View source for 2021 present United Kingdom cost-of-living crisis

{{Short description|Ongoing cost-of-living crisis in the United Kingdom}}
{{Use dmy dates|date=November 2022}}
{{Use British English|date=June 2022}}
{{United Kingdom cost of living crisis}}

Since late 2021, the prices for many essential goods in the United Kingdom began increasing faster than [[Income in the United Kingdom|household incomes]], resulting in a fall in [[real income]]s. This is caused in part by a rise in [[inflation]] in the UK, as well as the economic impact of ongoing issues such as the [[Economic impact of the COVID-19 pandemic|COVID-19 pandemic]], [[Economic impact of the Russian invasion of Ukraine|Russia's invasion of Ukraine]], and [[Economic effects of Brexit|Brexit]]. While all in the UK are affected by rising prices, it most substantially affects [[Poverty in the United Kingdom|low-income persons]]. The [[Government of the United Kingdom|British government]] has responded in various ways, such as by making provision for a £650 grant for households in receipt of means-tested benefits, a £150 [[Council Tax|council tax]] rebate, and implementing an [[Energy Price Guarantee]].

== Definition ==
''[[The Big Issue]]'' newspaper defines a [[cost of living|cost-of-living]] crisis as "a scenario in which the cost of everyday essentials like energy and food is rising much faster than average incomes".<ref name="Fiveways"/> The think-tank [[Institute for Government]] defines the UK's cost-of-living crisis as "the fall in [[Real income|real disposable incomes]] (that is, adjusted for inflation and after taxes and benefits) that the UK has experienced since late 2021".<ref name="Hourston 2022">{{cite web |last=Hourston |first=Peter |date=1 June 2022 |title=Cost of living crisis |url=https://www.instituteforgovernment.org.uk/explainers/cost-living-crisis |work=[[Institute for Government]] |access-date=12 June 2022}}</ref>

== Causes ==
[[File:Uk Inflation data.webp|thumb|280px|Uk Inflation data
{{legend-line|#00A2FF solid 4px|[[Consumer price index|CPI]]}}
{{legend-line|#61D836 solid 4px|CPIH (CPI+OOH)}}
{{legend-line|#929292 solid 4px|OOH [[Owner-occupancy|Owner occupied]] housing inflation}}
]]
Both global and local factors have contributed to the UK's cost-of-living crisis. According to [[Bank of England]] governor [[Andrew Bailey (banker)|Andrew Bailey]], about 80% of the causes driving the cost-of-living crisis are global.<ref name="compares">{{cite web |author=The Week Staff |date=17 May 2022 |title=How the UK's cost-of-living crisis compares with the rest of the world|url=https://www.theweek.co.uk/business/956773/how-the-uks-cost-of-living-crisis-compares-with-the-rest-of-the-world |work=[[The Week]] |access-date=12 June 2022 |archive-date=17 May 2022 |archive-url=https://web.archive.org/web/20220517140908/https://www.theweek.co.uk/business/956773/how-the-uks-cost-of-living-crisis-compares-with-the-rest-of-the-world |url-status=live}}</ref> These include the various forms of instability the world has experienced in the early 2020s such as the [[COVID-19 pandemic]], [[2020–present global chip shortage|a chip shortage]], [[2021–2023 global energy crisis|an energy crisis]], [[2021–2023 global supply chain crisis|a supply chain crisis]],<ref>{{Cite news |date=3 February 2022 |title=In numbers: what is fuelling Britain's cost of living crisis? |url=https://www.theguardian.com/business/2022/feb/03/in-numbers-britains-cost-of-living-crisis |access-date=11 September 2022 |work=[[The Guardian]] |language=en |archive-date=11 March 2022 |archive-url=https://web.archive.org/web/20220311013215/https://www.theguardian.com/business/2022/feb/03/in-numbers-britains-cost-of-living-crisis |url-status=live }}</ref> and [[Russian invasion of Ukraine|Russia's invasion of Ukraine]].<ref>{{Cite news |last=Borrett |first=Amy |title=Cost of living crisis: How the war in Ukraine is eroding living standards in the UK |url=https://news.sky.com/story/cost-of-living-crisis-how-the-war-in-ukraine-is-eroding-living-standards-in-the-uk-12568365 |access-date=11 September 2022 |work=[[Sky News]] |language=en |archive-date=11 September 2022 |archive-url=https://web.archive.org/web/20220911134507/https://news.sky.com/story/cost-of-living-crisis-how-the-war-in-ukraine-is-eroding-living-standards-in-the-uk-12568365 |url-status=live }}</ref> The UK was reported to be among the worst affected among the world's advanced economies. 

