the cost of council tax expected to rise for most parts of the UK into 2023, this will mean a tighter squeeze on the cost of housing. 

Although, not all parts of the UK will be impacted equally. Nine out of the top 10 areas expected to increase are located in England, with Sandwell in the West Midlands seeing the biggest anticipated rise at more than 5%. 

The Welsh area of Pembrokeshire is second, at just under 5% growth in Band D council tax for 2022-23. The remaining areas are all English, starting off with West Oxfordshire in third, at just under 4.9%, down to Runnymede in 10th where residents can expect to pay more than 4.6% extra in 2022-23 compared to the previous year. 

The Shetland Islands in Scotland is the only part of the UK not expected to see a rise in council tax for 2023. Those on our list for the smallest increases into 2023, are all predicted to rise by less than 2% on 2021-22 costs. 

Second-placed Bridgend sees Wales’ smallest rise in council tax, with residents projected to pay 0.72% more in 2022-23 than the previous year. Southampton UA completes the top three, with council tax fees 0.77% more expensive next year compared to 2021-22. 

Eighth, ninth, and 10th spot in our study are all Welsh locations, with Rhondda Cynon Taf taking 10th position, expecting a 1.78% increase in Band D council tax for 2022-23. 

Average salary vs cost of living in the UK 2022

According to the Joseph Rowntree Foundation, a single person living in the UK in 2022 needs to earn at least £25,500 to reach a minimum, acceptable standard of living. For a couple with two children, this increases to an average combined income of around £43,000. 

However, these figures will vary depending on which part of the country you live in, your age, and how many dependents (i.e. children) you have. 

Using the Minimum Income Calculator tool, we calculated the least amount of money you need to earn each year, in order to achieve a decent standard of living. Below are a series of tables depicting different living arrangements and scenarios, plus the minimum amount of income needed in order to sustain a reasonable standard of living in that area. 

The average cost of living in the UK by household type - one-person household

Source: Minimum Income Calculator UK

As a single person living in the UK outside of London and Scotland, you will need to earn around £24,800 a year to have a comfortable standard of living. This will give you a weekly income of just under £392 to spend on essential items, such as food, utility bills, and accommodation. These figures are similar for Scotland. 

However, if you move into London, these figures change considerably. Should you choose to live in Inner London, you’ll need to earn in excess of £32,000 a year to have a decent standard of living, as your expenses will set you back approximately £530 a week. Outer London is slightly more affordable, requiring earnings of £26,330, and more than £450 a week in living costs. 

The average cost of living in the UK by household type - family households

Source: Minimum Income Calculator UK

Source: Minimum Income Calculator UK

For a single-parent household, the required salary for a decent standard of living can vary considerably, depending where you live in the country, how many children you have, and how old they are. 

For a single parent, under the age of 65, living in inner London with a child under the age of one, their annual earnings would need to exceed £63,400 in order to live comfortably, compared to just above £61,300 in outer London. By comparison, the same family set up in Scotland would require two-thirds of this amount (around £44,200), and more than £47,500 for the rest of the UK. 

Being a single parent with a young child is proving to be one of the more expensive scenarios facing parents in the UK in 2022. By contrast, if you are a single parent with two children (both of school age), your required earnings drops to £35,300 for inner London, and just under £40,000 for outer London. This will give you about £776 and £833 a week, respectively, in order to live comfortably. 

By comparison, the earnings required in Scotland are greater than in London (at approximately £42,200 a year) and just under £43 for the rest of the UK. Both of these would give you just under £750 a week to live on, and comfortably support yourself and two children. 

While it is possible to cut the cost of living alone, how much you are bringing in each month is a major deciding factor as to how you cope during the UK cost of living crisis in 2022. These pressures certainly become slightly easier when you introduce a second person (and income) into the equation.

Source: Minimum Income Calculator UK

Source: Minimum Income Calculator UK

Living as a UK couple with children will take off some of the pressure, as it is likely you will have two incomes. However, for both inner and outer London, a family’s cost of living is considerably higher than other parts of the UK, with required household earnings at around £67,000 a year. For couples with a child under the age of one, this would provide them with just around £1,000 a week on which to live. 

For those in Scotland, the required annual salary drops by almost a third, to just above £49,000, and about £53,000 for the rest of the UK. This would result in couples having around £866 a week to support themselves and their young child. 

For a couple with two children of school age, the joint earnings required for a good standard of living is reduced by almost a third for inner London, at a little more than £46,000. For outer London, this figure is almost £53,000. This would supply families with almost £917 and £970 a week, respectively, on which to raise their family and comfortably provide for them. 

For Scotland and the rest of the UK, the annual combined earnings required for the same scenario drops to around £48,000, resulting in just under £860 a week for living expenses in these two areas. 

The cost of living for a family of three in the UK is notably higher than the cost for a family of four living in London. This could be up almost £100 a week more, even by having one less child. 

For other parts of the UK, this difference is much less, down to around £5 a week. However, the impact is felt more on the earnings required to sustain this way of living. In London, you need to be earning almost £20,000 a year more if you are a couple with one child, compared to a couple with two children. 

