Cost of living crisis ‘starting to hit wealthier households’

The cost-of-living crisis is no longer affecting only low-income households, a new study has found. Research by Grant Thornton and Retail Economics has predicted, by May 2024, the typical household will be £2,300 worse off than in October 2021.

CEO at Retail Economics Richard Lim explained the “relentless rise in interest rates” means the cost-of-living crisis is no longer restricted to the least affluent households.

He said more and more households were struggling with housing costs due to rising interest rates.

“As pandemic savings have been whittled away, the squeeze on finances has become a war of attrition for many households."

Lim predicted households are probably looking at another ten months of pain when they’ll be forced to try and cut back on spending.

The study found 37% of households questioned in May this year said they were planning to make cutbacks in all areas, compared to 24% 12 months earlier.

Money Wellness findings

The study’s findings tally with our own statistics which show the number of people coming to us for debt advice has risen consistently over the past three months.