Is the cost of living crisis actually getting worse?

It depends on what you measure. Headline inflation has come down from its peak, but prices haven't gone back to where they were. They've just stopped rising as fast. So while things aren't getting more expensive as quickly, everything still costs significantly more than it did two years ago, and wages haven't caught up for most people. The reality for most UK households is that the squeeze is ongoing. Energy bills, food costs, rent, and mortgage payments remain elevated. The 'crisis' hasn't ended, it's just become the new normal, which in some ways is harder to deal with because the urgency and political attention fades even though people are still struggling.

What's the single most impactful thing I can do right now?

Genuinely? Know your numbers. Most people have no idea what their actual monthly fixed costs are. They have a rough guess, and that guess is usually wrong by £200-400. Spend 30 minutes listing every fixed outgoing: rent/mortgage, energy, water, council tax, insurance, phone, broadband, subscriptions, minimum debt payments. Add them up. Subtract from your take-home pay. What's left is your actual spending money. This single exercise changes everything because it replaces anxiety with information. Once you know the real number, you can make decisions. Without it, you're just guessing and hoping, which is why most people feel out of control.

Should I be using a food bank if I'm struggling?

If you need one, absolutely. There is zero shame in using a food bank. They exist precisely for moments like this. The Trussell Trust network has food banks across the UK, and you can usually get a referral through your GP, Jobcentre, Citizens Advice, or local council. Many food banks now don't even require a referral. Beyond food banks, look into community fridges and apps like Olio (free food sharing) and Too Good To Go (discounted surplus meals). Also check if your local council has a Household Support Fund, these distribute grants for food, energy, and essential costs to people in financial difficulty.

How do I talk to my partner about money when we're both stressed?

Money conversations when you're both anxious tend to turn into blame games. The fix is to take emotion out of it by looking at the same set of facts together. Sit down with a clear picture of what's coming in and what's going out (The Life Buddy is designed for exactly this). When you're both looking at real numbers instead of feelings, the conversation shifts from 'you spent too much' to 'we need to find £150 this month, where can it come from?' Schedule a regular money check-in, maybe Sunday evening, 10 minutes. Keep it factual, keep it short, keep it focused on what you can control.

Cost of Living Crisis UK: How to Take Back Control

Let's not pretend. Everything is more expensive. Your energy bill looks like a car payment. A weekly shop costs what a weekend away used to. And your pay rise, if you got one, was swallowed by inflation before it even hit your account.

You can't fix the economy. But you can take back control of the money you do have. And that starts with seeing it clearly.

of UK adults are worried about the cost of living

Source: Office for National Statistics

Why It Feels Worse Than the Numbers Suggest

Politicians love pointing out that inflation is "coming down." But lower inflation doesn't mean lower prices. It means prices are still going up, just slower. Your shopping bill didn't drop. Your rent didn't decrease. The squeeze is real, and it's cumulative.

The psychological toll is massive too. Financial stress affects sleep, relationships, health, and decision-making. When you're constantly worried about money, you make worse financial decisions, not because you're bad with money, but because stress literally impairs your ability to think long-term.

The anxiety tax

When you don't know your numbers, every purchase triggers a micro-anxiety: "Can I afford this? Should I be saving this?" That constant low-level stress is exhausting. Knowing exactly what you have left to spend eliminates it, even if the number is small. Certainty beats hope.

The Three Things You Can Actually Control

You can't control energy prices, food inflation, or interest rates. But you can control three things that make a genuine difference:

Where to Cut Without Making Yourself Miserable

Austerity budgeting doesn't work. Cutting everything enjoyable from your life saves money for about three weeks before you snap and blow £150 on a "treat yourself" binge. Sustainable saving means cutting strategically:

Subscriptions: Cancel everything. Re-subscribe only to things you genuinely miss after two weeks.
Groceries: Switch to own-brand for staples (same factory, different label). Plan meals around what's reduced. Use a list.
Energy: Even small changes help: washing at 30°C, using a slow cooker instead of an oven, switching to LED bulbs, draught-proofing doors.
Transport: Check if a railcard saves money. Look into cycle-to-work schemes. If you drive, compare fuel prices locally.

£0

of food wasted per UK household per month

Source: WRAP

Cost of Living Check

Question 1 of 3

By how much have average UK food prices risen since 2021?

Free Money You Might Be Missing

Before you cut another thing from your budget, make sure you're claiming everything you're entitled to:

Council Tax Reduction: Means-tested. Could save you hundreds per year.
Warm Home Discount: £150 off your electricity bill.
Broadband social tariffs: £10-15/month broadband for benefit recipients.
Household Support Fund: One-off grants from your local council for essential costs.
Pension contributions: If your employer matches, not contributing is literally turning down free money.

10-minute money check

Right now, before you close this tab: check your bank statement for the last three recurring payments you don't use. Cancel them. That's probably £20-40 a month back in your pocket. Takes 10 minutes. Do it now.

How to Stay in Control Without Obsessing

The goal isn't to think about money more. It's to think about it less, because you've set things up so the important stuff happens automatically.

The Life Buddy gives you a live view of what's coming in, what's going out, and what's left. No spreadsheets. No categories to obsess over. Just a clear picture, updated as you go, so you always know where you stand.

The cost of living crisis isn't going away tomorrow. But feeling out of control doesn't have to be part of it. See your money clearly, and the stress drops immediately, even if the numbers don't change.

Cost of Living Crisis: How to Take Back Control of Your Money

Why It Feels Worse Than the Numbers Suggest

The Three Things You Can Actually Control

Where to Cut Without Making Yourself Miserable

Cost of Living Check

Free Money You Might Be Missing

How to Stay in Control Without Obsessing

Frequently Asked Questions

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