For the rest of the UK, the corresponding figure is about £7,000 a year more. 

Average cost of living in the UK by household type - retired households

Source: Minimum Income Calculator UK

Source: Minimum Income Calculator UK

For retired households in the UK, the loss of annual earnings from employment is replaced with a pension in order to live, whether that be a state or private pension scheme. Most elderly residents will not have the pressure of providing for their dependents by the time they reach retirement age, and therefore the required amount of money needed for a decent standard of living drops significantly, compared to those of working age. 

A single person aged 65+, and living on their own in inner London, will need a pension of at least £21,700 a year. This would give them just under £400 a week on which to live off. For other parts of the country, the corresponding figure drops by around £5,000, to just under £16,300 for outer London, and almost £17,000 for Scotland and the rest of the UK. Overall, this would provide single pensioners with somewhere between £326 and £363 a week on which to live off. 

Couples aged 65+ and living together with no dependents in inner London, will need to have a combined pension of almost £33,000 (about £575 a week) to sustain a decent standard of living. This drops to around £27,300 for outer London (approximately £500 a week to cover living expenses). 

For the rest of the UK and Scotland, the combined pension needed is a little more than £26,000 a year, providing them with approximately £470 a week to buy food, pay bills, and live well. 

Average cost of living in the UK by household type - weekly expenditure

Source: Joseph Rowntree Foundation

The Minimum Income Standard (MIS) is based on specific budgets, calculated for a range of households and individuals. The table above sets out the budgets for four household types, broken down into various categories of spending. 

Since 2021, the MIS has risen considerably for all four groups, increasing by more than a quarter (27%) for single, working adults, and in excess of 18% for pensioner couples. Adult couples with two children have seen the smallest rise, at more than 17%. Lone parents with two children have seen their cost of living rise by almost a fifth (19%) since last year.  

The 2022 MIS for a single, working adult in the UK stands at just under £392. If this person were to have two children, the MIS would more than double, to £827 a week. 

A pensioner couple in the UK requires about £470 per week in order to meet their MIS, whereas a couple with two young children need around twice this much in order to meet their needs, at £936 a week. 

In terms of categories, childcare, unsurprisingly, accounts for the majority of costs for those with children, at 29% for single parents and almost 26% for a couple with two children. For single, working adults, a quarter of their weekly income will go towards rent, with food and socialising each accounting for 17%. 

When comparing home insurance costs across all groups, this happens to be the lowest contributor, at less than £2 a month. 

Pensioner couples spend less per week on rent than any other group, which is almost a fifth (19%) of their weekly expenditure. The majority of their costs are attributed to food (20%). 

Student cost of living in the UK 2022

According to the Student Money Survey 2022, the average UK living costs for students rose 14% within the last year, with the average student now spending £924 a month. In London, this figure is £1,089 per month. 

These latest cost of living statistics indicate that 2022 Maintenance Loans now cover just over half of the average UK student’s cost of living. Despite this, students from England will only see a 2.3% rise in the maximum Maintenance Loan in 2022/23, despite inflation reaching 9.9% (and expected to rise further). 

As it stands, the average student’s Maintenance Loan falls short of covering their living costs by £439 a month. 

The Student Money Survey 2022 found that two-thirds of students felt the Maintenance Loan was not enough to live on.

The impact of rising student cost of living in the UK 2022 

When asked by the Student Money Survey 2022 about how the rising cost of living was impacting them, the response by students was profound:

• 31% felt that their grades had suffered

• 35% claimed their relationships had been affected 

• 38% reported issues with sleeping 

• 47% admitted their diet had been impacted 

• 59% said their mental health was adversely affected 

• 64% believed their social life had suffered. 

In the last year, one in 10 students had to use a food bank, with 82% worried about making ends meet. Four out of every five students have thought about dropping out of university at some point throughout the last academic year—52% of these were due to financial worries. 

How much does the average UK student spend each month? 

In 2020-21, the average UK student’s monthly outgoings came to £810, rising to £924 in 2021-22. 

A breakdown of average monthly spending by UK students

Rent is by far the largest living expense for UK students in 2022, accounting for almost half (45%) of their monthly outgoings. Despite the rise in cost of living, rent costs have remained pretty stable during the last two years, fluctuating between £418 and £421 a month. 

The next biggest expense for UK students is grocery shopping, accounting for 13%, followed by energy bills, at 7%. Going out and transport are around the same a month, at an average of £59 and £54 respectively, both accounting for about 6% of total monthly outgoings.

Check out our student budgeting guide for helpful hints and tips on how to cut costs living as a student in the UK.

Average UK cost of living statistics for students 2022

A breakdown of the average UK living costs for students across different regions of the UK

The cheapest region for student living costs belongs to the West Midlands, at £822 per month, followed by the East Midlands at £832. By comparison, students studying in

This includes UK students who live on campus as well as those who live away from home with parents.

London—the most expensive region—can expect their monthly living expenses to be 25% higher compared to either of these regions. 

