The cost of living crisis has gripped the UK in recent years, affecting households across the country, especially working-class families who find themselves struggling to make ends meet. The price of essential goods and services has skyrocketed, outpacing wage growth and leaving many people with tough financial decisions.
The Rising Cost of Everyday Essentials
One of the most striking examples of inflation’s impact is the rising cost of groceries. MoneyPlus has put together a campaign highlighting the changes alongside some valuable money saving advice which is worth a look. The research found that although some individual price increases may seem small, they add up significantly over time. The Bank of England reported that the cost of a pint of milk was 25p in 1990 and rose to 42p in 2020, a slow increase over 30 years. However, by December 2024, the Office for National Statistics (ONS) indicated that the cost had jumped to 65p – an increase of 23p in just four years. This stark acceleration highlights the growing financial pressure on families when it comes to affording basic food items.
The MoneyPlus research also found that nearly 90% of those surveyed had spent more in 2024 than in 2014. While the average annual salary has increased by approximately 35% over the last decade, household essentials, including groceries, have risen by an average of 46%. This means that families are allocating a larger portion of their income to necessities, leaving less for discretionary spending or savings.
Housing Costs and Debt
Beyond groceries, other essential expenses have also surged. Housing costs have become an even bigger burden for many. The average house price has continued to rise at an alarming rate, making it increasingly difficult for first-time buyers to get onto the property ladder. In addition, mortgage repayments and rental prices have soared, leading to higher levels of household debt.
MoneyPlus found that the average age of first-time buyers has risen significantly as people struggle to save for deposits while also managing the increased cost of living. Furthermore, the cost of unleaded petrol remains a major concern for those who rely on their vehicles for commuting or daily responsibilities, adding another layer of financial strain.
Finding Ways to Stretch Our Money Further in 2025
With these ongoing financial pressures, many UK families have adopted new strategies to stretch their money further. Here are some of the key ways we are trying to stretch our budget further in 2025:
Side Hustles and Extra Income Streams
- Selling on Vinted and eBay – decluttering and selling unused items online to make extra cash helps to give us more spending money to work with.
- Car Boot Sales – A great way to earn a little extra while getting rid of unwanted items.
- Freelancing or Gig Work – From writing and graphic design to pet sitting and tutoring, side jobs can bring in a healthy extra income.
Smart Shopping and Money-Saving Hacks
- Using Cashback Websites and Money-Saving Apps – Websites like TopCashback and Quidco, as well as apps like Honey and Airtime Rewards, help shoppers like me to earn money back on everyday purchases.
- Price Comparison Websites – Regularly comparing prices for insurance, broadband, and energy bills ensures that households get the best deals.
- Switching Suppliers Regularly – Changing utility providers, phone contracts, and even banking services can lead to significant savings.
- Savvy Grocery Shopping – Using supermarket loyalty schemes, discount retailers like Aldi and Lidl (while also not ignoring providers like Ocado who often offer significant savings too but are often overlooked), and bulk buying when possible helps cut down our grocery bills.
How Have You Felt the Pinch?
The last decade has been a challenging one for many UK households, with inflation, wage stagnation, and rising living costs making financial stability harder to achieve. How has the cost of living crisis affected your family? What strategies have you adopted to make your money go further? Share your experiences and tips in the comments below
*Written in collaboration with MoneyPlus