One in three households turn down the heating to save money Business

One in three households turn down their heating and spend less on their weekly groceries as family budgets are hurt by the cost of living crisis.

Official data has revealed that older generations are feeling the pressure the most, with almost a third of adults unable to cope with an unexpected £850 bill.

Britain is facing the biggest drop in living standards on record with rising energy bills and tax hikes set to add to the pressure next month.

More than 8 in 10 adults suffered an increase in the cost of living in March, compared to 6 in 10 in November, according to the Office for National Statistics.

As inflation hits its highest level in 30 years, half of adults are spending less on non-essentials and 36% are shopping more.

However, others are taking even more drastic measures to deal with the pressure. A third use less gas and electricity at home and 31% reduce their food purchases and essential needs.

The figures underscore the growing crisis facing households as pressure mounts on the Chancellor to unveil more generous support for families.

Sanjay Raja, an economist at Deutsche Bank, said “greater support is likely” after Rishi Sunak spent only a fraction of his fiscal space in the spring statement.

“The measures announced so far fall well short of the cost of living squeeze faced by households, with increases in energy, oil and gas bills alone exceeding the fiscal support of £5 billion,” he said.

Disposable incomes are expected to fall by more than 2% in real terms in 2022-23, the worst year on record for households since records began in the 1950s.

The Bank of England has warned that the energy crisis in 2022 will be worse than any year in the 1970s when the world faced the shock of oil prices.

Data from the ONS revealed that older generations are more likely to report an increase in the cost of living. The statistics body said it could be because more young people live with their parents and largely escape the pain of higher mortgage and energy bills.

Households in the North West and North East of England were most likely unable to afford an unexpected expense of £850.

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This notice was published: 2022-03-30 10:04:11

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