In the 2021 Student Money Survey, 10 out of the 12 UK regions had an average student living cost of £800 a month or less. In 2022, there were none. The South West and London were the most expensive areas to live as a student in the UK in 2021, which is still true in 2022. However, both areas have seen a significant increase throughout the past 12 months (10% and 18%, respectively). 

Average personal debt UK 2022

A breakdown of key UK average personal debt statistics for 2022

At the end of June 2022, people in the UK collectively owed more than £1.8 trillion. This is £62.5 billion more than June 2021—an extra £1,181 per UK adult across the year. 

According to cost of living statistics from The Money Charity, the average total debt per UK household in June 2022 was £64,970, with unsecured debt of around £3,800 per UK adult. In terms of net lending, this grew by £224.6 million a day in June 2022, with borrowers paying £131 million a day in interest for this month alone. 

As of Q2 2022, the average UK household debt, as a percentage of people’s disposable income, stood at almost 134%. This meant people were borrowing more than double what they could afford to pay back instantly. The Citizens Advice Bureau (CAB) reported dealing with more than 2,000 issues a day between January and May 2022 across England and Wales. 

According to our debt index, this is not felt evenly across the country either. Those in Southampton, for example, have on average almost three times as much personal debt than those in Nottingham (a rise of 740% between 2020-21). On the other hand, those in Brighton, who have actually seen a 61% decrease in their personal debt across the same period. 

Credit and credit cards debt 

Cutting credit card borrowing costs is one of the ways that can help you become debt free faster. However, during the UK cost of living crisis, more and more people are turning to credit cards as a way of sourcing additional money. 

Credit cards statistics for 2022 indicate that at the end of June, outstanding consumer credit lending was almost £204 billion. This is an increase of £1.3 billion from May 2022, and more than £6.3 billion from June 2021. 

In terms of credit card debt, this stood at £62 billion—an increase of almost 10% in the first six months of the year. This works out at £2,229 per UK household, and £1,171 per UK adult. 

UK Finance figures show that over half (52.1%) of credit card balances were bearing interest in May 2022. 

By making only the legal minimum repayments (interest plus 1% of the outstanding balance) each month, a credit card on an average interest rate would take 25 years and 7 months to repay.

The ONS also states that 18% of people living in deprived areas of the UK reported using some form of credit in 2022, whether that be credit cards, unsecured loans, secured loans, or bank overdrafts. Conversely, the percentage of people using credit in the least deprived parts of the country fell to 8%, while the proportion for England as a whole was 13%.  

Moving your credit card debt to a card charging 0% interest on balance transfers can see your monthly repayment costs drop. By comparing credit card offers available on the market, this will ensure you find one that is right for you, and your circumstances. 

Bankruptcy and insolvency 

In total, there were more than 29,700 insolvencies in England and Wales between April and June 2022—an increase of more than 5% from the same period in 2021. 

This means that 327 people a day across England and Wales were declared either insolvent or bankrupt in Q2 2022—almost the equivalent to one person every four and a half minutes. Comparative figures highlighted 21 insolvencies a day in Scotland, and 4.5 a day in Northern Ireland. 

In the 12 months to June 2022, more than 115,000 individuals became insolvent across England and Wales—roughly 0.25% of the population, or one in every 408 UK adults. By comparison, in Northern Ireland, there were 134 in June 2022 alone, with almost 1,900 in Scotland between January and March 2022.  

County court judgments for debt 

Between January and March 2022, almost 2,500 daily consumer county court judgements (CCJs) were issued in England and Wales (10% less than last year). According to the Registry Trust Ltd, the median value was around £950 per individual case. 

In contrast, there were 10 a day in Northern Ireland, with a median value of £1,116, and 43 a day in Scotland, at an average of £1,363.  

Repossessions and mortgage arrears 

According to the Financial Conduct Authority (FCA), at the end of Q1 2022, there were almost 153,000 mortgage loan accounts with arrears of more than 1.5% of the current loan balance. There were also 75,670 homeowner mortgages with arrears of 2.5% or more.  

UK Finance estimated that 580 homeowner properties were taken into possession in the first quarter of 2022. This means that across the UK, there were 6.4 properties repossessed every day between January and March 2022—almost one every four hours. In the same period, the number of UK mortgages with arrears of more than 2.5% of the remaining balance fell by almost 23 a day. 

Between January and March 2022, 32 daily mortgage possession claims, and almost 26 mortgage possession orders, were made across England and Wales. In addition to this, an average of 211 landlord possession claims and 144 landlord possession orders were also made each day across the same time period. 

Mortgage debt at the end of June 2022 stood at more than £1.6 trillion—£56 billion more than last year. With almost 11 million households in the UK, this means the estimated average outstanding debt is just under £146,000 per household. 

Unemployment and redundancies 

The number of unemployed people in the UK fell by 986 a day in the 12 months to May 2022.

Between March and May 2022, 338,000 of those aged between 18-24 were out of work—just 9% of younger Brits. This was 91,000 fewer than 2021, and 28,000 fewer than February 2022. 80,000 of these had been unemployed for more than six months, and 59,000 were without work for more than a year. 

