Separate research from charity Christians Against Poverty found about 35% of adults in the UK worry about their finances every day.
As the VAT announcement will save households about £45 a year, “the fear of juggling budgets that simply don’t balance remains”, says Juliette Flachm, Acting Head of Policy and Public Affair.
“With incomes failing to keep pace with the high cost of essentials, many of the people we see are left facing impossible decisions.”
JRF’s chief economist Chris Belfield said: “Andy Burnham starts his time as prime minister at a time when the cost-of-living crisis has never been more widely felt.
“Government policy can work. We need greater intervention to control rental prices, make energy affordable and improve the adequacy of Universal Credit so everyone can afford the essentials.”
A government spokesperson said: “We’re determined to turn the tide on poverty after years of rising hardship. Our recent statistics show that effort is beginning to make a difference – household incomes have risen 5% in real terms, food bank usage has fallen, and food insecurity is down.
“Work is underway to tackle the cost-of-living pressures through measures such as increasing the National Minimum Wage, removing the two-child limit, implementing the first ever sustained above inflation increase to Universal Credit, and launching the £1bn Crisis and Resilience Fund which will act as a genuine safety net for those in financial crisis.”
The figures come from the Joseph Rowntree Foundation’s poverty tracker, which surveys about 4,000 people from households in the lowest 40% of incomes.
The charity noted that food inflation averaged 4.1% between May 2025 and May 2026, compared to 3.6% for overall inflation, which has greater impact on lower-income households because they spend more of their income on food.
But it also noted that the number of poorer households that couldn’t afford to keep their homes warm has fallen by half a million in two years, after the government reduced average household energy bills by about £150 a year through changes to green levies and support like the warm homes discount.
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