Economic Attitudes of Brits Widely Differs Amid Cost-of-Living Crisis

Despite recent government handouts, data shows people are reluctant to change their shopping habits amid the cost of living crisis.

Pexels: Photo by maitree rimthong

The 'Cost-of-Living Crisis' has been labelled as "the fall in ‘real’ disposable incomes that the UK has experienced since late 2021" by the Institute for Government.

New data from the Office for National Statistics have shown an increase of energy prices: 93% of people say their household finances have increased, 95% said their food shop has increased and 77% have said their gas and electricity bills have risen. But what are we doing about it?

54% of people have admitted not to doing anything different work related to better their finances due to the cost of living increasing.

49% of people have stated their shopping habits have remained unchanged, despite 40% saying they spend more than they usually did to get the items they normally buy.

Martin Lewis, The Money Saving Expert has said "The rise in the energy price cap is catastrophic for those with the lowest incomes. Yet the pain stretches far further – when combined with all the other price rises.

"For some there is sadly no route to cut expenditure below income; that fix will need political intervention."

The government have released a £2.1 billion 'Level Up' fund to increase economic development across the country to reduce unemployment figures and improve the quality of living.

They had also announced an extra £15 million for students to aid with the cost of living alongside freezing tuition fees.

Despite the above figures, students are making essential cutbacks to ensure they have the money to get by. A National Union of Students' survey said that a quarter of students are left with less than £50 a month after covering rent and bills, and 42 per cent are surviving off less than £100.

This resulted in 96 per cent of students admitting to making cutbacks, with over half spending less on food, another half heating their homes less regularly.

Minister for Skills, Apprenticeships and Higher Education Robert Halfon said: "We recognise students continue to face financial challenges, which is why we are increasing loans and grants for living and other costs for a further year. "

Wayne Hindle, student, said: "I prioritised socialising and partying in my earlier years at university rather than considering saving my money.

"Now I'm at a stage where I'm working 5 days in a row. I enjoy my two days off but them I am back to working in the hopes to save a lot of money this year."