In 2021, the UK's inflation was less than that of the US, but high US inflation was not generally experienced as a cost-of-living crisis due to the stimulus cheques that had been distributed to American households.<ref name="Sherman 2022a">{{cite web |last=Sherman |first=Natalie |date=14 June 2022 |title=Why is inflation in US higher than elsewhere? |url=https://www.bbc.co.uk/news/business-61569559 |work=[[BBC News]] |language=en-GB |access-date=14 June 2022 |archive-date=14 June 2022 |archive-url=https://web.archive.org/web/20220614000125/https://www.bbc.co.uk/news/business-61569559 |url-status=live }}</ref> Though in 2022 the cost-of-living crisis was also reported as being a global phenomenon, having impacts that include those living in the US,<ref>{{cite news |last=Stepek |first=John |date=11 February 2022 |title=The cost of living crisis is global – US inflation just hit another 40-year high |url=https://moneyweek.com/economy/inflation/604444/cost-of-living-crisis-is-global-us-inflation-at-40-year-high |work=[[MoneyWeek]] |access-date=18 June 2022 |archive-date=26 May 2022 |archive-url=https://web.archive.org/web/20220526101659/https://moneyweek.com/economy/inflation/604444/cost-of-living-crisis-is-global-us-inflation-at-40-year-high |url-status=live }}</ref> across Europe,<ref>{{cite news |last=Frost |first=Rosie |date=11 May 2020 |title=Cost of living crisis: Italy, Germany and Ireland are the first to cut public transport prices |url=https://www.euronews.com/green/2022/05/11/cost-of-living-crisis-italy-germany-and-ireland-are-the-first-to-cut-public-transport-pric |work=[[EuroNews]] |access-date=18 June 2022 |archive-date=18 June 2022 |archive-url=https://web.archive.org/web/20220618165137/https://www.euronews.com/green/2022/05/11/cost-of-living-crisis-italy-germany-and-ireland-are-the-first-to-cut-public-transport-pric |url-status=live }}</ref> and as risking an "apocalyptic" impact for those in the developing world.<ref>{{cite news |last=Tisdall |first=Simon |date=21 May 2022 |title=Apocalypse now? The alarming effects of the global food crisis |url=https://www.theguardian.com/world/2022/may/21/apocalypse-now-the-alarming-effects-of-the-global-food-crisis |work=[[The Guardian]] |access-date=18 June 2022 |archive-date=21 May 2022 |archive-url=https://web.archive.org/web/20220521132751/https://www.theguardian.com/world/2022/may/21/apocalypse-now-the-alarming-effects-of-the-global-food-crisis |url-status=live }}</ref> 

Causes unique to the UK include labour shortages related to foreign workers leaving due to [[Brexit]], and additional taxes on households. Factors that have worsened the crisis since 1 April 2022 include [[Ofgem]] increasing the household energy price cap by 54%, an increase in [[National Insurance]], and a rise in [[Council Tax]].<ref name="Fiveways">{{cite news |last1=Wilson |first1=Sarah |last2=Westwater |first2=Hannah |date=9 June 2022 |title=Five ways the cost of living is rising – and how to get help if you're struggling |url=https://www.bigissue.com/news/social-justice/five-ways-the-cost-of-living-is-going-up-and-how-to-get-help-if-youre-struggling/ |work=[[The Big Issue]] |access-date=12 June 2022 |archive-date=29 May 2022 |archive-url=https://web.archive.org/web/20220529121940/https://www.bigissue.com/news/social-justice/five-ways-the-cost-of-living-is-going-up-and-how-to-get-help-if-youre-struggling/|url-status=live}}</ref><ref name="compares"/><ref name="numbers"/>  Researchers in the [[Centre for Economic Performance]] at the [[London School of Economics]] investigated trade flows and consumer prices of food products in the UK and found Brexit increased food prices due to increased red tape when food is imported from Europe.  This affected poorer households disproportionately.<ref>[https://www.theguardian.com/politics/2022/dec/01/brexit-added-nearly-6bn-to-uk-food-bills-in-two-years-research-finds Brexit added nearly £6bn to UK food bills in two years, research finds] {{Webarchive|url=https://web.archive.org/web/20221201122545/https://www.theguardian.com/politics/2022/dec/01/brexit-added-nearly-6bn-to-uk-food-bills-in-two-years-research-finds |date=1 December 2022 }} ''[[The Guardian]]''</ref>  Unemployed people in the UK receive lower fiscal support than the average for [[OECD]] countries, and UK salaries have not risen substantially since the [[2007–2008 financial crisis|financial crisis of 2007–2008]].<ref>{{Cite news |date=13 July 2022 |title=Cost of living: Why are things so hard for so many people? |language=en-GB |work=[[BBC News]] |url=https://www.bbc.com/news/uk-62128069 |access-date=11 September 2022 |archive-date=11 September 2022 |archive-url=https://web.archive.org/web/20220911133939/https://www.bbc.com/news/uk-62128069 |url-status=live }}</ref> 

