New figures have revealed that the overwhelming majority (91%) of Brits are still grappling with money struggles as a result of the cost of living crisis. This is equal to around 63.1 million people feeling the impact of the ongoing financial squeeze, highlighting its continuing toll on UK households, and that many are in need of support.
The statistics come from the latest survey by Go.Compare Home Insurance, which asked the public to share how the cost of living crisis is affecting their financial decisions. Only 9% of respondents told the comparison site that it’s no longer affecting them, with the vast majority still struggling to keep up.
Around 44% stated that they’re suffering even more financial stress than last year, while 37% said that the cost of living crisis is affecting them around the same amount. Just 16% said they feel better off compared to 12 months ago.
1 in 3 reducing how much they’re saving
One of the most common ways people are dealing with rising costs is by cutting back on non-essential spending. Almost a third (30%) have reduced or cancelled entertainment services like streaming, and 19% have cut back on their internet, TV, or phone packages. Additionally, one in three (33%) have lowered the amount they’re saving, showing that many are having to prioritise immediate bills over long-term financial goals.
A further 6% have reduced spending on important financial commitments, like home insurance and pension payments, highlighting that some are having to make tough decisions to manage their money. Despite their efforts to keep on top of basic living costs, some are still struggling to meet these payments. Around 9% of respondents report difficulty paying their rent, 5% are struggling with mortgage payments, and a fifth (20%) are having trouble paying their utility bills on time.
Nathan Blackler, home insurance expert at Go.Compare, said: “It's concerning to see that some households are cutting back on essential costs like home insurance. For many, the rising cost of living has created an impossible balancing act, forcing them to make difficult choices between protecting their homes and meeting immediate needs. It’s understandable that people are focusing on what feels urgent, such as utility bills and food, but it’s important to remember that home insurance is there to provide a safety net in case of emergencies. Home insurance may feel like an easy expense to cut, but this risks being underinsured during a crisis.
“As the cost of living continues to rise, it’s vital that households review their financial priorities to ensure they’re not compromising on essential coverage. There’s no doubt that these are challenging times, but being underinsured could end up being far more costly in the long run. Those who are struggling can consider seeking advice from the Money and Pensions Service to help resolve their difficulties.”
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