In October 2025, 63 percent of households in Great Britain reported that their cost of living had increased in the previous month, compared with 72 percent in April. 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.

Real household disposable income per person in the United Kingdom is expected to have grown by ***** percent in 2024/25, with disposable income growth slowing from that point onwards. In 2022/23, disposable income fell by *** percent, after falling by *** percent in 2021/22, and *** percent in 2020/21.

In response to the cost of living crisis, the government of the United Kingdom announced a series of measures to help households in the country. The most widespread of these packages was a 400 British pound energy bill grant announced in 2022, which was allocated to all households in the country. The measure with the highest overall value was the cost of living payment, which will saw approximately eight million UK households on low income receive 650 pounds in two separate payments in 2022, and a further 900 pounds paid in three installments throughout the 2023/24 financial year.

In 2023/24 households in the United Kingdom spent approximately 113.3 British pounds a week on housing, fuel & power, making it the category which the average household spent the most on in that year, with transport being the second-highest spending category at 88.2 pounds a week.

In July 2025, 95 percent of households in Great Britain that reported a cost of living increase in the previous month advised that that their food bills had increased, with 57 percent reporting increased gas or electricity bills.

The UK inflation rate was 3.8 percent in September 2025, unchanged from the previous two months, and the fastest rate of inflation since January 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 education sector, at 7.5 percent, with prices increasing at the slowest rate in the clothing and footwear sector. 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.

In July 2025, 60 percent of households in Great Britain said that they had started to spend less on non-essentials in response to their cost of living increasing.

Retirement homes depend on self-funders or local council funding that covers the retirement needs of people who satisfy financial assessment means tests. Tightening government budgets have meant publicly funded fees have failed to cover providers’ operating costs, forcing retirement homes to cross-subsidise local authority beds with fees from self-funded residents. Revenue is anticipated to climb at a compound annual rate of 3.2% over the five years through 2025-26 to £12.0 billion, and it’s set to rise by 0.8% in 2025-26. Much of this is down to care homes' fees mounting to cover costs and being paid for by self-funders, who are saw their disposable income tick upwards in 2024-25, lifting industry revenue. Although the ageing population supports revenue growth, constrained government spending, delayed reform changes and rising costs (particularly for labour) have put pressure on profit. Demand for beds far outstrips the supply, which is driving investment into the industry. Mounting demand from residents who had delayed joining a retirement home during the pandemic contributed to strong growth in revenue in 2021-22. Care homes' fees then edged up in the three years through 2024-25 to cope with enhanced staffing costs, mounting mortgage payments and heightened energy costs – these were all the result of high inflation. This has been to the dismay of many retirees whose purse strings have tightened thanks to the cost-of-living crisis, making hit harder for them to afford to move into retirement homes. Higher fees have therefore dampened some of demand for beds, but they’ve also increased the sales value of care homes, supporting revenue. Retirement home revenue is expected to rise at a compound annual rate of 1.5% over the five years through 2030-31 to £12.9 billion, driven by an ageing population. By 2036, the number of people aged 85 and over will hit 2.6 million, representing 3.5% of the UK population, according to the Office for National Statistics. However, medical advances will make an older population healthier, allowing people to live independently for longer, dampening growth. Sustainable initiatives will be incorporated into the designs of new homes, helping reduce operational costs for retirement homes and supporting profitability. As real disposable income rises, there will be greater demand for luxury retirement homes, driving sales value and supporting industry revenue growth.

Unlike many other health services, the majority of the UK population has to pay for dental treatment. Dental insurance policies cover treatment provided by both NHS and private dentists. The propensity to purchase dental insurance is greater when people wish to receive treatment from private dentists, as the costs associated with private treatment are much higher. Dental Insurance revenue is anticipated to grow at a compound annual rate of 1.4% over the five years through 2024-25 to £1.1 billion, including estimated growth of 5% in the current year. Regulatory reforms have ramped up the use of reinsurance as a capital risk reduction tool in the industry. The average profit margin has narrowed as a result of intensifying competition and cost pressures associated with the FCA's fair pricing reforms introduced in January 2022. The cost-of-living crisis and spiralling inflation in the two years through 2023-24 hurt demand for dental insurance, as people reined in spending to afford essential goods. However, hefty waiting times for the NHS following the COVID-19 outbreak resulted in many shifting to private dental care, lifting demand for dental coverage and contributing to revenue growth in recent years. In 2024-25, subsiding cost of living pressures and improving economic growth prospects will support demand from individual customers and make businesses more willing to splash out on employee benefits. Dental Insurance revenue is forecast to grow at a compound annual rate of 5.3% over the five years through 2029-30 to reach £1.4 billion. In the coming years, the higher interest rate environment will support investment income, with insurers that typically have high exposure to bonds receiving greater coupon payments, lifting reserves and allowing for more policies to be written. A growing UK workforce and the ageing population will boost demand as dental insurance consumers are more likely to be policyholders through workplace schemes. The average industry profit margin is set to remain constrained due to further competitive pressures and cost increases related to dental service price inflation and increased claims.

