Copy article

ONS cost of living report

ended 04. December 2023

The ONS has just published a report showing that, in the period 12 July to 1 October 2023:

  • around 4 in 10 (39%) adults reported that they would not be able to save money in the next 12 months; groups for which this proportion was higher included disabled adults (50%), renters (54%), and lone adults living in a household with at least one dependent child (70%)
  • around 4 in 10 (40%) adults reported that affording their rent or mortgage payments were very or somewhat difficult; groups more likely to report this included Asian or Asian British adults (56%), Black, African, Caribbean or Black British adults (51%), and lone adults living in a household with at least one dependent child (61%)
  • around 3 in 10 of adults (29%) reported an inability to afford an unexpected expense of £850; this proportion was 40% among disabled adults and 53% among renters, and increased to 66% among disabled adults who were renting
  • around 1 in 20 (5%) adults reported running out of food and not being able to afford more; this proportion was 8% among parents living with a dependent child and 13% among renters, and increased to 21% among renters who were parents living with a dependent child

Any thoughts, send them across ASAP as this story is BREAKING.

8 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
The ONS report paints a sobering picture of the UK's current economic landscape. Vulnerable groups, notably disabled adults, renters,and single parents, are disproportionately struggling. Despite a fall in inflation, the cost of essentials has surged, with some items seeing over a 25% price increase in two years. This trend strains household finances, particularly for necessities. The mortgage sector hasn't fully felt the impact yet, but with a tough winter ahead, many face harsh choices between heating, eating or paying their mortgage or rent. Although some economic indicators show recovery, the harsh reality is that 2024 looks daunting for many. This disconnect between macroeconomic trends and individual financial experiences underscores the need for targeted support, especially in the mortgage sector.
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
These latest ONS figures are heartbreaking to read, but not surprising when you see the everyday impact of the cost of living over the past 12 months. 5% of adults running out of food, which doesn't probably even include those using food banks to get by, is a tragic reflection of where the economy is at the moment. The large percentage of households struggling to pay their rent and mortgage is only going to get worse as more and more homeowners and landlords come off their low-rate deals in the coming months. The rent trap is also in full flow with 54% of people renting unable to save anything over the next 12 months, which will damage their ability to build a deposit in order to buy a home. The Bank of England has caused much of this by their excessive and unnecessary rises to the base rate, which did nothing to combat the actual causes of this inflation. They and the Government should hang their heads in shame at these figures.
Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The latest figures from ONS are extremely worrying and show how many households are struggling to keep pace with the rising costs of living. It is a pretty damning verdict on the health of UK plc. A large number of the population is barely getting by, and alarmingly, 5% have fallen into food poverty. 40% of people reporting rent or mortgage affordability problems is a further concern. With circa. 1.4m mortgage rates due to end next year, this number will increase as more households are hit with payment shock. Further to this, it reinforces the need for alternative methods of homeownership for people who cannot afford to save. Expect to see an increase in reliance on credit as people battle to get by, but this in turn will only make matters worse.
Copy

Editor
Ken James
Director at Contractor Mortgage Services
The Cost of Living report title needs to be changed, more like the Cost of Surviving report. Many in society are fighting day to day to just survive.
This report clearly shows that certain sectors of our communities are suffering more than others, coming from a single-parent household I know only too well the pressures they suffer, if it was hard 40 years ago it's even harder now. Rents have been soaring and this is adding pressure on renters, Lenders interest rates on mortgages have been a big news headline for some time and the pressures here are well known. Can you imagine having to make decisions like heating or eating, as we move into the colder part of the year this is only going to exacerbate this issue. Savings that may have been built before now sit depleted, empty in many cases just like some cupboards they are bare and the need for foodbanks has never been stronger. As we head into the Christmas period this report makes for Bleak reading.
Copy

Platinum
Elliott Culley
Director at Switch Mortgage Finance
These latest figures from the Office for National Statistics make for grim reading, but are unfortunately not surprising. With more mortgage holders coming off extremely low rates over the next 12 months and inflation still high, these figures are likely to get worse before they get better. Many households are having a brutal time of it at present.
Copy

Riz Malik
Independent Financial Adviser at R3 Wealth
The ongoing cost of living crisis is impacting households nationwide across all income brackets, and the situation is expected to continue. An increasing number of households transitioning from ultra-low interest rates will experience a significant rise in their mortgage payments, further exacerbating the issue. Similarly, renters are likely to face increased financial strain as landlords refinance, leading to higher rents. It is not going to be a very merry Christmas for many.
Copy

Joshua Gerstler
Chartered Financial Planner at The Orchard Practice
The immediate impact of the cost of living crisis and higher mortgage rates is clear to see in this data. What is not so clear, is the impact this is going to have on people for years to come. With less disposable income, individuals and families are not going to be able to put money aside for their future. With less money going into investments and pensions, families are going to have a less secure retirement and be relying more on the state for support. The financial strain households are under now will impact them when they retire in the future.
Copy

Carla Hoppe
Founder and CEO at Wealthbrite
The sad story told by these figures is that gulf between the “haves” and the “have nots” continues to grow. Alarm bells should be ringing in Westminster looking at the figures for renters who are reporting a lack of savings, running out of money and regular struggles to make their housing payments. For these people the government’s insistence that things are looking up now that inflation has been halved will feel very out of touch indeed.