People in Great Britain's experiences of and actions following increases in their costs of living, and how these differed by a range of personal characteristics.

In February 2025, 56 percent of households in Great Britain reported that their cost of living had increased in the previous month, compared with 45 percent in late July. Although the share of people reporting a cost of living increase has generally been falling since August 2022, when 91 percent of households reported an increase, the most recent figures indicate that the Cost of Living Crisis is still ongoing for many households in the UK. Crisis ligers even as inflation falls Although various factors have been driving the Cost of Living Crisis in Britain, high inflation has undoubtedly been one of the main factors. After several years of relatively low inflation, the CPI inflation rate shot up from 2021 onwards, hitting a high of 11.1 percent in October 2022. In the months since that peak, inflation has fallen to more usual levels, and was 2.5 percent in December 2024, slightly up from 1.7 percent in September. Since June 2023, wages have also started to grow at a faster rate than inflation, albeit after a long period where average wages were falling relative to overall price increases. Economy continues to be the main issue for voters Ahead of the last UK general election, the economy was consistently selected as the main issue for voters for several months. Although the Conservative Party was seen by voters as the best party for handling the economy before October 2022, this perception collapsed following the market's reaction to Liz Truss' mini-budget. Even after changing their leader from Truss to Rishi Sunak, the Conservatives continued to fall in the polls, and would go onto lose the election decisively. Since the election, the economy remains the most important issue in the UK, although it was only slightly ahead of immigration and health as of January 2025.

This statistic shows the estimated minimum outgoings required to live in London, United Kingdom (UK) for six months in 2014. The cost of rent is estimated to be, at its lowest, 2,784 British pounds over the six month period, with bills at 1,199 British pounds. It is worth noting that the estimated rent is for a shared property.

Abstract copyright UK Data Service and data collection copyright owner.

Background:
A household food consumption and expenditure survey has been conducted each year in Great Britain (excluding Northern Ireland) since 1940. At that time the National Food Survey (NFS) covered a sample drawn solely from urban working-class households, but this was extended to a fully demographically representative sample in 1950. From 1957 onwards the Family Expenditure Survey (FES) provided information on all household expenditure patterns including food expenditure, with the NFS providing more detailed information on food consumption and expenditure. The NFS was extended to cover Northern Ireland from 1996 onwards. In April 2001 these surveys were combined to form the Expenditure and Food Survey (EFS), which completely replaced both series. From January 2008, the EFS became known as the Living Costs and Food (LCF) module of the Integrated Household Survey (IHS). As a consequence of this change, the questionnaire was altered to accommodate the insertion of a core set of questions, common to all of the separate modules which together comprised the IHS. Some of these core questions are simply questions which were previously asked in the same or a similar format on all of the IHS component surveys. For further information on the LCF questionnaire, see Volume A of the LCF 2008 User Guide, held with SN 6385. Further information about the LCF, including links to published reports based on the survey, may be found by searching for 'Living Costs and Food Survey' on the ONS website. Further information on the NFS and Living Costs and Food Module of the IHS can be found by searching for 'Family Food' on the GOV.UK website.

History:
The LCF (then EFS) was the result of more than two years' development work to bring together the FES and NFS; both survey series were well-established and important sources of information for government and the wider community, and had charted changes and patterns in spending and food consumption since the 1950s. Whilst the NFS and FES series are now finished, users should note that previous data from both series are still available from the UK Data Archive, under GNs 33071 (NFS) and 33057 (FES).

Purpose of the LCF
The Office for National Statistics (ONS) has overall project management and financial responsibility for the LCF, while the Department for Environment, Food and Rural Affairs (DEFRA) sponsors the food data element. As with the FES and NFS, the LCF continues to be primarily used to provide information for the Retail Prices Index, National Accounts estimates of household expenditure, analysis of the effect of taxes and benefits, and trends in nutrition. The results are multi-purpose, however, providing an invaluable supply of economic and social data. The merger of the two surveys also brings benefits for users, as a single survey on food expenditure removes the difficulties of reconciling data from two sources.

