Sixteen million people cut back on food and essentials during cost-of-living crisis, ONS survey finds | Business News

16 million people have cut food and other necessities during the cost of living crisis.

This figure is from the latest Office of National Statistics (ONS) Opinion and Lifestyle Survey and follows dire forecasts from the Bank of England for a 15-month recession. Upcoming.

The ONS survey found that 89% of adults have seen the cost of living increase in the past month, with food, energy and fuel costs being the main factors.

Nearly half of adults who pay their energy bills say it is difficult or somewhat difficult to afford.

And while 13% of people in the UK said they were using more credit than usual, this rose to 18% among those in the most deprived areas.

The ONS surveyed nearly 5,000 households with a response rate of 49.7%.

It comes just days after a forecast from energy consultancy Cornwall Insight said the cap on energy prices would remain above £3,500 for most of next year.

This will follow April’s 54% increase and is forecast to increase by another 70% in October, when the weather gets colder and people use more heating.

Last month, the charity National Energy Action predicted that 8.2 million UK households, or a third, would fall into fuel poverty if the average bill reached £3,250 a year. five.

Meanwhile, inflation is at 9.4% – a level not seen in 40 years – and the Bank of England raised interest rates to 1.75% on Thursday, raising borrowing costs for commodities. million people.

Read more:
Two indicators of deceleration are underway after the Bank of England warned of a 15-month recession
Energy price cap will remain above £3,500 until most of 2023, report warns
The UK economy has been in recession for more than a year, the Bank of England warns when the country raises interest rates
Why does the Bank of England add to my bills by raising the rate?

Laura Suter, head of personal finance at AJ Bell, said: “The figures show the tough decisions people are making, with more than a third of countries having to cut food. and necessities in an attempt to make a living.

“The falling cost of living means that certain groups are finding it harder than others. People with disabilities are more likely to have to cut food and necessities, as are those living in areas where the cost of living is reduced. deprivation area.

“Renters are also more likely to have cut their spending, with many citing rising housing costs as one of the main factors contributing to their higher cost of living. will probably find they feel more crunchy, too.”

She added: “Anyone struggling with costs needs to be prepared for more price increases this winter.

“The best thing anyone struggling right now can do is find out if they can afford the next energy bill increase or food price hike and figure out a plan if they can not.

“Energy companies, mortgage providers and banks are all prepared for people to struggle with affordability, but it’s much better to have a plan in place before you miss a payment. math, instead of burying your head in the sand and hoping for the best.”

Tom Marsland, policy director at disability equality charity Scope, said: “These staggering findings show that millions of people have already had to make a cut, with people with disabilities hard-hit. – even before October’s dreaded energy price hike takes effect.”

“The range has been inundated with calls from disabled people, who have been forced to make severe cuts to personal care, sanitation, food and energy because of rising inflation.

“This is having a serious impact on the lives of people with disabilities, and support from the government will not impact the side.

“Life will cost more if you are disabled, that’s why the government must get more financial support for disabled people now, to prevent millions of people being pushed deeper into poverty.”

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