As of May 2022, there were almost 1.3 million unemployed people in the UK, which equates to 3.8% of the workforce. This is a 15,000 reduction compared to Q1 2022, and 360,000 less than May 2021. 

Unemployment was highest in the North East (5.1%) and London (4.6%) and lowest in the East Midlands (2.5%). Across the country, 353,000 people were without work for more than 12 months—110,000 less than the same time last year. 

For the older members of the workforce, 287,000 were unemployed between March and May 2022—this is 5,000 more than Q1 2022, but 113,000 less than May 2021. Nearly 40% of those out of work aged 50 and above had been unemployed for more than 12 months, with 59,000 out of work for more than two years. 

Conversely, more than 1.4 million people aged 65+ were in work between March and May 2022—95,000 more than the previous quarter, and 115,000 more than last year. 

It’s important to add, however, that unemployment figures only take account of the number of people not in work who are actively looking for it. People who are unable to work—for example through long-term sickness—are instead classed as “economically inactive”.

The number of people classed as economically inactive has been rising fast, with more than nine million people falling into this category in the three months to July this year according to the ONS - the highest since early 2017.

In terms of redundancies, 51,000 people reported they had been made redundant in Q2 2022, averaging 554 employees a day. This was 24,000 less than Q1 2022, but 52,000 fewer than the previous year.  

Rising cost of living and inflation in the UK 2022

Falling petrol prices have largely been attributed to pushing the UK’s inflation rate back below 10% in August 2022, as upward pressure from the rising cost of living begins to take hold. 

Petrol prices dropped by more than 14p per litre in August 2022, in response to the falling global oil price. As a result, the annual inflation rate for motor fuels dropped from 43.7% to 32.1% in one month alone. 

Food price inflation rose for the 13th consecutive month, reaching a 14-year high of 13.1% in August 2022, with notable increases in the cost of milk, cheese, and eggs. Up until this point, the cost of food and non-alcoholic beverages had already been rising throughout 2022. The 1.5% increase between July and August was the largest between any two months since 1995. 

Clothing and footwear prices rose by 1.1% between July and August 2022, as summer sales ended, compared with only a 0.2% increase last year. Overall, the annual inflation rate for clothing and footwear stood at 7.6% in August 2022. 

Separate ONS figures for producer prices show some signs of easing. Fuel and raw material costs rose by more than 20% in the year up to August 2022, down from 22.6% last year to July. In addition, the cost of goods leaving factories was up more than 16% in the same year, compared with more than 17% in the year leading up to July 2022. 

The CPI dipped to 9.9% in August 2022, with cheaper motoring costs offsetting the impact of rising food prices. Despite this, the BoE increased interest rates further on 3 November 2022, to 3%, and then again on the 2 February 2023, the rate rising to 4%. Analysts now believe that the BoE base rate could reach 4.75% by the end of 2023. 

The current rate of UK inflation remains more than three times higher than the 3.2% recorded in August 2021 (some 12 months earlier), and almost five times higher than the official 2% target. 

Core inflation—which removes fuel, food, alcohol, and tobacco from the figures, and is monitored by the Monetary Policy Committee (MPC)—increased from 6.2% to 6.3% in August 2022. 

Understandably, people are concerned about these cost of living statistics, given that many UK households will face rising energy bills in the coming months—with further increases in the annual inflation rate expected in the near future. 

The energy cap of £2,500 for the average annual bill will certainly have an impact, with the peak inflation rate expected to be lower than previously thought, at 11%.

How is inflation measured? 

Inflation, as measured by the ONS, is based on the cost of a representative basket of goods and services for the average UK consumer. It’s produced by collecting the price of more than 700 goods and services each month, across the country and online. In total, approximately 180,000 individual prices are collected as part of this measure. 

Inflation rates will vary between individuals and across different locations within the UK, depending on their spending habits, and the price they pay for various goods and services. 

In 2023, the ONS is preparing to increase the number of prices it collects, from 180,000 to many millions each month to allow for a more detailed insight into the changing landscape of UK inflation.

ONS inflation calculator

If you would like to find out how inflation is impacting you, the ONS inflation calculator will help show how the rising cost of living in the UK has affected your household in the past year.

UK Consumer Price Index (CPI) inflation rates 

A breakdown of how UK consumer price inflation rates have changed between 2021-22

The Consumer Price Index (CPI) is an indicator that measures the change over time in the general cost of goods and services. It’s not a direct measure for the cost of living, as it doesn’t measure all price changes in the economy, and only reflects the end purchasing price for the consumer. 

However, despite these limitations, it does indicate the rate of inflation, and a general overview of how much more or less expensive things are in a country over a given time period. 

In August 2022, the UK CPI stood at 123.1, compared to 100 in 2015. Throughout 2021 and 2022, the CPI has gradually risen month-by-month, from 112.1 in August 2021 to its peak in August 2022. This represented the highest annual rate of UK inflation since 1982, in terms of the affordability of goods and services for UK households. 

The 12-monthly rate has also increased over the past year, from 3.2% in August 2021 to a peak of 10.1% in July 2022. 