In September 2025, the UK inflation rate for goods was 2.9 percent and 4.7 percent for services. Prices for goods accelerated significantly, sharply between 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 this month, the UK's inflation rate was 3.6 percent, up from 3.4 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.

This dataset will be published as Open DataThis dataset was created by joining Scottish Index of Multiple Deprivation Datazone geographies and The Priority Places for Food Index which was developed by the CDRC at the University of Leeds in collaboration with Which?.A composite index formed of data compiled across seven different dimensions relating to food insecurity risk for the four nations in the UK. This version (Version 2.1, July 2024) reflects changes to the data and policy landscape which are detailed in the user guide below.The Priority Places for Food Index (https://priorityplaces.cdrc.ac.uk/) is constructed using open data to capture complex and multidimensional aspects of food insecurity risk. The index was initially developed in response to the 2022 cost of living crisis which has put many of our communities under severe financial pressure and at an increased risk of food insecurity. Building on the CDRC e-food desert index (EFDI), but with additional domains relating to fuel poverty and family food support, the goal of the Priority Places for Food Index is to identify neighbourhoods that are most vulnerable to increases in the cost of living and which have a lack of accessibility to cheap, healthy, and sustainable sources of food.From version 1 to version 2, data have been updated across several of the seven PPFI domains. This includes new area socio-demographics, foodbank, and food retailer location data. Data relating to Free School Meal eligibility has also been updated to reflect the changing policy landscape and to address regional inconsistencies in policies. Areas may look different to version one as a result of the new data incorporated or changes to neighbourhood boundaries. Because of these data changes we recommend that you don’t make comparisons between the versions.The index can be used to inform supermarket location analytics, improve the availability of budget food lines, and to ensure scare resources are targeted effectively.Note: Subject to the Department of Health and Social Care making a statement highlighting inaccuracies in the Healthy Start Uptake data between July 2023-February 2024, we have updated Version 2 of the Priority Places for Food Index (PPFI). Version 2.1 of the PPFI replaces the October 2023 uptake of Healthy Start Vouchers values with the average voucher uptake between January and June 2023 to minimise the impact on the Priority Places for Food Index insights.

A weak spending environment amid economic headwinds casts a shadow over industry performance. Squeezed budgets amid the cost-of-living crisis were a double-edged sword for takeaways and fast-food restaurants over the two years through 2023-24: some consumers cut back on takeaways, while others traded down from full-service restaurants to takeaways and fast food. Inflationary pressures resulted in hikes in labour, energy and sourcing costs, straining profitability. Those with higher disposable incomes have been less impacted, demanding higher quality and healthier options, typically with a higher price tag. Persisting inflation and economic uncertainty weaken consumer confidence and spending in the two years through 2025-26. Revenue is projected to inch upward at a compound annual rate of 0.6% over the five years through 2025-26, including a 0.2% hike in 2025-26. The subdued rate of growth reflects ongoing challenges. The surge of online food ordering has fuelled revenue growth. While online sales peaked during the pandemic, consumers drawn to convenience have become accustomed to ordering takeaways and fast food online. The development of state-of-the-art online platforms and third-party online ordering platforms like Deliveroo and Uber Eats are becoming the bread and butter for takeaway and fast-food outlets, encouraging new players into the industry. Britons' growing health and sustainability consciousness presents an opportunity for takeaway and fast-food businesses to introduce more expensive organic and meat-free menu items to boost revenue and profit. Britons’ tastes for healthy and sustainable takeaway options will continue to climb. Stricter legislation regarding the adverse effects of consuming junk food will promote product development innovation and healthy fast-food alternatives, driving additional revenue streams. As workers return to the office more permanently, demand for takeaway lunch options will swell. Fast food chains will invest heavily in aggressive expansion plans to secure market share and reduce costs. Investment in marketing is likely to increase as operators turn to social media and online advertising to attract younger consumers and secure long-term revenue. Spending on innovation will persist as major players leverage AI and technological advancements to differentiate themselves from competitors and meet growing demand. Revenue is forecast to climb at a compound annual rate of 3.1% to £27.5 billion over the years through 2030-31.