Insufficient long-term gas storage facilities resulted in the UK energy prices being overexposed to the market fluctuations.<ref name="bloomberg22bills">{{cite news |last1=Mathis |first1=Will |title=UK Energy Bills Set to Peak Above £500 as Russia Cuts Gas |url=https://www.bloomberg.com/news/articles/2022-07-27/uk-energy-bills-are-set-to-top-500-per-month-as-russia-cuts-gas |work=[[Bloomberg News]] |date=27 July 2022 |archive-url=http://archive.today/2022.07.27-130044/https://www.bloomberg.com/news/articles/2022-07-27/uk-energy-bills-are-set-to-top-500-per-month-as-russia-cuts-gas |url-status=live |archive-date=27 July 2022}}</ref><ref name="euronews22factcheck">{{cite news |last1=Medlicott |first1=Lauren Crosby |title=Fact or fiction: Is Putin to blame for the UK energy crisis? |url=https://www.euronews.com/green/2022/03/17/fact-or-fiction-is-putin-to-blame-for-the-uk-energy-crisis |work=[[Euronews]] |date=17 March 2022 |access-date=27 August 2022 |archive-date=27 August 2022 |archive-url=https://web.archive.org/web/20220827045623/https://www.euronews.com/green/2022/03/17/fact-or-fiction-is-putin-to-blame-for-the-uk-energy-crisis |url-status=live }}</ref> Household income, whether from wages or benefits, have not generally kept pace with rising prices.<ref name="Hourston 2022"/><ref name="Fiveways"/><ref name="numbers"/> In April 2022, UK [[real wages]] fell by 4.5%, the sharpest fall since records began back in 2001.<ref>{{cite web |last=Sillars |first=James |date=14 June 2022 |title=Cost of living: Inflation takes record bite from regular pay while jobless rate rises unexpectedly |url=https://news.sky.com/story/cost-of-living-jobless-rate-hits-1973-low-as-record-numbers-seek-shield-by-entering-work-12633520 |work=[[Sky News]] |access-date=14 June 2020 |archive-date=14 June 2022 |archive-url=https://web.archive.org/web/20220614063734/https://news.sky.com/story/cost-of-living-jobless-rate-hits-1973-low-as-record-numbers-seek-shield-by-entering-work-12633520 |url-status=live }}</ref> By July 2022, inflation had risen to over 10%, the highest level in 40 years, and the [[Bank of England]] was forecasting it could reach 13% by the end of the year. Energy costs for the typical British household were expected to rise 80% from October 2022, from £1,971 to £3,549,<ref>{{cite web |url=https://www.cnn.com/2022/08/31/business/uk-cost-of-living-crisis-elderly-tory-leadership-intl-gbr-cmd/index.html |title='Starve or freeze to death': Millions of elderly Brits fear a grim choice this winter as costs spiral |first=Kara |last=Fox |publisher=[[CNN]] Business |date=31 August 2022 |access-date=31 August 2022 |archive-date=31 August 2022 |archive-url=https://web.archive.org/web/20220831065942/https://www.cnn.com/2022/08/31/business/uk-cost-of-living-crisis-elderly-tory-leadership-intl-gbr-cmd/index.html |url-status=live }}</ref> until [[Liz Truss]], who was Prime Minister at the time, announced measures to limit these increases.

On 23 September 2022, UK Chancellor [[Kwasi Kwarteng]] announced his [[September 2022 United Kingdom mini-budget|mini-budget]], backed by Truss, which included widespread [[Tax cut|tax cuts]]. The package included cuts to stamp duty, removing a cap on bankers' bonuses and the abolishment of the 45% rate of income tax for those earning £150,000 or more a year. These cuts aimed to encourage foreign investment and economic growth but were not costed and spooked financial markets. This caused the pound to fall to a low of $1.03, and government borrowing costs increased significantly. The [[Bank of England]] reacted by raising interest rates, causing mortgage payments to increase significantly as well as affecting many people's pensions and savings. By late October 2022, Truss and Kwarteng had been replaced by [[Rishi Sunak]] and [[Jeremy Hunt]] respectively, and all of the mini budget's proposals had effectively been cancelled. The pound regained some strength by this point, but interest rates remained high, stretching household incomes.{{cn|date=May 2023}}

== Effects and timeline ==
Based on an [[Office for National Statistics]] (ONS) survey performed between 27 April and 22 May 2022, 77% of UK adults reported feeling worried about the rising cost of living, with 50% saying they worried "nearly every day". A separate ONS survey taken from 25 May to 5 June found 52% of respondents had cut back on their energy use.<ref>{{cite web |last=Inman |first=Phillip |date=10 June 2022 |title=Rising cost of living a worry for 77% of adults in Great Britain, says ONS |url=https://www.theguardian.com/business/2022/jun/10/rising-cost-of-living-a-worry-for-adults-in-great-britain-says-ons |work=[[The Guardian]] |access-date=12 June 2022 |archive-date=10 June 2022 |archive-url=https://web.archive.org/web/20220610115405/https://www.theguardian.com/business/2022/jun/10/rising-cost-of-living-a-worry-for-adults-in-great-britain-says-ons |url-status=live}}</ref> While rising prices have affected all social classes, the poor have been impacted the most.<ref name="numbers">{{cite web |last1=Partington |first1=Richard |last2=Kirk |first2=Ashley |date=3 February 2022 |title=In numbers: what is fuelling Britain's cost of living crisis? |url=https://www.theguardian.com/business/2022/feb/03/in-numbers-britains-cost-of-living-crisis |work=[[The Guardian]] |access-date=12 June 2022 |archive-date=3 February 2022 |archive-url=https://web.archive.org/web/20220203083943/https://www.theguardian.com/business/2022/feb/03/in-numbers-britains-cost-of-living-crisis |url-status=live}}</ref> According to a survey by the ''Food Foundation'' think tank published in February 2022, one million UK adults went a whole day without eating over the past month.<ref>{{cite web |last=Butler |first=Patrick |date=7 February 2022 |title=1m UK adults 'go entire day without food' in cost of living crisis |url=https://www.theguardian.com/society/2022/feb/07/1m-uk-adults-go-entire-day-without-food-in-cost-of-living-crisis |work=[[The Guardian]] |access-date=12 June 2022 |archive-date=7 February 2022 |archive-url= https://web.archive.org/web/20220207143013/https://www.theguardian.com/society/2022/feb/07/1m-uk-adults-go-entire-day-without-food-in-cost-of-living-crisis |url-status=live}}</ref> 

