Low earners hit hardest by cost-of-living increases, says ONS

Low earners are bearing the brunt of rising living costs, new figures indicate.

According to the Office for National Statistics (ONS), costs for low-income households went up by 4.1% in the year to June.

That compares with 3.8% for the highest-earning households.

This is the first time that low-income households have faced a higher annual rate of inflation since June 2023.

Inflation jumped slightly to 3.8% in July - the highest level since January 2024 and nearly double the Bank of England’s target of 2%.

Who is being hit hardest by rising costs?

Renters have seen bigger increases in the cost of living than those who own their own home.

People living in private rented accommodation have seen their living costs go up by 4.5%, fuelled by rising rents.

By contrast, homeowners with a mortgage saw a 4% increase in living costs, while costs for those who own their property outright rose by 3.4%.

What to do if you’re struggling

If you’re finding it hard to keep up your day-to-day expenses, then help is available.

Check your benefits

You might be entitled to financial support from the government, so use our benefits calculator to see what help you could get. 

Create a household budget

Keep a close eye on how much money you have coming in and where it’s going.

You’ll then be able to see where you can make savings and free up cash for vital expenses, such as rent, mortgage payments and household bills.

Check our guide on how to create a budget to get started.

Tackle problem debts

If you’re struggling with debt, then get in touch for confidential, practical and impartial debt advice, and we can discuss what options are open to you.