Over the course of 2021 and 2022, the monthly CPI rate fluctuated between 0.5% and 1.1%, with two exceptions. In January 2022, it dropped to -0.1% (the only negative value over the previous 12 months), and rose to 2.5% in April 2022 (the highest point across the year). 

By comparison, the CPIH is a more comprehensive measure of price changes over time, as it includes Owner Occupiers’ Housing Costs (OOH)—i.e. any costs associated with running a home. Over the last 12 months, the CPIH has risen from 112.1 in August 2021 to 121.8 in August 2022, with a 12 monthly rate increasing from 2.9% in September 2021 to 8.8% in July 2022. 

The OOH has increased slightly, but not as much by comparison to CPI or CPIH, from 110 in August 2021 to 113.8 just 12 months later. In this same time period, the 12 monthly rate almost doubled, from 1.7% to 3.5%. 

A breakdown of UK consumer price inflation rates between 2012 and 2022

The recent spike in CPI and CPIH is not indicative of the long-term trends for the UK. Between August 2012 and July 2021, both experienced fluctuations between 0% and 2.3%. CPI values dropped slightly into the negative for September and October 2015, but were restored once again thereafter. During the same period, CPIH dropped to its lowest at 0.2%. 

Up until March 2022, the OOH rate has steadily alternated between 0.1% and 2.7%, after which it steadily increased to its peak of 3.5% in August 2022. 

A breakdown of UK inflation rates for transport and motor fuels between 2012 and 2022

Since August 2012, the 12-monthly motor fuel inflation rate has experienced a large degree of volatility, dipping to -16.6% and -16.7% in February 2015 and May 2020 respectively. 

September 2013 to August 2016 saw a period of almost three years with fluctuating negative motor fuel inflation rates, compared to the same time the previous year.

However, since March 2021, there has been a relatively fast upwards trend, growing from 3.5% to a peak of 43.7% in July 2022. As of August 2022, the rate for motor fuel stood at 32.1%. 

By contrast, the inflation rate for transport in the UK has kept broadly in line with the general rate for CPIH, ranging from -2.8% in January 2015, to 6.6% in February 2017. Since June 2021, the rate has been gradually increasing from 7.3%, to a height of 15.2% some 12 months later. As of August 2022, the rate dropped slightly, to 12.4%. 

A breakdown of the UK inflation rate for food and non-alcoholic beverages between 2012 and 2022

The food and non-alcoholic inflation rate for the UK fluctuated over the last decade. Between August 2012 and April 2014, this rate remained positive, alternating between 0.6% and 4.6%.  

However, May 2014 to January 2017 saw a period of negative 12-monthly change, ranging from -0.5% in January 2017, to -3.3% in February 2015. Positive growth resumed up until October 2020, after which a period of nine months saw a negative change for the first time since the start of 2017. From August 2021, the rate skyrocketed, reaching a peak of 13.1% in August 2022. 

A breakdown of UK inflation rate for goods, services, and CPIH (excluding energy, food, alcohol, and tobacco) between 2012 and 2022

The inflation rate for UK services has remained relatively stable over the past decade. Between August 2012 and October 2021, the rate generally remained somewhere between 1.9% and 2.9%, despite dropping to a low of 1% in August 2020. From November 2021, it rose from an initial peak of 3% in November 2021, to a second peak of 5.1% in August 2022. 

For UK goods, the inflation rate has been slightly more turbulent. Since August 2012, this rate has largely remained positive, with a sustained period between November 2014 and October 2016 where numbers dropped into negative values—the lowest point being -2.4% in September 2015. 

Since March 2021, the rate of inflation on UK goods has remained positive, growing from 0.21% in the same month, to a height of 13.6% in July 2022. As of August 2022, the 12-monthly rate stood at 13%.

A breakdown of the contributions from UK household to the annual CPIH inflation rate between 2020 and 2022

The CPIH rate increased dramatically since August 2020, from 0.5% to a peak of 8.8% in July 2022. In August 2022, it dropped slightly to 8.6%. 

For the month of August 2022, housing and household services contributed to a third of the CPIH 12-monthly inflation rate—more than any other sector of the economy. This was followed by transport (15%), then food and non-alcoholic beverages (14%). Alcohol and tobacco contributed the least (2%), followed by clothing and footwear (5%). 

Since August 2020, the largest contributors to the UK’s CPIH 12-monthly inflation rate have either been housing and household services or transport. These two have also seen the biggest increase within the past two years, going from 0.2% to 2.9%, and -0.1% to 1.36%, respectively. 

The vast majority of contributions across all categories have largely been positive, with some notable periods of negative change. 

Between August 2020 and April 2021, clothing and footwear dropped into negative values, with a low of -0.35% in the 12-monthly inflation rate. Since then, it has remained in positive values, reaching a peak of 0.57% in March 2022. 

Similarly, between November 2020 and July 2021, food and non-alcoholic beverages dipped into the negatives, reaching a low of -0.11% in December 2020 and March 2021. Since July 2021, this has been restored to positive values, reaching a height of 1.2% in August 2022. 