Inflation began rising sharply in 2021, affecting a wide range of goods and services. Transport costs have been especially affected, but also many others, including costs for food, furniture, household items, electricity and clothing.<ref name = "numbers"/> The ''[[Financial Times]]'' reported in May 2022 that the crisis caused UK [[consumer confidence]] to fall to its lowest level since 1974.<ref>{{cite web |last=Chan |first=Wai Kwen |date=20 May 2022 |title=No easy solution to UK cost of living crisis |url=https://www.ft.com/content/f813e3a0-6dc3-4105-b205-97df99a3a10a |work=[[Financial Times]] |access-date=12 June 2022 |archive-date=20 May 2022 |archive-url=https://web.archive.org/web/20220520171657/https://www.ft.com/content/f813e3a0-6dc3-4105-b205-97df99a3a10a |url-status=live}}</ref> In June, charities had reported the crisis is affecting people's mental health, with one publishing a survey where 9% of responding parents had said their children had begun [[self-harming]].<ref>{{cite web |last1=Martin |first1=Nick |last2=Griffith |first2=Ella |date=20 June 2022 |title=Cost of living: 'I can't take it anymore' – We asked Britons how the crisis is affecting them |url=https://news.sky.com/story/cost-of-living-nearly-third-of-people-feel-more-depressed-about-the-rising-prices-than-they-did-six-months-ago-sky-news-poll-finds-12636716 |work=[[Sky News]] |access-date=20 June 2022 |archive-date=19 June 2022 |archive-url=https://web.archive.org/web/20220619220234/https://news.sky.com/story/cost-of-living-nearly-third-of-people-feel-more-depressed-about-the-rising-prices-than-they-did-six-months-ago-sky-news-poll-finds-12636716 |url-status=live }}</ref><ref>{{cite web |last=Ambrose |first=Tom |date=18 June 2022 |title=Children stressed and self-harming over UK cost of living crisis |url=https://www.theguardian.com/society/2022/jun/18/children-stressed-and-self-harming-uk-cost-of-living-crisis-childhood-trust |work=[[The Guardian]] |access-date=20 June 2022 |archive-date=20 June 2022 |archive-url=https://web.archive.org/web/20220620010618/https://www.theguardian.com/society/2022/jun/18/children-stressed-and-self-harming-uk-cost-of-living-crisis-childhood-trust |url-status=live }}</ref>

On 10 November 2022, [[Nursing|nurse]]s and other medical personnel across the [[National Health Service|NHS]] voted to [[Strike action|strike]], under the [[Royal College of Nursing]]. The nurses stated this was due to failing wages, [[inflation]], [[overwork]], and underfunding. The industrial action affects NHS [[hospital]]s throughout the UK. Nurses are still expected to work certain days at reduced-capacity to ensure the NHS is still [[Organizational structure|operational]].<ref>{{Cite web|url=https://www.msn.com/en-gb/health/medical/where-are-nurses-striking-full-list-of-nhs-trusts-taking-part-in-the-strike-and-when-the-dates-could-be/ar-AA13Xykp|title=Where are nurses striking? Full list of NHS trusts taking part in the strike and when the dates could be|website=MSN|access-date=10 November 2022|archive-date=10 November 2022|archive-url=https://web.archive.org/web/20221110141944/https://www.msn.com/en-gb/health/medical/where-are-nurses-striking-full-list-of-nhs-trusts-taking-part-in-the-strike-and-when-the-dates-could-be/ar-AA13Xykp|url-status=live}}</ref><ref>{{Cite web|url=https://inews.co.uk/news/health/nurses-strike-nhs-staff-vote-strikes-december-2022-row-inflation-pay-rise-1959729|title=NHS nurses vote to strike in December over below inflation pay rise|first=Paul|last=Gallagher|date=9 November 2022|website=inews.co.uk|access-date=10 November 2022|archive-date=10 November 2022|archive-url=https://web.archive.org/web/20221110141943/https://inews.co.uk/news/health/nurses-strike-nhs-staff-vote-strikes-december-2022-row-inflation-pay-rise-1959729|url-status=live}}</ref><ref>{{Cite web|url=https://www.nursingtimes.net/news/policies-and-guidance/rcn-ballot-members-in-wales-vote-to-strike-at-all-but-one-employer-10-11-2022/|title=RCN ballot: Members in Wales vote to strike at all but one employer|first=Megan|last=Ford|date=10 November 2022|access-date=10 November 2022|archive-date=10 November 2022|archive-url=https://web.archive.org/web/20221110141945/https://www.nursingtimes.net/news/policies-and-guidance/rcn-ballot-members-in-wales-vote-to-strike-at-all-but-one-employer-10-11-2022/|url-status=live}}</ref>

The [[Office for National Statistics]] stated on 11 November that business investment fell during the three months to September and was below the pre-pandemic levels.  [[Gross domestic product]] fell during the three months to September due to a decline in manufacturing "across most industries" according to the ONS.<ref>[https://www.bbc.co.uk/news/uk-63582201 Recession looms as UK economy starts to shrink] {{Webarchive|url=https://web.archive.org/web/20221111121422/https://www.bbc.co.uk/news/uk-63582201 |date=11 November 2022 }} ''[[BBC]]''</ref>

On 8 December 2022 ''[[The Guardian]]'' reported that according to research by the [[Joseph Rowntree Foundation]], over 3 million UK low-income households could not afford to heat their homes. According to the research by the foundation, roughly 710,000 households had difficulty paying for food, heating and warm clothing. The foundation urged the government to increase [[Universal Credit]]. A government spokesperson said that the support of the most vulnerable remains a priority and that millions of the most needy people are being given at least £1,200 in direct payments to protect them against rising prices in addition to the £400 being given to each household towards energy costs. The spokesperson said that the support also includes a winter energy price guarantee worth approximately £900 for a typical household and a household support fund to help people with essential costs and that the chancellor had announced further efforts to support those most in need next year.<ref name=":1">[https://www.theguardian.com/society/2022/dec/08/uk-weather-millions-households-cannot-afford-heat-homes Millions cannot afford to heat homes as UK faces Arctic snap] {{Webarchive|url=https://web.archive.org/web/20221208120912/https://www.theguardian.com/society/2022/dec/08/uk-weather-millions-households-cannot-afford-heat-homes |date=8 December 2022 }}''[[The Guardian]]''</ref> 

