Three quarters of people are worried about the rising cost of living (77%) and some 16% of them worry about it almost every day, according to ONS research.
The research also found that almost half of those who are very worried about rising prices report high levels of anxiety (47%).
Women were more likely to be worried (81% compared to 73% of men), along with the squeezed middle (30-49 years, 82%).
Among those who are very worried about rising costs, 60% are spending less on food shopping and essentials.
The Office for National Statistics data can be found here:Â Worries about the rising costs of living, Great Britain: April to May 2022 – GOV.UK (www.gov.uk)
Additionally the Bank of England/Kantar inflation expectation figures for May were also released today and can be found here:Â Bank of England/Ipsos Inflation Attitudes Survey – May 2022 | Bank of England
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown, said: “We’re plagued by anxiety over the cost of living.
“Women, the squeezed middle, those on lower incomes and people with disabilities are particularly concerned about how they’re going to pay the bills.
“It’s taking a toll on every aspect of our lives, and significant numbers of people are having to take drastic steps to cope. What’s more, we know things are going to get tougher.
Most worried
“Women are more likely to be worried about rising costs than men, partly because on average they tend to have lower incomes, so they often have fewer luxuries to cut out of their budget.
“It means they face having to cut back on the essentials far more quickly. Our previous research also showed that women are more likely to say they take control of the household finances, so they may be closer to the spending decisions than men, so are more worried about how they’re going to make ends meet.
“The squeezed middle are also concerned, because their cash is pulled in so many different directions already. If everything is pulled harder, it’s going to get stretched horribly thin.
“Those with young children are under particular pressure, with nine in ten of those with children aged 0-4 saying they’re worried about rising costs.
“This group usually either has horrible childcare costs to contend with, or are managing on less because one or more of the parents isn’t working full time, or they face both challenges at the same time. It’s always a horribly expensive time of life, but right now it’s incredibly painful.
“Worries are also rife among those coming up to retirement and recently retired. This may be because they made their retirement plans at a time when prices were far lower, and they’re concerned they may not be able to make the maths add up now that they have risen.
“The fact that the state pension increased just 3.1% at a time when inflation is running at 9% means they know that the state safety net is weaker too.
“Younger people are less likely to worry about rising costs, partly because more of them live with their parents, so they don’t have to pay the bills.
“Meanwhile, those over the age of 70 are also likely to face lower levels of worry – 70% of them are worried compared to 77% of younger retirees.
“This owes much to the fact they’re more likely to be on final salary pensions, and the inflation link means they’re protected to some extent.
The impact
“We’re taking sensible steps to try to stay on top of our costs. Among those who are very worried about rising costs, 68% are spending less on non-essentials, 61% are using less gas or electricity and 50% are taking fewer non-essential journeys.
“However, we’re also having to take more extreme steps. Among those who are very worried, 60% are spending less on food shopping and essentials.
“It’s difficult enough to cover our costs right now, but what makes matters worse, is that prices are going to keep rising from here.
“Inflation is expected to remain higher for the rest of the year, and peak at the end of 2022. It means that even those who are coping now may well start struggling later.
“One major concern for those with mortgages is the risk that interest rates could keep rising. This will make life more expensive overnight for anyone on a variable rate, and means a serious headache for anyone who needs to remortgage.
“Today the Bank of England found that 70% of people now expect interest rates to rise over the next 12 months, which gives people something else to worry about.”