Design and methodology The design of the LCF is based on the old FES, although the use of new processing software by the data creators has resulted in a dataset which differs from the previous structure. The most significant change in terms of reporting expenditure, however, is the introduction of the European Standard Classification of Individual Consumption by Purpose (COICOP), in place of the codes previously used. An additional level of hierarchy has been developed to improve the mapping to the previous codes. The LCF was conducted on a financial year basis from 2001, then moved to a calendar year basis from January 2006 (to complement the IHS) until 2015-16, when the financial year survey was reinstated at the request of users. Therefore, whilst SN 5688 covers April 2005 - March 2006, SN 5986 covers January-December 2006. Subsequent years cover January-December until 2014. SN 8210 returns to the financial year survey and currently covers April 2015 - March 2016.

Northern Ireland sample
Users should note that, due to funding constraints, from January 2010 the Northern Ireland (NI) sample used for the LCF was reduced to a sample proportionate to the NI population relative to the UK.

Family Food database:
'Family Food' is an annual publication which provides detailed statistical information on purchased quantities, expenditure and nutrient intakes derived from both household and eating out food and drink. Data is collected for a sample of households in the United Kingdom using self-reported diaries of all purchases, including food eaten out, over a two week period. Where possible quantities are recorded in the diaries but otherwise estimated. Energy and nutrient intakes are calculated using standard nutrient composition data for each of some 500 types of food. Current estimates are based on data collected in the Family Food...

The UK inflation rate was three percent in January 2025, up from 2.5 percent in the previous month, and the fastest rate of inflation since March 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years. As of the most recent month, prices were rising fastest in the communications sector, at 6.1 percent, but were falling in both the furniture and transport sectors, at -0.3 percent and -0.6 percent respectively.
The Cost of Living Crisis High inflation is one of the main factors behind the ongoing Cost of Living Crisis in the UK, which, despite subsiding somewhat in 2024, is still impacting households going into 2025. In December 2024, for example, 56 percent of UK households reported their cost of living was increasing compared with the previous month, up from 45 percent in July, but far lower than at the height of the crisis in 2022. After global energy prices spiraled that year, the UK's energy price cap increased substantially. The cap, which limits what suppliers can charge consumers, reached 3,549 British pounds per year in October 2022, compared with 1,277 pounds a year earlier. Along with soaring food costs, high-energy bills have hit UK households hard, especially lower income ones that spend more of their earnings on housing costs. As a result of these factors, UK households experienced their biggest fall in living standards in decades in 2022/23. Global inflation crisis causes rapid surge in prices The UK's high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. Following the initial waves of the virus, global supply chains struggled to meet the renewed demand for goods and services. Food and energy prices, which were already high, increased further in 2022. Russia's invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops. As a result of these factors, inflation surged across Europe and in other parts of the world, but typically declined in 2023, and approached more usual levels by 2024.

Characteristics of sampled households in the Living Costs and Food Survey.

In January 2025, the Consumer Price Index including owner occupiers' housing costs (CPIH) inflation rate of the United Kingdom was 3.9 percent, unchanged from the previous month. The inflation rate fell noticeably after the COVID-19 pandemic, but rose sharply between Spring 2021 and Autumn 2022. After peaking at 9.6 percent in October 2022, CPIH inflation declined throughout 2023 and into 2024, falling to 2.6 percent by September of that year, before increasing again in recent months. Cost of living problems persist into 2025 Although it is likely that the worst of the recent inflation surge may have passed, the issues caused by it look set to linger into 2025 and beyond. While the share of households experiencing living cost rises has fallen from 91 percent in August 2022, to 45 percent in July 2024, this share rose towards the end of the year, with more than half of households reporting rising costs in December. Even with lower inflation, overall consumer prices have already increased by around 20 percent in the last three years, rising to almost 30 percent for food prices, which lower income households typically spend more of their income on. The significant increase in people relying on food banks across the UK, is evidence of the magnitude of this problem, with approximately 3.12 million people using food banks in 2023/24. Other measure of inflation While the CPIH inflation rate displayed here is the preferred index of the UK's Office of National Statistics, the Consumer Price Index (CPI) is often more prominently featured in the media in general. An older index, the Retail Price Index (RPI) is also still used by the government to calculate certain taxes, and rail fare rises. Other metrics include the core inflation rate, which measures prices increases without the volatility of food and energy costs, while price increases in goods and services can also be tracked separately. The inflation rate of individual sectors can also be measured, and as of December 2024, prices were rising fastest in the communications sector, at 6.1 percent, with costs falling in the transport and furniture sectors.