The Joseph Rowntree Foundation said their research showed that hundreds of thousands of households could not afford to protect themselves from cold and that prices of essentials were rising steeply with energy bills and were nearly double the level the previous winter.<ref name=":1" /> A briefing from the Department of Health and Social Care (DHSC), detailing the plans they have made to take on thousands of volunteers to counteract staff shortfalls during the 2022/23 winter, included a warnings about the impact on hospital admissions that the cold weather, increased fuel prices, and cost of living might have, especially for the elderly.<ref>[https://www.theguardian.com/society/2022/dec/10/revealed-nhs-plan-draft-volunteers-winter-crisis Revealed: NHS planning to draft thousands of volunteers as it faces winter crisis] {{Webarchive|url=https://web.archive.org/web/20221211110607/https://www.theguardian.com/society/2022/dec/10/revealed-nhs-plan-draft-volunteers-winter-crisis |date=11 December 2022 }} ''[[The Guardian]]''</ref>

== Responses ==

=== Government ===
Early government responses to rising inflation included a 6.6% rise in the minimum wage, which was announced in 2021, and came into effect in April 2022. The UK government intensified its efforts to respond to the cost-of-living crisis in May 2022, with a £5bn [[Windfall tax (United Kingdom)|windfall tax]] on energy companies to help fund a £15bn support package for the public. The package included every household getting a £400 discount on energy bills, which would be in addition to a £150 council tax refund the government had already ordered. For about 8 million of the UK's lowest income households, a further £650 payment was announced. Additionally, pensioners or those with disability would qualify for extra payments, on top of the £550 that every household gets, and the £650 they would receive if they had a low income.<ref name="numbers"/><ref>{{cite web |author=The editorial board |date=27 May 2022 |title=A striking U-turn to alleviate the UK cost of living crisis |url=https://www.ft.com/content/05e49e39-a569-4346-88b9-4543ec9efbe1 |work=[[Financial Times]] |access-date=12 June 2022 |archive-date=27 May 2022 |archive-url=https://web.archive.org/web/20220527171709/https://www.ft.com/content/05e49e39-a569-4346-88b9-4543ec9efbe1 |url-status=live}}</ref><ref>{{cite news |last=Clinton |first=Jane |date=10 June 2022 |title=How will the £650 one-off payment be paid? If you should apply for cost of living support and who is eligible |url=https://inews.co.uk/news/consumer/how-apply-for-650-one-off-payment-paid-who-cost-living-help-1679452 |work=[[iNews]] |access-date=12 June 2022 |archive-date=10 June 2022 |archive-url=https://web.archive.org/web/20220610094451/https://inews.co.uk/news/consumer/how-apply-for-650-one-off-payment-paid-who-cost-living-help-1679452 |url-status=live}}</ref><ref>{{cite web |last=Thomas |first=Daniel |date=15 June 2022 |title=Millions to get first cost-of-living payment from 14 July |url=https://www.bbc.co.uk/news/business-61802109 |website=[[BBC News]] |access-date=15 June 2022 |archive-date=14 June 2022 |archive-url=https://web.archive.org/web/20220614235125/https://www.bbc.co.uk/news/business-61802109 |url-status=live }}</ref> 

In June 2022, business secretary [[Kwasi Kwarteng]] ordered an urgent review of the motor fuel market to complete by 7 July, to see if consumer prices were excessively high.<ref>{{cite web |last=Ford Rojas |first=John-Paul |date=12 June 2022 |title=Cost of living crisis: 'Urgent' review of fuel market ordered amid surging pump prices |url=https://news.sky.com/story/cost-of-living-crisis-urgent-review-of-fuel-market-ordered-amid-surging-pump-prices-12632477 |work=[[Sky News]] |access-date=13 June 2022 |archive-date=13 June 2022 |archive-url=https://web.archive.org/web/20220613075233/https://news.sky.com/story/cost-of-living-crisis-urgent-review-of-fuel-market-ordered-amid-surging-pump-prices-12632477 |url-status=live }}</ref> The measures were called insufficient by many people and organisations, including outgoing Prime Minister [[Boris Johnson]], with the Bank of England predicting that the UK would enter recession by 2023.<ref>{{Cite web |date=3 May 2022 |title=Boris Johnson admits efforts to ease cost of living crisis not enough |url=https://www.theguardian.com/business/2022/may/03/boris-johnson-efforts-to-ease-cost-of-living-crisis-not-enough |access-date=19 August 2022 |website=[[The Guardian]] |language=en |archive-date=19 August 2022 |archive-url=https://web.archive.org/web/20220819165340/https://www.theguardian.com/business/2022/may/03/boris-johnson-efforts-to-ease-cost-of-living-crisis-not-enough |url-status=live }}</ref><ref>{{Cite web |date=19 August 2022 |title='Lost generation': small businesses folding across UK as energy bills land |url=https://www.theguardian.com/money/2022/aug/19/uk-small-businesses-forced-to-close-by-soaring-energy-bills |access-date=19 August 2022 |website=[[The Guardian]] |language=en |archive-date=19 August 2022 |archive-url=https://web.archive.org/web/20220819151733/https://www.theguardian.com/money/2022/aug/19/uk-small-businesses-forced-to-close-by-soaring-energy-bills |url-status=live }}</ref>

