Research published by the Joseph Rowntree Foundation — an organisation focused on social inequality — found that financial pressure from rising living costs is now affecting households that would not traditionally have been counted among those in poverty. According to the JRF's cost of living tracker for summer 2026, around 7.4 million households on lower incomes went without at least one essential item during the six-month period running through to May and June of that year.
Goods falling under the category of items considered necessary for an acceptable standard of living span a broad range — from clothing, footwear, and personal hygiene products such as soap, shampoo, and toothbrushes to sanitary items, furniture, household appliances, dental care, non-prescription pain relief, and food. That total stands as the highest recorded since tracking began in 2021, climbing from 7.1 million the year before.
To arrive at its figures, the JRF drew on responses from 4,121 adults living within the bottom two-fifths of the household income distribution. Survey findings covering a six-month window showed that more than four out of every five respondents within the hardest-pressed groups — households claiming Universal Credit, younger families, those identifying as black or of mixed ethnic heritage, people who hold non-UK nationality, homes with three or more children, and single-parent households — had gone without at least one item classed as a necessity at some point during that period.
Households on Universal Credit faced the steepest overall levels of hardship, yet the rate of increase in financial difficulty was climbing more steeply among populations that had not historically encountered it. Among households outside the means-tested benefits system, the share reporting financial strain climbed to 53 percent — a six-point rise from the 47 percent recorded two years earlier.
Among the household groups where the rate climbed most steeply were those carrying no mortgage, those without children, those unaffected by disability or long-term health conditions, and those containing at least one person aged 65 or above.
According to the report, nearly half of households with lower incomes — 47 percent — cut back on portion sizes, went without meals, or experienced hunger at some point during the preceding month, a pattern the document attributed to food costs that have moved beyond what many such families can afford. That figure accounts for 5.6 million households, a count that edged up from the 5.5 million recorded the previous month.
Over the twelve months ending in May 2026, grocery and food prices climbed at an annual rate of 4.1 percent, outpacing the broader 3.6 percent rise recorded across all consumer goods. Data from the British Retail Consortium showed that worldwide pressures drove goods prices 1.5 per cent higher over the twelve months to August, while food costs climbed by 2.8 per cent across the same period.
Food costs rose from 2.2 per cent to 2.8 per cent over a single month, while survey data from the same period showed that 1.5 million households had turned to foodbanks in the preceding six months and roughly half of those questioned had shifted away from fresh produce towards processed alternatives. Separately, 3.8 million households took on debt to cover basic living costs, with 1.3 million of those turning to higher-cost borrowing options — including payday lenders, pawnbrokers, and unlicensed lenders — during May 2026 to meet expenses tied to food, housing, or household bills.
Across the two years leading up to the latest count, roughly 4.5 million households — equivalent to four in every ten of those living on lower incomes — had fallen behind on bills or debt repayments. Household budgets across a range of families have been squeezed over an extended period, with lower thermostat settings, fewer personal hygiene routines, scaled-back social activity, and paused retirement saving all featuring among the adjustments recorded.
Drawn from official data published in March 2026, the number of people across the UK living below the relative poverty line — measured after housing costs — stood at 13.4 million during 2024/25. Among those counted were roughly four million children, with the total spanning one in every five people. Households are counted as living in relative poverty when their earnings fall under 60 per cent of the national median income, with that threshold scaled to reflect how many people share the home. Compared with the subsequently revised 2023/24 total of 12.93 million, the latest number represented a rise.
According to Trussell Trust figures, the number of emergency food parcels handed out reached 2.6 million in 2025 — nearly double the volume recorded half a decade earlier. Parcels distributed by the several hundred food providers operating independently of the Trussell Trust — among them the Rainbow Surprise CIO, which serves the Crumpsall area of north Manchester — fall outside the scope of these totals.
Shabnam Hussain, chief executive of Rainbow Surprise, noted that demand had grown across a range of household types — including single parents, couples where both partners work full-time, part-time and lower-paid workers, and those whose job centre benefits had been sanctioned — with working families generally accounting for a greater share of that upturn than benefit recipients.
A community shop on site offers affordably priced everyday items — both perishable and shelf-stable — drawing its stock from sources such as returned Amazon parcels. Securing donations has become noticeably more difficult. Obtaining affordable groceries has grown more difficult as retail food prices have risen and discounted stock tends to sell out quickly among shoppers managing tighter household budgets. Against that backdrop, colleague Shabana noted that the service handles between 20 and 50 foodbank referrals per week, channelled through GPs, mental health nurses, midwives, and job centre staff. Those who turn to the service for help are entitled to one no-cost emergency food parcel, available on a single occasion. Demand has been climbing across the board.
A Resolution Foundation analysis titled Counting the Cost examined the combined economic burden of three disruptions — the post-pandemic supply squeeze, Russia's military campaign in Ukraine, and conflict across the Middle East — and found that together they have left the average household £2,900 worse off during the current year. According to modelling published by the Energy and Climate Intelligence Unit, households and businesses paying for gas and electricity in the UK stand to absorb an additional £190 million in combined costs for every week the conflict persists.
Projections pooled from British Gas, EDF, and E.ON point to household energy bills climbing by roughly £350 per year when the January–March 2027 quarter arrives. The Joseph Rowntree Foundation's analysis found that rising living costs have reshaped daily financial realities for millions of households, with the lowest-earning fifth of the population projected to experience a 3.4 per cent drop in income across the current parliamentary term.
According to figures from official 2024/25 data, more than half of all children living in Cheetham Hill — 51 per cent — were recorded as living in poverty, with six wards across Greater Manchester falling within the 60 most deprived areas nationally.
