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Separate research from charity Christians Against Poverty found about 35% of adults in the UK worry about their finances every day.<\/p>\n
As the VAT announcement will save households about \u00a345 a year, “the fear of juggling budgets that simply don’t balance remains”, says Juliette Flachm, Acting Head of Policy and Public Affair.<\/p>\n
“With incomes failing to keep pace with the high cost of essentials, many of the people we see are left facing impossible decisions.”<\/p>\n
JRF’s chief economist Chris Belfield said: “Andy Burnham starts his time as prime minister at a time when the cost-of-living crisis has never been more widely felt.<\/p>\n
“Government policy can work. We need greater intervention to control rental prices, make energy affordable and improve the adequacy of Universal Credit so everyone can afford the essentials.”<\/p>\n
A government spokesperson said: “We’re determined to turn the tide on poverty after years of rising hardship. Our recent statistics show that effort is beginning to make a difference – household incomes have risen 5% in real terms, food bank usage has fallen, and food insecurity is down.<\/p>\n
“Work is underway to tackle the cost-of-living pressures through measures such as increasing the National Minimum Wage, removing the two-child limit, implementing the first ever sustained above inflation increase to Universal Credit, and launching the \u00a31bn Crisis and Resilience Fund which will act as a genuine safety net for those in financial crisis.”<\/p>\n
The figures come from the Joseph Rowntree Foundation’s poverty tracker, which surveys about 4,000 people from households in the lowest 40% of incomes.<\/p>\n
The charity noted that food inflation averaged 4.1% between May 2025 and May 2026, compared to 3.6% for overall inflation, which has greater impact on lower-income households because they spend more of their income on food.<\/p>\n
But it also noted that the number of poorer households that couldn’t afford to keep their homes warm has fallen by half a million in two years, after the government reduced average household energy bills by about \u00a3150 a year through changes to green levies and support like the warm homes discount.<\/p>\n<\/div>\n