Analysis of the proportion of the British adult population experiencing some form of depression in autumn 2022, including experiences of changes in cost of living and household finances. Analysis based on the Opinions and Lifestyle Survey.

In January 2025, the UK inflation rate for goods was one percent and five percent for services. Prices for goods accelerated significantly, sharply between in 2021 and 2022 before falling in 2023. By comparison, prices for services initially grew at a more moderate rate, but have also not fallen as quickly. The overall CPI inflation rate for the UK reached a recent high of 11.1 percent in October 2022 and remained in double-figures until April 2023, when it fell to 8.7 percent. As of December 2024, the UK's inflation rate was 2.5 percent, down from 2.6 percent in the previous month. Sectors driving high inflation In late 2024, communication was the sector with the highest inflation rate, with prices increasing by 6.1 percent as of December 2024. During the recent period of high inflation that eased in 2023, food and energy prices were particular high, with housing and energy inflation far higher than in any other sector, peaking at 26.6 percent towards the end of 2022. High food and energy prices since 2021 have been one of the main causes of the cost of living crisis in the UK, especially for low-income households that spend a higher share of their income on these categories. This is likely one of the factors driving increasing food bank usage in the UK, which saw approximately 3.12 million people use a food bank in 2023/24, compared with 1.9 million just before the COVID-19 pandemic. The global inflation crisis The UK has not been alone in suffering rapid price increases since 2021. After the start of the COVID-19 pandemic, a series of economic and geopolitical shocks had a dramatic impact on the global economy. A global supply chain crisis failed to meet rising demand in 2021, leading to the beginning of an Inflation Crisis, which was only exacerbated by Russia's invasion of Ukraine in February 2022. The war directly influenced the prices of food and energy, as both countries were major exporters of important crops. European imports of hydrocarbons from Russia were also steadily reduced throughout 2022 and 2023, resulting in higher energy prices throughout the year.

In December 2024, rising costs in the household services sector contributed the most to the 12-month inflation rate in the United Kingdom. That month, the 12-month inflation CPIH inflation rate stood at 3.5 percent.

Abstract copyright UK Data Service and data collection copyright owner.

The Family Expenditure Survey (FES), which closed in 2001, was a continuous survey with an annual sample of around 10,000 households. They provided information on household and personal incomes, certain payments that recurred regularly (e.g. rent, gas and electricity bills, telephone accounts, insurances, season tickets and hire purchase payments), and maintained a detailed expenditure record for 14 consecutive days.

The original purpose of the FES was to provide information on spending patterns for the United Kingdom Retail Price Index (RPI). The survey was a cost-efficient way of collecting a variety of related data that the government departments required to correlate with income and expenditure at the household, tax unit and person levels. The annual FES began in 1957 (with an earlier large scale survey conducted in 1953/54) and was one of the first Department of Employment (DE) systems to be computerised in the early 1960s. The UKDA holds FES data from 1961-2001. The Northern Ireland Family Expenditure Survey (NIFES), which ran from 1967-1998, was identical to the UK FES and therefore used the same questionnaires and documentation. However, starting in 1988, a voluntary question on religious denomination was asked of those aged 16 and over in Northern Ireland. The UKDA holds NIFES data from 1968-1998, under GN 33240.

