current
Persistent Cost-of-Living Crisis
Despite resilient average incomes, cost-of-living pressures, particularly housing costs and energy poverty, continue to impact vulnerable households.
Timeframe
near-term
Categories
Impact areas
Detailed Analysis
The cost-of-living crisis continues to pose a significant challenge for many households, especially the most vulnerable. Rising housing costs and energy poverty are exacerbating financial insecurity. While average incomes have been maintained, the rising cost of essential needs is squeezing household budgets, leaving less disposable income for other necessities.
Context Signals
Almost 20% of lower-income households were overburdened by housing costs in 2022
Food insecurity among students remains a concern, with 8% reporting not having eaten due to lack of money in 2022
Rising energy prices and slow wage adjustment contribute to financial strain
Edge
Targeted support for low-income households facing housing and energy cost burdens will be crucial.
Innovative solutions for affordable housing and energy efficiency are needed.
The increasing prevalence of energy poverty could hinder the green transition.
