Who Is Struggling Most With the Cost of Living? UK Research
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Last updated: 12 October 2026
The pressure of rising living costs is not spread evenly. Our 2025 survey of 1,000 UK adults found that women, younger generations and people in the North of England are carrying the heaviest load, with rent or mortgage payments, food and energy bills among the pressures they name most often.
Who is struggling most with the cost of living?
Women, Gen Z and Millennials, and households in the North of England report the greatest strain in our research, and for many it is affecting mental health and savings too.
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.
How much are UK households struggling? The headline numbers
These are the key findings from our 2025 survey of 1,000 UK adults, set alongside the latest national figures.
| Finding | Figure | Source |
|---|---|---|
| Gen Z and Millennials whose mental health has been negatively affected by rising costs in the last year | Nearly 1 in 3 | Lifetime survey of 1,000 UK adults, 2025 |
| Millennials citing rent or mortgage payments as a top cost pressure | 37% | Lifetime survey, 2025 |
| Respondents in Northern Ireland saying food bills are their biggest concern | 80% | Lifetime survey, 2025 |
| People in the East Midlands reporting energy bills as a top financial pressure | 65.8% | Lifetime survey, 2025 |
| Adults in Great Britain reporting their cost of living had increased compared with a month earlier | 55% | Office for National Statistics, 5 to 30 August 2026 |
| Adults very or somewhat worried about rising living costs in the past two weeks | 62% | Office for National Statistics, 5 to 30 August 2026 |
The national picture backs this up. According to the Office for National Statistics, consumer prices rose by 3.1% in the 12 months to August 2026.
Which age groups are struggling most?
Younger people are at the sharpest end of the crisis. In our survey, nearly 1 in 3 Gen Z and Millennials said their mental health had been negatively affected by rising costs in the last year.
Housing is a big part of the story: 37% of Millennials cite rent or mortgage payments as one of their top cost pressures, leaving little room to save.
Are women affected more than men?
Yes. 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. It is about the emotional weight of managing finances as well as the bills themselves. The gap is leaving many women feeling stretched, anxious and unsupported.
For employers, our guide to supporting women’s financial wellbeing at work sets out practical steps.
Which parts of the UK are under the most pressure?
The cost of living crisis is not being felt evenly across the UK. In our survey, people in the North of England reported some of the heaviest strain, and the pressure that hurts most differs by region.
- Northern Ireland: 80% of respondents said food bills are their biggest concern.
- East Midlands: energy bills are a universal worry, but they peak here, where 65.8% of people report them as a top financial pressure.
In some areas people are juggling housing, childcare and travel costs at once. In others the impact falls more on savings and confidence.
How is the cost of living affecting mental health?
For many people, money worry has become a wellbeing issue as well as a financial one, most visibly among younger adults. 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.”
Andy Wealthall, COO, Lifetime Financial Management
Our guide to mental health and financial wellbeing at work looks at this link in more detail.
How is the cost of living crisis affecting long term financial planning?
The strain is not just short term. With many people unable to save, long term security is at risk: smaller emergency funds, fewer contributions to savings, and less headroom to plan for later life.
Small steps still count: checking where your pension stands and building even a modest savings buffer. See our pensions page if you would like to talk it through. Remember that the value of pensions and investments can go down as well as up, and you may get back less than you put in.
What does it mean for employers?
Financial stress does not stay at home. Employers are seeing its effects in the workplace through reduced productivity, higher anxiety and disengagement.
Offering support can reduce stress, improve retention and create a healthier, more engaged workforce. Practical options include:
- Making financial education and guidance available to everyone, not just senior staff.
- Signposting free, impartial debt advice.
- Reviewing pay and benefits in light of real living costs.
- Training managers to spot the signs of financial stress, without expecting them to give financial advice.
Lifetime’s financial wellbeing programmes for employers combine coaching, education and the Lifetime financial wellbeing app, so employees can get clear, practical help whatever they earn.
How to get support
If you are struggling, start with a clear picture of your income and outgoings, and speak to anyone you owe money to early rather than late.
- Free, impartial help: MoneyHelper, StepChange and National Debtline all offer free debt advice, and MoneyHelper also covers budgeting and pensions.
- Talk to a coach: Lifetime’s coaches can help you take small, manageable steps. Book a chat with a coach.
About this research
The findings in this article come from Lifetime’s survey of 1,000 UK adults, published in our 2025 report, Money & Mindset: A UK Financial Wellbeing Report. You can read the 2025 Lifetime financial wellbeing survey report. National comparison figures are from the Office for National Statistics.
Frequently asked questions
Who is struggling most with the cost of living in the UK?
Our 2025 survey of 1,000 UK adults points to women, Gen Z and Millennials, and households in the North of England reporting the heaviest pressure. Rent or mortgage payments, food and energy bills are among the costs named most often. Nationally, 55% of adults told the ONS in August 2026 that their living costs had risen in the past month.
Is the cost of living crisis over?
Not for many households. Inflation easing means prices are rising more slowly, not falling. The Office for National Statistics reports that consumer prices rose by 3.1% in the 12 months to August 2026, and 62% of adults said they were worried about rising living costs.
How does the cost of living affect mental health?
Persistent money worry can affect sleep, anxiety, confidence and concentration at work. In our 2025 survey, nearly 1 in 3 Gen Z and Millennials said rising costs had negatively affected their mental health in the last year. If you are struggling, speak to your GP as well as seeking money guidance.
What should I do if I am struggling with the cost of living?
Start with a clear picture of your income and outgoings, check what support you may be entitled to, and contact creditors early. Free, impartial debt advice is available from MoneyHelper, StepChange and National Debtline. A financial coach can help you plan the next few small steps.
What can employers do about cost of living pressure?
Make financial education and guidance available, signpost free debt advice, review pay and benefits in light of real costs, and train managers to recognise the signs of financial stress without being expected to give financial advice. A structured financial wellbeing programme brings these together.
Get the full picture
Download the sample of our report, Money & Mindset: A UK Financial Wellbeing Report. If you are an employer, book a demo to see how Lifetime supports your people. For individuals, book a chat with one of our coaches.
Related reading: how finances are affecting mental health and employee wellbeing.
The value of pensions and investments can go down as well as up. MoneyHelper offers free, impartial money guidance.
