Iran war forcing low earners to cut back

Fears of a renewed cost-of-living crisis triggered by the Iran war is forcing many people on low incomes to make serious cutbacks.

According to More in Common, more than a fifth of people (22%) who earn less than £20,000 are using less energy at home.

Meanwhile, a similar proportion (21%) have cut back on non-essential spending such as shopping and eating out.

In addition, 13% are trying to cut the cost of their grocery shop by switching to cheaper brands or different supermarkets.

“The fighting in the Middle East might have paused for now,” said Luke Tryl of More in Common.

“But the impact of the war on everyday life in Britain feels very real and very present.”

Government pledges to support families

The government has acknowledged that consumers are “paying more because of the war in Iran”.

However, it stressed it is taking steps to bring down the cost of living, such as:

• taking £150 off energy bills
• supporting households using heating oil
• increasing the national living wage
• freezing rail fares
• freezing prescription charges
• extending the 5p fuel duty cut

“This is not our war and that is why the British government did not join it,” a Treasury spokesperson said.

“The priority is de-escalation and supporting families through this crisis.”

What can I do to keep costs down?

If you’re concerned about rising costs, there are a few steps you can take right now.

Get clarity on your bills

Our free household bills calculator can show you how your monthly costs might change, so you’re not caught off guard.

Plan your budget

Try our simple budget planner so you can keep on top of where your money is going and work out where savings can be made.

Check what support you can get

You might be eligible for financial support from the government, so use our benefits calculator to find out what you can claim.

Speak to your energy supplier

If you’re worried about energy costs or already falling behind with your bills, get in touch with your supplier straight away.

They might be able to offer:

• grants
• payment plans
• advice on managing your account

It could also be worth joining the Priority Services Register for extra support, as well as taking steps to cut your energy usage.