Johnson's successor [[Liz Truss]] announced a package of subsidies for rising energy bills with an estimated potential cost of up to £150{{Nbsp}}billion, depending on future wholesale prices.<ref name=":0" /> The main piece of this package was the [[Energy Price Guarantee]], which would mean that a UK household with "average energy usage" would pay no more than £2,500 a year on energy, although this was widely misinterpreted as Truss stated in media interviews that "nobody would pay more than £2,500". She later clarified this, while ruling out introducing a new windfall tax on the profits of energy producers and suppliers.<ref>{{Cite news |last=Ward-Glenton |first=Hannah |title=UK PM Truss to unleash billions to help with energy bills. But there are big questions over funding |url=https://www.cnbc.com/2022/09/08/uks-liz-truss-will-unleash-billions-of-pounds-to-help-with-energy-bills.html |access-date=11 September 2022 |work=[[CNBC]] |language=en |archive-date=11 September 2022 |archive-url=https://web.archive.org/web/20220911133317/https://www.cnbc.com/2022/09/08/uks-liz-truss-will-unleash-billions-of-pounds-to-help-with-energy-bills.html |url-status=live }}</ref><ref name=":0">{{Cite news |date=8 September 2022 |title=Energy bills to be capped at £2,500 for typical household |language=en-GB |work=[[BBC News]] |url=https://www.bbc.com/news/business-62831698 |access-date=11 September 2022 |archive-date=11 September 2022 |archive-url=https://web.archive.org/web/20220911135057/https://www.bbc.com/news/business-62831698 |url-status=live }}</ref> The subsidies were initially planned to last for two years for consumers and six months for businesses, but in October the new Chancellor [[Jeremy Hunt]] said that the package would continue until April 2023 and that from this date support would be targeted at "the most vulnerable."<ref>{{Cite news |last=Barrett |first=Claer |date=17 October 2022 |title=UK household energy bills to rise as Hunt redraws support scheme |work=[[Financial Times]] |url=https://www.ft.com/content/a9668dab-d495-4331-9e8c-fc580af254c7 |access-date=19 October 2022 |archive-date=18 October 2022 |archive-url=https://web.archive.org/web/20221018161107/https://www.ft.com/content/a9668dab-d495-4331-9e8c-fc580af254c7 |url-status=live }}</ref> 

After his appointment as prime minister in October 2022 following Truss' resignation [[October 2022 United Kingdom government crisis|amid an economic and credibility crisis]] caused by [[September 2022 United Kingdom mini-budget|the September 2022 mini-budget]] proposed by Truss and Kwarteng, [[Rishi Sunak]] continued the package of subsidies for rising energy bills. As chancellor, he provided some funding to help vulnerable people cope with the rising cost of living.<ref>{{cite news |date=23 March 2022 |title=Spring Statement: Rishi Sunak seeks to combat cost-of-living squeeze |work=BBC News |url=https://www.bbc.com/news/uk-politics-60848315 |url-status=live |access-date=24 March 2022 |archive-url=https://web.archive.org/web/20220324002010/https://www.bbc.com/news/uk-politics-60848315 |archive-date=24 March 2022}}</ref>

In October 2022, the Scottish Government introduced [[Cost of Living (Tenant Protection) (Scotland) Act 2022|an act]] to freeze rents and establish a moratorium on evictions in Scotland for both the private rented and social sectors.

=== Civil society groups ===
[[File:Protester with placard 'Tory help with cost of living - Champagne £1.60 budget cut.'.jpg|thumb|Protesters in London, February 2022]]
Various campaigns, such as [[Don't Pay UK]], were established to encourage the government to implement further assistance.

The campaigner [[Jack Monroe]] warned that the crisis could be fatal for some of the children of low-income parents, and asked the government to increase benefits in line with inflation.<ref>{{cite news |last=Butler |first=Patrick |date=9 June 2022 |title=Cost of living crisis could be fatal for some UK children, Jack Monroe tells MPs |url=https://www.theguardian.com/business/2022/mar/09/cost-of-living-crisis-fatal-some-uk-children-jack-monroe-food-writer-tells-mps |work=[[The Guardian]] |access-date=13 June 2022 |archive-date=1 July 2022 |archive-url=https://web.archive.org/web/20220701153922/https://www.theguardian.com/business/2022/mar/09/cost-of-living-crisis-fatal-some-uk-children-jack-monroe-food-writer-tells-mps |url-status=live }}</ref> UK civil society continues to respond to the hardship caused by the cost-of-living crisis, such as by running [[Food bank|foodbank]]s, though some foodbank managers report both extra demand but also lower levels of donations, as the crisis means some people who could previously donate can no longer afford to do so.<ref>{{cite news |last=Boneham |first=Isabella |date=28 April 2022 |title=Food banks in UK facing 'shocking' poverty levels and 'critical' demand as cost of living crisis bites |url=https://www.nationalworld.com/news/politics/food-banks-uk-poverty-levels-demand-cost-of-living-crisis-bites-3672190 |website=National World |access-date=12 June 2022 |archive-date=28 April 2022 |archive-url=https://web.archive.org/web/20220428095309/https://www.nationalworld.com/news/politics/food-banks-uk-poverty-levels-demand-cost-of-living-crisis-bites-3672190 |url-status=live}}</ref><ref>{{cite news |title=Plymouth food bank donations squeezed by cost of living |url=https://www.bbc.co.uk/news/uk-england-devon-61787924 |work=[[BBC News]] |date=13 June 2022 |access-date=14 June 2022 |archive-date=13 June 2022 |archive-url=https://web.archive.org/web/20220613231457/https://www.bbc.co.uk/news/uk-england-devon-61787924 |url-status=live }}</ref> On 18 June 2022, thousands of workers marched to Parliament in London to demand further government action for the cost-of-living crisis.<ref>{{cite news |last=Sherman |first=Natalie |date=14 June 2022 |title=Workers take to London's streets amid cost of living crisism |url=https://www.bbc.co.uk/news/uk-england-london-61846871 |work=[[BBC News]] |language=en-GB |access-date=18 June 2022 |archive-date=18 June 2022 |archive-url=https://web.archive.org/web/20220618121256/https://www.bbc.co.uk/news/uk-england-london-61846871 |url-status=live }}</ref>

