Wed, 21 May 2025

Wed, 21 May 2025 No money left at the end of the month and smaller food shops: How inflation rise affects you

Inflation has risen by more than expected on higher water, energy and food bills grew - how are ordinary people making their income stretch?
UK inflation has surged by 3.5% over the past year, with household bills being the main driver behind the increase. The cost of living crisis is hitting many Britons hard, with those on low incomes struggling to make ends meet. For some people, like Tracy McGuigan-Haigh, a 47-year-old mother-of-one who works in retail, the rising prices are making it impossible to budget. She earns £1,200 a month and receives Universal Credit payments of around £400 but finds that her money is barely stretching far enough. "I feel like I'm constantly juggling bills and trying to prioritize what's most important," she said. "The supermarket shop has become increasingly expensive, and even with careful planning, it feels like we're going backwards." Others are facing similar struggles. Single father Ieuan Hood, 30, who works full-time at a call centre, receives Universal Credit on top of his wage but finds that the rise in bills is wiping out any increases to his benefit payments. "My child care bill alone costs £1,700 per month," he explained. "By the time I've paid all my other expenses, there are some months when I'm left with nothing." Retiree Peter Murphy, 80, from Stockport, is also feeling the pinch. Despite having a combined income of around £25,000 per year from his pensions, he and his wife have had to cut back on holidays due to rising costs. "The problem is that my pension isn't increasing at the same rate as my bills," he said. "Inflation leaves me poorer every year."
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