Cost of living crisis: what research says about the potential psychological impact

Over two thirds – 69% – of low-income private renters in England will be unable to eat and heat their homes at least one day per week because of rising living costs, the UK charity Crisis recently warned.

The poorest 10% of households spend up to three times more of their family budget on food and energy bills as compared to the wealthiest 10%, according to the Resolution Foundation, an independent UK think tank. The Institute for Fiscal Studies estimates that inflation rates for these poorest families could reach over 10% in 2022.

This has obvious practical implications for people’s daily lives. There is a growing body of evidence that suggests that austerity policies are at least partially responsible for life expectancy stalling in England and Wales. But as my research into social inequality and mental distress shows, the psychological impact is just as profound.