A campaign called "[[Enough is Enough (campaign)|Enough is Enough]]" was organised by trade union leaders to lobby during the crisis. Its demands include a return to pre-April 2022 energy rates, a pay rise in real terms for public sector workers, a rise in the national minimum wage, a reversal of the National Insurance increase, and a £20 per week increase in [[Universal Credit]] payments. Within a few weeks of its August 2022 launch, almost 450,000 people had joined the movement.<ref>{{cite web |url=https://www.theguardian.com/business/2022/aug/24/enough-is-enough-movement-gathers-pace-with-andy-burnham-latest-backer |title=Enough is Enough movement gathers pace with Andy Burnham latest backer |first=Robert |last=Booth |work=[[The Guardian]] |date=24 August 2022 |access-date=31 August 2022 |archive-date=31 August 2022 |archive-url=https://web.archive.org/web/20220831011443/https://www.theguardian.com/business/2022/aug/24/enough-is-enough-movement-gathers-pace-with-andy-burnham-latest-backer |url-status=live }}</ref> It gained some high profile supporters, including the [[Mayor of Greater Manchester]] [[Andy Burnham]] and US Senator [[Bernie Sanders]].<ref>{{cite news |url=https://www.huffingtonpost.co.uk/entry/what-is-enough-is-enough-campaign-bernie-sanders-mick-lynch_uk_62fdf2bfe4b0c8c57f590984 |title=Andy Burnham Set to Join Ranks of Workers' Campaign, 'Enough is Enough' |first=Kate |last=Nicholson |work=[[Huffington Post]] |date=18 August 2022 |access-date=31 August 2022 |archive-date=31 August 2022 |archive-url=https://web.archive.org/web/20220831065624/https://www.huffingtonpost.co.uk/entry/what-is-enough-is-enough-campaign-bernie-sanders-mick-lynch_uk_62fdf2bfe4b0c8c57f590984 |url-status=live }}</ref>