The Floor and Wall Covering industry’s revenue is forecast to climb at a compound annual rate of 1% over the five years through 2024-25 to reach £4.1 billion. Floor and wall covering contractors compete for work in the residential, commercial, public and industrial markets and revenue tends to run procyclical to the wider economy. Challenging economic conditions have reduced contractors' income prospects in recent years, constraining revenue growth. The industry has endured several challenges due to both domestic and global disruptions, including Brexit, COVID-19 and the Russia-Ukraine conflict, which have caused revenue fluctuations. These events have significantly disrupted supply chains, inflating raw material prices and operational costs for contractors, cutting into their profitability. At the same time, some of the escalated costs have been passed onto customers, resulting in limited income opportunities for contractors due to consumers tightening their budgets thanks to the cost-of-living crisis. Persistent inflationary pressures have diminished the post-pandemic recovery in construction activity, weighing on new contract opportunities and constraining growth. The Bank of England’s (BoE) interest rate hike to 5.25% in August 2023 to suppress inflation hampered investment in both the residential and commercial construction market, hitting demand for floor and wall coverings in new buildings. Alongside this, the surge in borrowing costs has prompted homeowners to scale back their spending or turn to DIY home renovation projects. Inflation is easing in 2024-25, which has prompted the BoE to begin cutting the interest rate – it fell to 4.5% in February 2025. However, economic uncertainty persists following the 2024 Autumn Budget’s business tax increases, which has undermined consumer and business confidence, hindering investments and limiting demand for floor and wall covering services. Nonetheless, supportive government policies, like the Affordable Homes Programme, primarily aimed at the residential market, are driving demand, supporting an expected revenue hike of 4.3% in 2024-25 Over the five years through 2029-30, revenue is anticipated to grow at a compound annual rate of 3.4% to £4.8 billion. Strong residential construction activity will continue to drive growth, benefitting from supportive government policies to bolster the UK's housing stock. Non-residential construction activity will benefit from recovering economic conditions, which will support investments in commercial property spaces, like offices, boosting demand. Recovering consumer confidence and incomes should drive a resurgence in demand from homeowners. However, the industry will continue to face persistent labour shortages, which, coupled with anticipated wage hikes, will contribute to escalating operating costs.

In 2023/24, the average household in the United Kingdom spent around *** British pounds a week on health, compared with *** pounds in 2001/02.

Demand for personal trainers is largely dependent on discretionary income, meaning performance in recent years has been widely determined by economic conditions. Industry revenue is expected to decrease at a compound annual rate of 1.2% over the five years through 2024-245 to £805 million. Although revenue has been on an upward trend following the huge fall in 2020-21, the industry still faces many obstacles. The cost-of-living crisis tightened purse strings for individuals, leading to less demand. The growth of online fitness content has made personal training services obsolete due to increased information for individuals to train themselves without needing a personal trainer. However, improved economic conditions and consumer confidence have increased disposable income for individuals, prompting an increase in spending on discretionary services like personal trainers. Increased return to office spaces has increased footfalls to gyms in city centres, increasing revenue opportunities for personal trainers. As a result, revenue is set to increase by 3.2% in 2024-25. Industry revenue is expected to grow at a compound annual rate of 4.7% over the five years through 2029-30 to reach £1 billion as concerns about health and appearance continue to rise. New personal trainers will enter the industry and continue to grow as gym memberships increase. However, personal trainers are likely to face a number of challenges, like online fitness content. However, some personal trainers are adapting to this trend by digitalising their content. Personal trainers are also expanding their qualifications and their portfolio of services to stand out in the saturated market and cater to the growing range of activities individuals are embracing.

