ONS: Households struggling prior to energy hike  

The ONS’ results sampled 3,100 UK adults between 16 and 27 March 2022. Those that reported borrowing more money or using more credit in the previous month (February 2022) than a year ago was 17%.

Lower income households were twice as likely to be using credit. Although these figures are broadly the same as November 2021, the cost-of-living crisis has affected the nation’s ability to save.

The survey found that 43% of respondents would be unable to save money in the next 12 months – the highest proportion since this question was first posited at the start of the Coronavirus pandemic.

ONS suggested that those able to save during the pandemic were accessing those funds, and a quarter of respondents said they had used savings to cover living costs.

Almost a quarter (23%) expressed “it was very difficult or difficult to pay their usual household bills” in the preceding month (February 2022) compared with a year ago. This is an increase from 17% in November 2021.

Of adults currently paying off a mortgage, loan, rent or shared ownership, almost a third (30%) said it was very or somewhat difficult to afford housing costs, with three percent claiming to be behind on rent or mortgage payments.

Almost nine in 10 of those surveyed told the ONS their cost of living had increased, compared with six in 10 back in November.

The rise in energy, fuel and food costs has disproportionately impacted those living in the most deprived parts of the UK, with over a third (34%) reporting struggling to keep up with their bills.

ONS suggested that those able to save during the pandemic were accessing those funds, and a quarter of respondents said they had used savings to cover living costs.

Jack Leslie, senior economist at the Resolution Foundation think tank, said: “Today’s ONS release shows that the cost of living crisis is already hitting UK families hard, with over four out of five adults already reporting an increase in their living costs between February and March 2022.

“This is set to get worse, with the estimated number of households experiencing fuel stress hitting five million this month.

“Going forwards, the Government must do it all it can to protect those who will be hardest hit – with support for low-income households a priority”.