UK cost of living crisis: What’s really happening and who’s affected

When people talk about the UK cost of living crisis, a sustained period where essential expenses like food, energy, and housing outpace income growth, leaving millions unable to afford basic needs. It’s not just inflation—it’s a collapse in real wages, a broken housing system, and a health service under siege. This isn’t a temporary spike. It’s the result of years of underinvestment, stagnant pay, and policies that ignored how ordinary people live.

The living wage in London, £13.15 an hour in 2025—is what you need just to get by, not thrive. But nearly half of workers still earn less. Meanwhile, the housing shortage UK, the root cause of homelessness and rent inflation—has worsened as social homes vanish and private landlords raise prices faster than wages can climb. People aren’t choosing to live in cars or sleep on sofas. They’re forced into it. And when you can’t afford heat, you skip meals. When you can’t afford medicine, you wait until you’re desperate. That’s why the NHS crisis, with record waiting lists, staff burnout, and clinics shutting down—isn’t just a health issue. It’s a direct consequence of the cost of living crisis. People delay care because they can’t take time off work. Or because they can’t afford transport to the hospital.

It’s not just London. It’s every town where the minimum wage hasn’t moved in years, where energy bills doubled overnight, and where food banks went from emergency help to permanent fixtures. The inflation UK, the rise in prices for essentials like bread, bus fares, and diapers—hasn’t been matched by pay raises. Instead, benefits were cut, and the safety net got thinner. You can’t fix a crisis by telling people to work harder when they’re already working two jobs and still falling behind.

What you’ll find here aren’t just headlines. These are stories from people paying for groceries with credit cards, nurses skipping lunch to cover shifts, families choosing between heating and medicine. They’re data on why the crisis isn’t fading. And they’re the quiet, daily struggles that politicians rarely mention—but that define life in Britain right now.