Significant FES developments over time include:

• 1968: the survey was extended to include a sample drawn from the Northern Ireland FES and a new computer system was introduced which was used until 1985
• 1986: DE and the Office of Population Censuses and Surveys (OPCS) converted the FES into a new database system using the SIR package
• 1989: the Central Statistical Office (CSO) took over responsibility for the survey
• 1994: in April, computerised personal interviewing was introduced using lap-top computers, the database system changed to INGRES and the survey changed from a calendar year to financial year basis
• 1996: in April, OPCS and CSO were amalgamated into the Office for National Statistics (ONS), who assumed responsibility for the FES
• 1998: from April onwards information from expenditure diaries kept by children aged 7 to 15 was included in data, and grossing factors were made available on the database

From 2001, the both the FES and the National Food Survey (NFS) (held at the UKDA under GN 33071) were completely replaced by a new survey, the Expenditure and Food Survey (EFS). Prior to the advent of the EFS, there had previously been considerable overlap between the FES and NFS, with both surveys asking respondents to keep a diary of expenditure. Thus, the 2000-2001 FES was the final one in the series. The design of the new EFS was based on the previous FES; further background to its development may be found in the 1999-2000 and 2000-2001 Family Spending reports. From 2008, the EFS became the Living Costs and Food Survey (LCF) (see under GN 33334).


Main Topics:
Household Schedule:
This schedule was taken at the main interview. Information for most of the questions was obtained from the head of household or housewife, but certain questions of a more individual character were put to every spender aged 15 or over (or 16 or over from 1973 onwards). Until the introduction of the community charge, information on rateable value and rate poundage was obtained from the appropriate local authority, as was information on whether the address was within a smokeless zone. Information was collected about the household, the sex and age of each member, and also details about the type and size of the household accommodation. The main part of the questionnaire related to expenditure both of a household and individual nature, but the questions were mainly confined to expenses of a recurring nature, e.g.:

• Household: housing costs, payment to Gas and Electricity Boards or companies, telephone charges, licences and television rental
• Individual: motor vehicles, season tickets for transport, life and accident insurances, payments through a bank, instalments, refund of expenses by employer, expenditure claimed by self-employed persons as business expenses for tax purposes, welfare foods, education grants and fees

Income Schedule:
Data were collected for each household spender. The schedule was concerned with income, national insurance contributions and income tax. Income of a child not classed as a spender was obtained from one or other of his parents and entered on the parent's questionnaire. Information collected included: employment status and recent absences from work, earnings of an employee, self-employed earnings, National Insurance contributions, pensions and other regular allowances, occasional benefits - social security benefits and other...

How different groups in the population have been affected by an increase in their cost of living, using data from the Opinions and Lifestyle Survey, November 2021 to March 2022.

In June 2024, the household cost inflation rate (HCI) for low-income households in the United Kingdom was 1.7 percent, compared with 2.3 percent for middle-income households, and 3.3 percent for high-income households. Unlike other measures of inflation such as the consumer price index (CPI) the HCI isn't based on a fixed basket of goods, but is weighted to show how price changes affect different households by their economic status.

Abstract copyright UK Data Service and data collection copyright owner.

The Living Costs and Food Survey, 2010: Unrestricted Access Teaching Dataset is based on the Living Costs and Food Survey, 2010 (LCF) (available from the UK Data Archive under SN 6945) and constitutes real data which are used by government, business and other organisations. The teaching dataset is a subset which has been subjected to certain simplifications and additions for the purpose of learning and teaching.

The main differences are:

• the number of variables has been reduced
• a reduced User Guide with codebook is provided
• some variables have been recoded to reduce the level of detail

Further information is available in the study documentation (see below) which includes a User Guide.

Main Topics:

Topics covered include: total expenditure; household income; socio-economic status; and household characteristics.

Based on the government's forecast from October 2024, the real household disposable income per person in the United Kingdom fell by 2.1 percent in the 2022/23 fiscal year, the biggest fall in living standards since 1956 when this type of data was first produced. Living standards did, however, rise in 2023/24 by approximately two percent.