The Cost-of-living Reality Check: Who’s Struggling the Most

Two years into the UK’s cost-of-living crisis, many households are still struggling to make ends meet.

Inflation may be easing on paper, but for millions, the financial squeeze continues to shape daily choices, from how they eat to how they work, sleep, and plan.

According to our latest survey of 1,000 UK adults, the burden isn’t evenly spread. Certain groups, especially women, younger generations, and people in the North of England, are bearing the heaviest load.

A clear generational divide

Younger people are at the sharpest end of the crisis:

• Nearly 1 in 3 Gen Z and Millennials say their mental health has been negatively affected by rising costs in the last year.
• 37% of Millennials cite rent or mortgage payments as one of their top cost pressures.
• Even the basics are becoming a challenge: in Northern Ireland, 80% of respondents said food bills are their biggest concern.

Energy bills remain a universal worry, peaking in the East Midlands, where 65.8% of people report it as a top financial pressure.

The gender gap is widening

Our survey shows a clear pattern: women are feeling the financial squeeze more sharply than men. Rising household costs, from energy bills to food shopping, are placing a heavier burden on women, especially in households where they often take on more of the responsibility for day-to-day spending and childcare.

This isn’t just about numbers on a bill. It’s about the emotional weight of managing finances, balancing priorities, and absorbing the stress of rising costs. The gap between how men and women are experiencing this crisis is widening, and it’s leaving many women feeling stretched, anxious, and unsupported.

Regional inequalities in the cost-of-living crisis

Our survey highlights that the cost-of-living crisis is not being felt evenly across the UK. Different regions are experiencing very different pressures, with some areas showing far greater emotional and financial strain than others.

For example, employees are often juggling multiple costs at once, from housing and childcare to the daily cost of travel. Meanwhile, other regions are feeling the impact more deeply on savings, resilience, and everyday confidence.

As Andy Wealthall, COO at Lifetime Financial Management, explains:

“We hear a lot about inflation cooling, but for many people, day-to-day life hasn’t got easier, just more draining. These findings show that the cost-of-living crisis is also a confidence crisis. It’s wearing down people’s resilience, especially in groups that were already more vulnerable.”

What’s at stake: Savings and long-term security

The financial strain isn’t just short-term. With many people unable to save, long-term security is at risk. This has implications not only for individuals but also for employers, who are seeing the effects of financial stress play out in the workplace through reduced productivity, higher anxiety, and disengagement.

How Lifetime is Supporting Financial Wellbeing

At Lifetime, our mission is to make financial wellbeing accessible to everyone, not through complicated jargon, but through clear, practical steps.

The Lifetime Hub and App provide tools, personalised coaching, and Lifetime financial planning services to help individuals and employees take control of their money. Whether it’s managing everyday pressures, exploring personal financial services, or thinking ahead with later life financial planning, our approach is about helping people feel more confident, whatever they earn.

Supporting Individuals and Employees Alike

For individuals, now is the time to take small, manageable steps towards greater confidence, whether that means exploring pension advice near me, using the Lifetime app, or accessing trusted personal financial services.

For HR leaders, embedding the financial wellbeing of employees into workplace strategies is vital. Offering support can reduce stress, improve retention, and create a healthier, more engaged workforce.

Download the sample of our new report, Money & Mindset: A UK Financial Wellbeing Report.

Written by Ione Morton, Marketing Executive at Lifetime