The findings come from the fourth Society Watch report, which provides a snapshot of how people’s lives are being affected by the cost-of-living crisis.
Drawing upon new and existing research, including fresh findings from the NatCen Panel, the research explores how the crisis has impacted different groups in society, their spending patterns, mental health and what it might mean for future generations.
The report highlights that the cost-of-living crisis is not affecting everyone equally, with those who 'ran down their financial resilience' during the pandemic now the most exposed to rising prices as people face the second nationwide crisis in three years.
As part of the research, the panel carried out a survey of a of 2,415 adults about the impacts of the cost-of-living crisis in January.
This research identifies low-income households, younger people and Black people are the most likely to be impacted by rising prices.
Child poverty in the UK is already high and is putting many children at risk of food insecurity, which can lead to longer term problems, the report highlights.
Children are more likely to live in households in poverty – almost 30 per cent in 2021/22 – and pensioners are less likely to do so, the report says. Both these groups saw falls in poverty rates in the early 2010s and a rise in the years leading up to the pandemic, according to the report.
The researchers reference HBAI data, which shows that in 2021/22 children living in poverty were more likely to be in food insecure households or households that used a food bank.
The report warns that a poor diet during a child’s early life can hold back participation in school and development, leading to further problems in adult life. Food insecurity in childhood is associated with cognitive impairments (including maths and vocabulary), and also with impaired motor skills development and school readiness.
‘Food insecurity not only directly impacts child development but can indirectly influence it through the home environment,’ the report says. ‘In a household that is in poverty, parents’ time and resources are focused on managing food access and availability, leaving them unable to provide as much support as they might otherwise to facilitate their child’s development – both emotional support, and financial support including for extracurricular activities.’
When children in poverty have reduced food intake this has ‘a multi-generational impact’, with one study finding this can affect at least three generations. Women who were undernourished (in this instance underweight) as a child were found to have more underweight babies.
Richard Brown, director of Society Views and co-author of the Society Watch 2023 report said, ‘So far, most people’s cost-cutting measures have focused on non-essentials, but people are saving less and borrowing more, and the crisis is leading to a substantial minority of people going hungry or without heating. Government support has cushioned the blow to date, but continuing action may be needed to minimise damage to people’s lives and society’s long-term prosperity.’
Mark Franks, director (Welfare) and economist, at the Nuffield Foundation, said, 'This report supports findings from other Nuffield Foundation-funded projects, indicating that the most vulnerable households are bearing the brunt of these challenges. This underscores the self-reinforcing nature of inequality and emphasises the urgent need for comprehensive efforts to curb the widening disparities that are prevalent in UK society in 2023.'
The report was launched at an event supported by the Nuffield Foundation.
- The Price We Pay: the social impact of the cost-of-living crisis is available here