Cost of living crisis taking a terrible toll on people in Wales warns think tank

Wales’ most influential think-tank, the Bevan Foundation, warns that the cost-of-living crisis continuing and taking a terrible toll

New insights gathered by YouGov on behalf of the Bevan Foundation have revealed that families across Wales are continuing to struggle to make ends meet, with around one in seven (15 per cent) sometimes, often or always struggling to afford the essentials. With the latest data showing no improvement in the proportion of people that are able to afford the essentials, it is clear that the cost-of-living crisis is still being deeply felt in communities across Wales.

Speaking on behalf of the Bevan Foundation, Joel Davies said:

“The cost-of-living crisis is far from over. People are struggling to afford heating, food, and other essentials like clothing and travel. Any talk of the cost-of-living crisis being in the past simply doesn’t reflect the reality on the ground for many.”

Two years of high inflation is taking a terrible toll on people’s wellbeing.

More than four in ten people in Wales (44 per cent) reported their mental health had been negatively affected by their financial position, whilst nearly three in ten (29 per cent) reported that their physical health had been negatively affected over the same period.

Children and families are bearing the brunt.

A significant minority of families with children under 18 report that they can’t afford activities for their children. 19 per cent of parents reported that their child missed out on joining a sports club or sports lessons outside of school hours in the three months to September 2024, whilst 13 per cent said that their children missed out on a school trip. This risks affecting both children’s health and wellbeing, and their educational development, affecting the opportunities in adulthood.

People are struggling with debt.

Three in ten people (30 per cent) in Wales have had to borrow recently as a result of financial pressure, and around one in seven (15 per cent) are in arrears of at least one month on a household bill. This adding extra pressure on household finances and giving people less wiggle room to manage at times of crisis like when a boiler brakes or a car fails an MOT.

Steffan Evans, Head of Policy (Poverty) at the Bevan Foundation, said:

“The cost-of-living crisis is hitting hard.  Last week the Chancellor rightly increased investment in public services. But without getting to grips with the hardship facing too many families the Chancellor’s ambitions will be undermined. Ensuring that all people in Wales are able to afford the essentials is of benefit to everyone.”

Concerningly, the people most likely to report that they struggle to afford the essentials are least likely to get help with their living costs. Almost half of people on Universal Credit (47 per cent) cut down on the size of meals or skipped meals entirely in the three months to September 2024, twice the national average of 23 per cent. The Chancellor’s reforms to Universal Credit stopped short of guaranteeing that people have enough money to afford all essentials.