Contributions to change in annual CPIH inflation rate between July and August 2022

Source: ONS

Between July and August 2022, the largest contribution made to the annual CPIH inflation rate was from food and non-alcoholic beverages, at 0.05 percentage points. This is followed by clothing and footwear and miscellaneous goods and services (both 0.04 percentage points). 

Negative contributions were experienced from both transport, and recreation and culture, at -0.29 and -0.04 percentage points, respectively. 

A breakdown of the contribution of housing components to the annual UK CPIH inflation rate between 2015 and 2022

Since October 2021, the largest contributor to the annual CPIH inflation rate has been electricity, gas, and other fuels. In August 2022, this was almost 64% of the CPIH rate for that month, compared to just 5% in March 2017. 

Between January 2015 and January 2017, and April 2020 and March 2021, there were sustained periods of negative contributions for electricity, gas, and other fuels, reaching a low of -0.23% in both October and November 2020. 

The next biggest contributor in August 2022 to CPIH inflation rates was owner occupiers’ housing costs at 0.61%, representing more than 21% of the overall rate. This was a significant contributor to the CPIH rate within the previous seven years, contributing around 50% between January 2015 and June 2016, and more than 50% for the resulting eight months. 

Impact of rising cost of living on UK households 

According to an ONS survey from August 2022, 89% of adults in Great Britain reported a noticeable increase in their cost of living within the last 12 months. 

Just over nine in 10 (91%) also noted that there had been an increase across the previous month (since July 2022). Back in November 2021, 62% of respondents gave the same response—an increase of almost 30% in a ten-month time period. 

For those who stated their cost of living had risen between July and August 2022, the most common reasons given were:

• Increase price of food shopping (96%)

• Rising energy bills (79%)

• Increase cost of fuel (71%).

 Of those surveyed, 81% claimed they were very, or somewhat, worried about the rising cost of living within the previous two weeks, compared to 74% who were surveyed between 27th April and 8th May 2022. 

Just under a fifth (19%) of adults admitted to borrowing more money, or taking out additional credit in the month of August 2022 compared to a year ago. Less than half (47%) feared they will not be able to save any money across the coming 12 months. 

45% of those who pay energy bills found it very or somewhat difficult to afford them in August 2022. 

Almost a quarter (24%) travelled abroad in the previous eight weeks, indicating that people still had a reasonable amount of disposable income in 2022 in order to afford a foreign holiday.

Source: ONS

According to an ONS study, just over half (57%) have said they’ll be cutting back on their cost of living by reducing any non-essential spending, whilst approximately 24 million adults (51%) will be aiming to use less energy in their homes. 

More than two people in five (42%) expect to cut back on non-essential travel in their private vehicles, while almost the same percentage have targeted their shopping habits as a way of cutting costs, either by shopping around more or spending less on food and essential purchases (36% and 35%, respectively). 

Just under a quarter (23%) have said they’ll use their savings account as a way to fund the rising cost of living in the UK. 13% have opted for additional sources of credit, such as credit cards, loans, and/or overdrafts, as a way of funding these additional costs. 

More than one in 10 (11%, or five million UK adults) have claimed they’ll not be doing anything different in the face of a cost of living crisis. 

Rising UK inflation and interest rates 

The Bank of England changes the UK base rate in an attempt to keep inflation as close to 2% as possible. 

By increasing rates, it makes borrowing more expensive and saving more worthwhile - this theoretically means people spend less money and shops keep prices rises down as a result. It also affects businesses, meaning pay rises are also pushed lower as businesses spend more of their money paying back any loans they have. 

Finally, higher interest rates tend to support the pound, making imports cheaper and pushing down inflation again.

According to the BoE, real household incomes are expected to fall throughout 2022, by as much as 1.5%. This trend is predicted to continue into 2023 by 2.25%, before rising by 0.75% in 2024. 

The rate of inflation is a measure of how quickly prices have increased within the country. In June 2022, prices rose by 9.4% compared to the previous year—more than 7% higher than the 2% BoE target for inflation. 

In an attempt to curb the rate of inflation in the UK, the BoE increased interest rates in August 2022 to 1.75% (having risen from 0.1% in December 2021). On 22 September 2022, interest rates increased by a further 0.5% to 2.25%. This took borrowing costs to their highest level since 2008. 

The question now is how high will the rates go? Financial markets predict that UK interest rates could rise to as much as 5%—higher than the USA and eurozone countries. On 2 February 2023, the BoE increased their base rate even further to 4%, the highest figure in 14 years. 

The documented rise in energy prices is expected to push inflation to around 13% in the near future. Although, increasing interest rates, and introducing an energy cap, are expected to curb inflation at around 11%. 

The rising cost of living help

A breakdown of the ways in which the Government are supporting people during the UK cost of living crisis

The UK Government has pledged to provide £37 billion worth of support for UK households that need it the most. This will see millions of the most financially vulnerable people in society receive around £1,200 in support payments, to help with the rising cost of living. 

 This Government support package will include the following:

1. Help with energy bills

• The UK Government will provide a £15 billion energy bill rebate package, worth up to £550 for each of the 28 million UK households. 

