Brits to cut back on essentials due to rise in cost of living

Inflation is at a 40-year high and despite the Bank of England’s efforts to raise interest rates to cool it down, the cost of living keeps soaring. We’re currently in an economic crisis beyond our control and it seems many of us may be forced to sacrifice essentials like putting dinner on the table.

Over half of Britons are cutting back spending to withstand the increases in the cost of living, primarily by reducing energy use (54%) and non-essentials like eating out and going to the cinema (51%) whereas almost a third (31%) plan to cut back on essentials such as food and clothing – according to the latest figures from the Building Societies Association (BSA).

The research, which coincides with the Bank of England’s Monetary Policy Committee (MPC) decision on whether to increase the Bank Rate, shows nearly a quarter (24%) of renters admit they’re not confident about paying their housing costs, double the amount in the first quarter of 2021. This compares to one in twenty (6%) homeowners who are saying they’re worried about paying the mortgage.

Aston spoke to Paul Broadhead, head of mortgage and housing policy at BSA (Building Soceties Assocation).

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