=== Media response ===
The cost-of-living crisis has been noted by the media,<ref>{{Cite news |last=Jones |first=Owen |date=24 May 2022 |title=Could strikes solve the cost of living crisis for Britain's workers |url=https://www.theguardian.com/commentisfree/2022/may/24/strike-cost-living-crisis-britain-workers-low-pay |work=[[The Guardian]] |language=en-GB |access-date=18 July 2022 |archive-date=18 July 2022 |archive-url=https://web.archive.org/web/20220718204939/https://www.theguardian.com/commentisfree/2022/may/24/strike-cost-living-crisis-britain-workers-low-pay |url-status=live }}</ref> as well as workers' unions, as one of the reasons for industrial action by staff in industries such as the [[2022 United Kingdom railway strikes|railway strikes]],<ref>{{Cite news |last=Moody |first=Kate |date=21 June 2022 |title=UK rail strikes put spotlight on cost of living crisis |url=https://www.france24.com/en/tv-shows/business-daily/20220621-uk-rail-strikes-put-spotlight-on-cost-of-living-crisis |work=[[France24]] |language=en |access-date=18 July 2022 |archive-date=18 July 2022 |archive-url=https://web.archive.org/web/20220718090348/https://www.france24.com/en/tv-shows/business-daily/20220621-uk-rail-strikes-put-spotlight-on-cost-of-living-crisis |url-status=live }}</ref><ref>{{Cite news |last=Pickard-Whitehead |first=Gabrielle |date=22 June 2022 |title=The summer of discontent? Why the cost of living crisis is causing so many strikes |url=https://www.bigissue.com/news/employment/national-strike-summer-of-discontent-cost-of-living-crisis/ |website=[[The Big Issue]] |language=en-GB |access-date=18 July 2022 |archive-date=18 July 2022 |archive-url=https://web.archive.org/web/20220718204939/https://www.bigissue.com/news/employment/national-strike-summer-of-discontent-cost-of-living-crisis/ |url-status=live }}</ref> bus strikes<ref>{{Cite web |last=Saheed |first=Haleema |date=12 July 2022 |title=Arriva bus drivers set to strike again after latest pay offer rejection |url=https://www.thetelegraphandargus.co.uk/news/20274599.arriva-drivers-set-strike-tomorrow/ |website=Bradford Telegraph and Argus |language=en-GB |access-date=18 July 2022 |archive-date=18 July 2022 |archive-url=https://web.archive.org/web/20220718090449/https://www.thetelegraphandargus.co.uk/news/20274599.arriva-drivers-set-strike-tomorrow/ |url-status=live }}</ref><ref>{{Cite web |title=Yorkshire Service Disruption [Updated 13th July 2022] |url=https://www.arrivabus.co.uk/latest-news/yorkshire-service-disruption---13th-july-2022 |website=Arriva Bus |access-date=18 July 2022 |archive-date=12 July 2022 |archive-url=https://web.archive.org/web/20220712210030/https://www.arrivabus.co.uk/latest-news/yorkshire-service-disruption---13th-july-2022 |url-status=live }}</ref> and [[2022 British barristers' industrial action|action]] by [[Legal Aid]] lawyers.<ref>{{Cite news |last=Rielly |first=Bethany |date=31 May 2022 |title=Cost-of-living crisis a threat to legal aid access, lawyers warn |url=https://morningstaronline.co.uk/article/b/cost-of-living-crisis-a-threat-to-legal-aid-access-lawyers-warn |work=[[Morning Star (British newspaper)|Morning Star]] |language=en-GB |access-date=18 July 2022 |archive-date=18 July 2022 |archive-url=https://web.archive.org/web/20220718204939/https://morningstaronline.co.uk/article/b/cost-of-living-crisis-a-threat-to-legal-aid-access-lawyers-warn |url-status=live }}</ref> In September 2022, the [[BBC]] soap opera ''[[Doctors (2000 TV series)|Doctors]]'' began covering the topic in a long-running issue-led storyline featuring [[Scarlett Kiernan]] ([[Kia Pegg]]) and her father struggling to survive.<ref>{{cite news |last1=Hallam |first1=Chris |title=Doctors spoilers: Scarlett refuses help as she struggles with the cost of living crisis |url=https://metro.co.uk/2022/09/22/doctors-spoilers-scarlett-refuses-help-as-she-struggles-with-money-17424781/amp/ |access-date=26 September 2022 |work=[[Metro (British newspaper)|Metro]] |date=22 September 2022 |archive-date=26 September 2022 |archive-url=https://web.archive.org/web/20220926140827/https://metro.co.uk/2022/09/22/doctors-spoilers-scarlett-refuses-help-as-she-struggles-with-money-17424781/amp/ |url-status=live }}</ref> In October 2022, the BBC unveiled it's new brand, ''Tackling It Together'' designed to help consumers navigate the cost-of-living crisis.<ref>{{Cite web |last=Hussey |first=Chloe |date=2022-10-19 |title=BBC launches Tackling It Together brand to help with cost of living - |url=https://mediashotz.co.uk/bbc-launches-tackling-it-together-to-help-with-cost-of-living/ |access-date=2023-07-03 |website=mediashotz.co.uk |language=en-GB}}</ref><ref name=bbc-20221019>{{cite web |url=https://www.bbc.co.uk/mediacentre/2022/tackling-it-together |title=Tackling It Together – BBC launches major new brand to help consumers with cost of living crisis |publisher=BBC |date=19 October 2022 |access-date=6 July 2023}}</ref>

== See also ==
{{div col|colwidth=40em}}
* [[2021–2023 inflation surge]]
* [[Don't Pay UK]]
* [[Economic impact of the Russian invasion of Ukraine]]
* [[Economic impact of the COVID-19 pandemic in the United Kingdom]]
* [[Fuel poverty in the United Kingdom]]
* [[Hunger in the United Kingdom]]
* [[Income in the United Kingdom]]
* [[Retail Price Index]]
* [[United Kingdom government austerity programme]]
* [[Universal basic income in the United Kingdom]]
{{div col end}}

== Notes and references ==
{{Reflist}}

== Further reading ==
* {{cite web |last1=Meyrick |first1=Charlie |date=22 June 2022 |title=Cost of living crisis: what do the latest UK inflation data reveal? |url=https://www.economicsobservatory.com/cost-of-living-crisis-what-do-the-latest-uk-inflation-data-reveal |website=Economics Observatory |language=en |access-date=29 June 2022}}
* {{cite web |last1=Vass |first1=Steven |date=24 June 2022 |title=Shopping: the cost of living crisis is hitting people 'urgently and directly' – retail expert Q&A |url=https://theconversation.com/shopping-the-cost-of-living-crisis-is-hitting-people-urgently-and-directly-retail-expert-qanda-185801 |website=[[The Conversation (website)|The Conversation]] |language=en |access-date=29 June 2022}}
{{COVID-19 pandemic in the United Kingdom, Crown Dependencies and British Overseas Territories}}
{{DEFAULTSORT:United Kingdom cost of living crisis, 2021-present}}
[[Category:2021 in the United Kingdom]]
[[Category:2022 in the United Kingdom]]
[[Category:2023 in the United Kingdom]]
[[Category:2020s in the United Kingdom]]
[[Category:2020s in British politics]]
[[Category:Consequences of Brexit]]
[[Category:Economic crises in Europe]]
[[Category:Economic history of the United Kingdom]]
[[Category:Economic impact of the COVID-19 pandemic]]
[[Category:Inflation in the United Kingdom]]
[[Category:Personal finance]]
[[Category:Poverty in the United Kingdom]]
[[Category:Social history of the United Kingdom]]
[[Category:Impact of the COVID-19 pandemic in the United Kingdom]]
[[Category:Events affected by the Russian invasion of Ukraine]]
[[Category:Boris Johnson]]
[[Category:Liz Truss]]
[[Category:Rishi Sunak]]