• All domestic energy customers in Great Britain will receive a £400 grant to help subsidise their energy bills, which doesn’t need to be repaid. 

• Households in council tax bands A-D in England will also receive a £150 Council Tax Rebate, to help with the rising cost of domestic bills. 

2. Cost of Living Payment for those receiving government benefits 

• More than eight million households on means-tested benefits will be eligible for a cost of living payment (£650). 

• This will include all households that receive:

• Universal Credit

• Income-based Jobseekers Allowance

• Income-related Employment and Support Allowance 

• Income Support 

• Working Tax Credit 

• Child Tax Credit 

• Pension Credit

• The Department for Work and Pensions (DWP) will spread the payments out across two lump sums (one in July 2022, and the second in the Autumn of 2022). 

• For those receiving Tax Credits, payments from HMRC will arrive shortly after each lump sum payment, to ensure there are no duplicate payments. These payments will be made directly to each household in the UK.

3. Pensioner Cost of Living Payment 

• All pensioner households across the UK will receive an extra £300 to help cover the cost of rising energy bills in winter. 

• Pensioners are disproportionately affected by increased energy costs, as many low-income pensioners don’t claim the means-tested benefits they are entitled to. 

• The Pensioner Cost of Living Payment (£300) will act as a top up to those who receive the Winter Fuel Payment, and will directly benefit eight million pensioner households. 

• For the majority of pensioner households, this will be paid to their bank account by direct debit, is not taxable, and will not affect their eligibility for other benefits they may be entitled to. 

 4. Disability Cost of Living Payment 

• UK residents with disabilities will receive an extra £150 to help with the rising cost of living. 

• This will include those who currently receive:

• Disability Living Allowance 

• Personal Independence Payment 

• Attendance Allowance 

• Scottish Disability Benefits 

• Armed Forces Independence Payment 

• Constant Attendance Allowance 

• War and Pension Mobility Supplement 

• The Disability Cost of Living Payment will be received as a one-off payment in September 2022, and will benefit up to six million people.

• In addition, it will be exempt from tax, will not count towards the benefit cap, and will not impact any existing benefit payments.

 5. Household Support Fund 

• This will provide £1 billion worth of support for those households not eligible for other kinds of help, or those who require further support. 

• It will run to the end of this financial year, and will target those most in need to cover the cost of essential goods, such as food, clothing, and utility bills. 

• In England, this will be distributed to Local Authorities, who will direct the help to the most vulnerable members of their communities. 

• In May 2022, the UK Government announced a further £500 million would be pumped into the Household Support Fund Scheme, which will run until March 2023. 

• This is in addition to the £1 billion worth of support that has been made available since October 2021. 

 6. Increase to the National Insurance Contribution (NIC) threshold 

• From July 2022, the NI starting threshold rose to £12,570, meaning those in the UK on lower incomes will get to keep more of what they earn before paying tax.

• The cut to NI is worth an estimated £6 billion, and will benefit 30 million working people, with the average employee saving more than £330 a year. This change now means the UK has some of the most generous tax thresholds in the world. 

 7. Reducing the NIC for lower-earning, self-employed people 

• From April 2022, changes to the NI contributions for self-employed individuals mean they won’t pay Class 2 NICs on profits between the Small Profits Threshold and Lower Profits Limit.

• This means those who are self-employed and on a lower income will keep more of the money they earn, whilst still building up their NI credits. 

• This cut will directly benefit around 500,000 self-employed people in the UK, saving them up to £165 per year.

 8. Reduction to the Universal Credit (UC) taper rate 

• By reducing the UC taper rate from 63% to 55%, and increasing work allowances by £500 per year from late 2021, this means a significant tax cut for the lowest paid in society. 

• In total, this is worth around £1.9 billion in savings for 2022-23, and also means 1.7 million households will get to keep around an extra £1,000 across the year. 

 Whilst these cost of living support payments are welcomed, and designed to support those most affected by the rising cost of living, it does not help solve the entrenched problems with the UK social security system. 

Even with the cost of living support payments, a couple with two children, who are both claiming out-of-work benefits, will only have 52% of what they need in order to achieve the minimum living standards, as outlined by the Government. 

 Similarly, working households can get closer to reaching the minimum standard of living level set. However, they are still some way off. For example, a couple with two children (with one full-time working parent on National Living Wage, and the other not working) can reach 76% of the minimum standard of living without cost of living support payments, yet only 79% with them. 

Money.co.uk cost of living survey (September-October 2022)

We polled 2,061 people aged 16+ in the UK to find some of the most recent, and relevant, cost of living stats for 2022. 

We asked people about their current financial situation, any concerns they have, and how the rising cost of living has impacted their mental health. We also asked about their spending habits, how their income and outgoings have changed over the last year, what government support they were seeking, if any, and more.  

