ONS: 16 million people cutting back on food and essentials

This is an increase from the around 32 million adults who reported this when the government researcher first started asking this question in November 2021. Of these increases, 94% of people said they had seen a rise in the price of their food shop, 82% in the price of their gas or electricity and 77% have seen an increase in the price of fuel. 

In addition to this, for those who had seen their cost of living go up, 57% - or around 26 million people - started spending less on non-essentials, 51% - or around 24 million people - have been using less gas and electricity in their home, and 42% - or around 19 million people - have been cutting back on non-essential journeys in their vehicles. 

More than a third of people have also cut back on spending on food and essentials, making this figure around 16 million people. Alongside this, 23% - or around 11 million people - have used savings to cover costs, and 13% - or around six million people - said they were using more credit than usual. 

The research, published today (5 August), comes just a day after the Bank of England confirmed it would implement the highest interest rate rise since 1995 - going up by 0.5% to 1.75%. 

Based on its estimates, the bank also expects consumer price index inflation to go from 9.4% in June to just over 13% in the final quarter of 2022 - with this to remain at very elevated levels throughout most of 2023, before falling to the two percent target two years ahead. 

As well as this, it’s projecting the UK will enter a recession in the fourth quarter of this year, with real household post-tax income projected to fall sharply in 2022 and 2023 while consumption growth turns negative.