Living on a Tightrope: How Britain’s Bank of Living Is Balancing the High Cost of Life
According to a fresh KIS Finance scan, a 57‑percent wave of Britons is already fighting the sting of a rising cost of living — or expecting to feel that sting in the very near future.
With inflation now at 5.5 % – the highest in almost 30 years – and the ongoing Russian‑Ukraine drama tightening its grip on prices, our wallets are feeling the pressure. Add skyrocketing petrol, heating bills and the looming threat of cyber‑attacks, and the UK’s budget blues could worsen.
Crunchy Numbers That Don’t Read Like a Spreadsheet
- 27% are already saying “my money is running out.”
- 30% anticipate future financial woes as prices keep climbing.
- 35.5% of 18‑24‑year‑olds are already drowning in debt.
- 36% of those over 55 worry that the storm will hit them soon.
- In the South East, 30% are hit the hardest.
- 22% of 18‑34‑year‑olds have had to take a second job since the pandemic.
Why We’re All Sweating Over the Numbers
Inflation’s real‑world impact means households are seeing more than just higher grocery prices. Energy bills for heating and electricity are rising, and a global gas supply squeeze could push them even higher. The average bill might hit nearly £2 000 p.a. after the government’s price cap lift, and the war in Ukraine might amplify that figure.
Petrol prices hit an all‑time peak at £1.49 p/litre and are expected to creep up towards £1.50 in the near‑future. Russia’s role as a major oil exporter is a factor that could keep those numbers high.
More Than a Quarter Already Feel the Stretch
With real wages projected to fall below 2008‑level wages by 2026, many are left scrambling. While a dash of inflation is healthy for the economy, the current pace is double the Bank of England’s target. It’s all a drag on folks trying to keep a roof over their heads.
Bank of England’s interest‑rate hikes – a new 0.5% bump in February – add to the cost of mortgages and loans. The Bank hints that more hikes could be coming, further weighing on families.
Harder Times Means More Homelessness
Crisis charity data warns that the cost‑of‑living squeeze could push homelessness up by up to a third compared with pre‑pandemic levels. Eviction rates in private rentals could grow even faster, hit by 79% in the coming months.
Wages: Stagnation, Not Disruption
Only 30% of respondents saw wages rise since before the pandemic. The rest saw salaries grind to a halt or even fall — a heartbreaking revelation that defies the usual boost from inflation.
Youngsters on the Frontlines
More than 35% of 18‑24‑year‑olds say they’re already struggling. With many in hit‑rate sectors like hospitality and retail having lost hours or salaries, these young people find it tough to save a deposit for a house.
About a quarter of 18‑34‑year‑olds have had to pick up an extra job. Some are doing this as a safety net for their primary job; others find themselves juggling multiple gigs, which can take a toll on health and happiness.
Older Brains and the Rising Fear
36% of those over 55 worry that finances will badly suffer soon. Even those with savings and a retirement plan might now have to reevaluate if they can clock in those finances.
Key Takeaway from KIS Finance’s Chief
“Where the cost‑of‑living crisis is already eating away at every budget, the geopolitical mess with Ukraine is set to deepen the crisis. Higher essential costs and rising interest rates will stretch households to the brink,” says Holly Andrews, Managing Director of KIS Finance.
She adds, “With the housing market a high‑price minefield, rents already at record highs, and borrowing costs climbing, buyers chasing the dream of homeownership find the path even more turbulent. All these uncertainties suggest no quick fix for the UK’s housing market.”
That’s the headline snapshot: the UK’s money battlefield keeps tightening and the houses, ricks and pensions all stand to feel the blow.