1. How much has your annual salary increased in the last 12 months?

Source: money.co.uk survey, September-October 2022

Around a fifth of people surveyed saw an increase of 1-5% in their salary between 2021-22, with almost one in 10 stating their wages have gone up between 5-10%. Only 2% noticed a drop in their incomes over the last 12 months, compared to more than 15% claiming their income has stayed about the same. A 1-5% pay rise was the most common response across all age groups, with the greatest percentage amongst 35-44 year olds (30%). 

2. What is currently your biggest financial concern?

Source: money.co.uk survey, September-October 2022

Almost 45% of people surveyed stated that paying their monthly energy bills was their greatest financial concern during the 2022 cost of living crisis. Around one in 10 claimed they were most worried about paying for groceries and being able to save money. Incidentally, 12% of people claimed they don’t have a biggest concern. 

More than half (53%) of the over 55s are concerned about paying their energy bills. However, more than one in five also believe they don’t have a biggest concern—the most of any age group. By contrast, only a fifth of 16-24 year olds are worried about paying their water, gas, and electricity bills. However, almost a quarter (24%) are fearful of their personal savings. 

Those in the 25-34 age bracket have the greatest amount of concerns, with only 6% stating they didn’t have any big financial worries from the list provided.

Source: money.co.uk survey, September-October 2022

As wages increase, the percentage of respondents who don’t have any financial concerns also increases. Only 3% of those earning less than £15,000 claimed to have no worries, contrasted to almost 20% for those earning above £55,000. 

Paying monthly bills remains the most common financial worry for people in 2022. 50% of those earning between £25,000 and £30,000 admitted this was a cause for concern, compared to 35% of the highest income bracket (more than £55,000 a year). Incidentally, almost half (48%) of those earning under £15,000 were worried about paying their household bills. 

The cost of food shopping is a concern for almost 14% of those in the lowest wage bracket, compared to around 7% for the top earners. Those earning between £45,000 and £55,000 are most worried about their savings (14%) and paying a mortgage (15%). 

Interestingly, almost 9% of those in the lowest wage group are worried about keeping up with mortgage repayments, compared to 18% for the wealthiest group in society. 

3. Over the past 12 months, have you had to rely on anything to pay everyday bills?

Source: money.co.uk survey, September-October 2022

Over the past year, under half (44%) of people surveyed didn’t have to rely on any additional support to pay their bills. More than a fifth (22%) admitted to dipping into their savings, while nearly 15% used a credit card. Around 12% either borrowed money from others, or went into their overdraft, in order to cover the cost of their everyday bills. 

Generally as people get older, the less they rely on additional sources of money to pay their bills. The most financially secure age group were those aged 55+, with more than 60% able to self-fund their bills, compared to only 22% for the 16-24 bracket. 

Almost a quarter of 25-34 year olds used a credit card in the last 12 months to cover bills, compared to less than 8% for the over 55s. Those between 16-24 were more likely to borrow from friends and/or family (26%), whereas 45-54 year olds opted to use their savings (22%).             

4. How much do any dependents (a child, spouse or a relative) cost you per month? If you have more than one dependent, answer with the average cost per dependent.

Source: money.co.uk survey, September-October 2022

From our survey, 21% of those who have dependents claimed this was costing them an extra £50-£150 a month, whereas almost 10% stated having dependents didn’t bring with it an additional monthly expense. 

Almost 18% of those between 35-44 incurred an extra £200-£250 a month by having dependents, compared to just 6% for 16-24 year olds.  

5. How much has the rising cost of living affected your mental health in the past 12 months?

Source: money.co.uk survey, September-October 2022

42% of people surveyed stated that the rising cost of living was having an adverse effect on their mental health. The worst affected groups were 16-24 and 25-34, with 56% and 60% of respondents respectively admitting their mental health had suffered across the past 12 months due to the pressure of rising costs. 

Generally, the older groups in society were less affected, in terms of their mental health, with only 25% of those 55s agreeing with this statement. In fact, almost 45% of those aged 55 and above said rising cost of living had no impact on their mental health at all, compared to only 9% for 16-24 and 25-34 year olds. 

Around 13% of those between 16-24 and 25-34 stated rising living costs was severely affecting their mental health, compared to just 5% of over 55s.

Source: money.co.uk survey, September-October 2022

When broken down into wage brackets, less than half of UK people claimed that their mental health has been impacted by the 2022 cost of living crisis. 

Those earning between £15,000-£25,000, and £25,000-£35,000, were slightly more affected than others (approximately 48%), whereas those earning £55,000+ were least impacted (almost 43%). 

6. What type of business, if any, would you be most likely to stop using if the cost-of-living crisis worsened?

Source: money.co.uk survey, September-October 2022

When surveyed about their spending habits, almost 27% of people said they would likely give up takeaways if the cost of living crisis worsened. This was the most popular choice for every age bracket in our survey. After this, a significant proportion (almost one in five) said they would forgo pubs and restaurants in order to cut back on spending. 

Interestingly, just under 15% of respondents stated they would give up nothing. Almost a quarter of those aged 55+ admitted to this, compared to under 8% for the 25-34 and 35-44 year olds.  

7. How much, if at all, do you feel your overall monthly bills have increased in the past 12 months? [food bills, travel and transport, household bills etc]