How much the average UK family is worse off thanks to cost-of-living crisis

Business & FinancePersonal Finance
8 Oct 2026 • 1:22 PM MYT
The Independent
The Independent

The world’s most free-thinking newspaper

How much the average UK family is worse off thanks to cost-of-living crisis

  • Research from the Resolution Foundation shows British households are on average £2,900 worse off after enduring 13 years of typical price rises over just five years.
  • The inflation surge left an additional 1.7 million families unable to adequately heat their homes in 2022/23, with 18 per cent of low-income households falling into arrears on essential bills by March.
  • Chancellor John Healey faces mounting pressure to deliver cost-of-living relief in his upcoming Budget following pledges of support from Andy Burnham.
  • Resolution Foundation chief economist James Smith advised against universal support packages, urging the government to target assistance squarely at poorer families' energy bills.
  • Green MP Hannah Spencer called for urgent action in the Budget, including funding for a national home insulation scheme and measures to clamp down on energy company profiteering.

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