The Consumer Price Index of the United Kingdom was 139.2 in the third quarter of 2025, indicating that consumer prices have increased by 39.2 percent when compared with the first quarter of 2015. As of September 2025, the inflation rate for the CPI was 3.8 percent, an uptick from the start of 2025, when prices were rising by three percent. A long period of elevated inflation between 2021 and 2023 peaked in October 2022 and saw prices increase by over 20 percent in just three years. Uptick in inflation expected in 2025 In late 2024, the UK's main economic forecaster, the Office for Budget Responsibility, predicted that the annual inflation rate for 2025 would average out at around 2.6 percent. In March 2025, however, the OBR revised this figure upward, with annual inflation now expected to be 3.2 percent. This uptick in inflation is predicted to peak in the third quarter of the year at 3.7 percent before falling to two percent by the second quarter of 2026. Although this period of higher inflation is predicted to be far less severe than in 2022, it will no doubt put further pressure on households already struggling with their cost of living. Cost of living woes continue The share of UK households reporting that their cost of living was increasing has been steadily rising since Summer 2024. At that time, less than half of UK households reported rising costs, down from 91 percent two years earlier. As of March 2025, however, 59 percent of households said their costs were rising, the highest figure since 2023. Of these households, 93 percent reported that their food shop was increasing, with three quarters of them reporting higher energy costs. With higher inflation predicted in 2025, the pressure on UK households will likely continue, although a crisis on the scale of 2021-2023 will hopefully be avoided.

In 2023/24, the average household in the United Kingdom spent around 70.5 British pounds a week on food and non-alcoholic drinks, compared with 80.9 pounds in 2001/02.

Over the five years through 2024-25, revenue from specialist footwear retailers is forecast to shrink at a compound annual rate of 3.7%, contracting to an estimated £4.2 billion. The soaring popularity of online shopping post-lockdown is the main culprit for this dip in performance. However, recent economic volatility has also pushed customers into the arms of more budget-friendly competitors such as supermarkets, department stores and clothing retailers as people think twice before buying a new pair of shoes. In 2024-2025, revenue is forecast to inch upwards by 0.6%. Stabilising prices and recovering real disposable incomes are diminishing the appeal of budget-friendly competitors and allowing consumers to return to their typical and more flamboyant footwear spending habits, which entails a faster replacement rate and potentially opting for more high-end items. Profit has teetered in recent years with the industry struggling to stay afloat amid the COVID-19 outbreak and the cost-of-living crisis, both of which plagued the retailer sector as a whole. Closure of loss-making branches and the development of online platforms to go alongside retailers’ stores has helped relieve wage and rental cost pressure as well as expand cost-efficient revenue streams. Over the five years through 2029-2030, revenue is forecast to expand at a compound annual rate of 1.5%, growing to an estimated £4.5 billion. Although external competition will remain fierce, continued economic recovery will level the playing field at the lower end of the market, with the attractiveness of budget-friendly competitors dwindling. Mounting concerns over fast fashion, fair labour practices and geopolitical tensions may push consumers further away from budget competitors who typically source overseas to specialist retailers offering top-quality UK-manufactured footwear. The continued development of multichannel shopping experiences as well as the potential for shoe recycling schemes will help boost industry sales by distinguishing specialist retailers via non-price avenues.

In 2023/24, the average household in the United Kingdom spent around 38.7 British pounds a week on household goods and services, compared with 46 pounds in 2001/02.

From April 2026 onwards, the UK's main national minimum wage category, the national living wage, will rise to ***** pounds per hour, up from ***** pounds per hour in the previous financial year. This amount will apply to workers aged 21 and over, compared with 2022 and 2023 when it was only for workers aged 23 and over, and for those aged 25 and over between 2016 and 2021. The main minimum wage from 2010 to 2015 was the 21+ rate, and 22+ rate between 1999 and 2009. Evolution of the minimum wage Since its introduction in 1999, the minimum wage has had various rate categories, usually based on age. For the first five years, there were two categories, one for workers 18 to 21, and another for workers aged 22 and over. In 2004, a minimum wage for under 18s was introduced, and between 2010 and 2015 there were three rates based on age, and one for apprenticeships. Another age based-rate was added in 2016, but from 2024 onwards, the model will revert to four rate categories overall. In addition to the legal minimum wage, there is also a voluntary real living wage, which for 2024/25 is **** pounds per hour, rising to ***** pounds per hour for workers in London. Wages continue to outpace inflation in 2024 Since July 2023, wages have grown faster than inflation in the UK with December 2024 seeing regular weekly earnings grow by *** percent, compared with the CPI inflation rate of *** percent that month. For almost two years between November 2021 and June 2023, wage growth struggled to keep up with inflation, with the biggest gap occurring in October 2022 when inflation peaked at **** percent. The fall in real earnings in one of the most important factors in the UK's ongoing cost of living crisis. At the height of the crisis, around ** percent of UK households were reporting a monthly increase in their cost of living, with this falling to ** percent by March 2024.