81% of Britons say the government is badly handling the cost of living
The cost of living has been one of the defining political issues of the 2020s, here in the UK and across the world. As we enter the second half of the decade, it shows no sign of disappearing.
A clear majority of Britons (56%) say they have been affected by cost of living pressures in recent times, including four in ten (40%) who say they have not just had to make cuts to their usual spending but expect to have to do so again in the future. A further fifth of Britons (21%) say they have been able to maintain their usual levels of spending so far but anticipate having to make cuts soon.
Just one in five Britons (19%) currently say they have been able to maintain their usual levels of spending and expect to be able to continue to do so.
Cost of living pressures are bearing down on women more than men, with six in ten women (60%) saying they have already had to make cuts, compared to 51% of men.
In all, just a third of Britons (34%) currently describe themselves as at least relatively financially comfortable. Four in ten Britons (42%) instead say they are able to cover the essentials, but have little spare change to pay for luxuries, while 22% of the public report often struggling to make ends meet or even being unable to afford their essential costs.
Key to why so many are feeling the pinch are the lingering effects of inflation. Eight in ten Britons (82%) say that prices in shops are rising faster than their income, relative to just 10% who feel their income is keeping pace with prices and just 2% who believe it is their income that is rising fastest.
Energy prices have been another sticking point over the last few years, with four in ten Britons (39%) saying they have at least occasionally struggled to afford their energy bills, including one in six (16%) who say this has been true most of the time.
Such cost of living pressures are likely to get even harder with the rise in the energy price cap from 1 April, which looks set to take some Britons by surprise: 19% say they were not aware of the looming increase in the energy price cap, rising to 51% among 18-24 year olds.
How do Britons think the government is managing the cost of living?
Eight in ten Britons (81%) now say the government is managing the cost of living badly, up from 74% last November. This is also the highest number saying so since August 2023 and roughly the same as the 82% who said the government was handling the cost of living badly after Liz Truss’s mini-budget in September 2022.
Just one in eight (12%) believe the government has handled the matter well, from 15% in November. This leaves a net score of -69 for the Labour government on the issue, a whole ten points lower than the -59 net score for the last Conservative government when they lost the election last July.
Even among Labour voters, there is little feeling the government is doing a good job, with just 22% believing they have handled cost of living issues well, against two-thirds (67%) who see them as having done badly on the matter.
Most Britons expect the UK to be in a recession this time next year
The British public’s negativity extends beyond the current cost of living, with a majority of Britons (53%) expecting that the UK economy will be in a depression or recession this time next year. This is the highest level since February 2023 and double the 26% who held a negative outlook last July, in the aftermath of Labour’s landslide election win.
By comparison, just a quarter of Britons (27%) expect the UK economy to remain stable over the next twelve months, while just 3% anticipate things will be growing or even booming this time next year, noticeably lower than the 11% who expected things to get better last July.
Anticipation of a recession is highest among Reform UK voters (78%) and Conservatives (69%), with Lib Dem voters split 41% to 41% and Labour voters divided 37% to 37% over whether the economy will be in a recession in a year’s time or be stable.
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Photo: Getty
