Topic: Cost of Living

Cost of Living Polling 2026

77% say they are still struggling despite inflation falling to 2.7%. Labour’s economic credibility is at an historic low. 64% feel worse off since July 2024. Track what voters think, feel and blame — and what they want government to do about it.

77%
still struggling financially
64%
worse off since Labour took office
12%
say finances improved under Labour
28%
trust no party on economy

The Lived Cost of Living Crisis — 2026

Despite CPI inflation falling to 2.7% in May 2026 — down from a 41-year high of 11.1% in October 2022 — voters do not feel the financial pressure has eased. 77% of UK adults say they are still struggling financially or have less money than a year ago. The reason is straightforward: falling inflation means prices are still rising, just more slowly. The cumulative price level since 2021 is roughly 25% higher than before the crisis, and wages in many sectors have not kept pace with that compounding increase.

For the Labour government, this creates an acute political problem. Statistical measures show the economy improving — wage growth above inflation, unemployment low, CPI falling — but voter sentiment remains deeply negative. 64% of adults say their household finances are worse now than when Labour took office in July 2024. Only 12% say their finances have improved. The Labour government’s employer National Insurance rise, which increased the cost of employing staff, has compounded the problem: businesses have passed costs on via fewer job vacancies, subdued pay offers, and price increases.

Key cost of living poll findings — 2026

  • 77% say they are struggling financially or have less money than a year ago
  • 64% say finances are worse than when Labour took office (Jul 2024)
  • Only 12% say their financial situation has improved under Labour
  • 68% cite energy bills as a major concern
  • 64% cite food prices as a major concern
  • 71% say their energy bills are unaffordably high
  • 52% report cutting back on heating to save money
  • 62% say the employer NI rise has made them worse off

Sources of Financial Pressure — Detailed Breakdown

Energy bills (gas & electricity) 68%
Food and grocery prices 64%
Mortgage or rent costs 58%
Car running costs (fuel, insurance) 42%
Council tax 39%
Childcare and school costs 34%
Water bills 31%
Mobile and broadband costs 21%

% citing as “a major source of financial pressure on my household”. YouGov/Ipsos composite, May 2026. Multiple responses permitted.

The Employer NI Effect: Polling on Labour’s October 2024 Budget

Labour’s October 2024 Budget raised employer National Insurance from 13.8% to 15%, a decision that polling shows was deeply unpopular. 62% of voters say the employer NI rise has made them worse off, through a combination of reduced pay offers, fewer job vacancies, and higher prices passed on by businesses. Even among Labour’s own 2024 voters, net approval of the overall Budget package is −11 points.

Labour Budget policy Support Oppose
Raise employer National Insurance (13.8%→15%) 24% 62%
Freeze income tax thresholds (fiscal drag) 21% 58%
Cut winter fuel payments for most pensioners 19% 71%
Raise minimum wage to £12.21/hour 74% 11%
Windfall tax on North Sea oil & gas 58% 24%

Source: YouGov, May 2026.

Cost of Living Impact by Demographic

The squeeze is not equal. Private renters have experienced the sharpest combined cost pressure. Households in the lowest income quintile spend a higher share of income on energy and food — the categories that rose fastest between 2021 and 2023.

Group % saying worse off % saying same % saying better off Key driver
Private renters 78% 14% 8% Rent up 22% nationally since 2021 + all other inflation
Lowest income quintile 81% 13% 6% Spend highest share of income on energy & food
Young families (0–5 yr olds) 75% 16% 9% Childcare costs + nappies/baby food inflation
Mortgage holders (variable) 72% 18% 10% Interest rate rises; some now remortgaging at 4–5%
Single parents 83% 12% 5% No second income; benefit cap limits support
Pensioners (not wealthy) 68% 21% 11% Winter fuel cut + fixed pension income
Homeowners (fixed mtg) 48% 32% 20% Insulated from rent and interest rate rises
High income earners 34% 40% 26% More discretionary income to absorb cost rises
All adults 64% 24% 12% Overall average from YouGov tracker

% saying finances are better/worse off than in July 2024. YouGov/Survation composite, May 2026.

Economic Trust by Party

Conservatives 22%
Labour 19%
Reform UK 17%
Lib Dems 8%
Greens 6%
None / DK 28%

Most trusted party on the economy/cost of living. YouGov, May 2026.

What cost of living measures do voters want?

  • Freeze energy bills: 68%
  • Restore winter fuel for all pensioners: 61%
  • Increase minimum wage further: 55%
  • Scrap two-child benefit limit: 54%
  • Introduce rent controls: 43%
  • More deficit reduction / less spending: 24%

YouGov, April 2026. Voters favour direct household support over deficit-reduction as primary economic policy.

Cumulative inflation since 2021

  • Food & drink: +29%
  • Energy (gas & electricity): +68%
  • Private rents: +22%
  • Mortgage costs: +38% (var. rate)
  • Overall CPI: +25%

ONS data. Falling inflation means prices are still rising, just more slowly. Cumulative level remains far above 2021 baseline.

What Voters Want Government to Do: Cost of Living Policy Polling

Proposed policy measure Support Oppose Partisan lean
Freeze energy bills (government-funded price cap) 68% 16% Cross-party; highest with Lab/Green voters
Restore winter fuel allowance for all pensioners 61% 27% Highest with Con and Reform voters (75%+)
Increase the minimum wage beyond £12.21/hr 55% 28% Strong with Labour voters; backed by 44% of Reform
Scrap the two-child benefit limit 54% 31% Green (81%), Labour (67%), Lib Dems (58%)
Introduce rent controls on private landlords 43% 38% Young voters 54%; over-55 homeowners 31%
Windfall tax on energy company profits 71% 15% Broad support; highest with Green (89%) voters
Cut income tax threshold freeze (“fiscal drag”) 49% 31% Con voters 68%; Labour 42%
More deficit reduction to stabilise public finances 24% 51% Reform voters 42%; lowest with Greens (12%)

YouGov, April–May 2026. All adults GB. Windfall tax polled separately in April 2026.

Explore More

Why are voters still struggling despite inflation falling?

Falling inflation means prices are rising more slowly, not falling. The cumulative price level since 2021 is roughly 25% higher than before the crisis — energy is up 68%, food up 29%, private rents up 22%. 77% of adults say they are still struggling financially. The improvement in official statistics has not yet translated into lower prices at the shops or lower bills. Economy polling →

How has Labour’s economic performance polled?

64% of voters say their finances are worse since Labour took office in July 2024, versus only 12% who say they have improved. Labour’s employer NI rise is cited by 62% as having made them worse off. This represents a historically fast collapse of economic credibility for a new government — contrasting sharply with wage growth that has nominally exceeded inflation since mid-2023.

Which party do voters trust most on the economy and cost of living?

No party has a clear lead: Conservatives lead at 22%, Labour at 19%, Reform UK at 17%, with 28% trusting no party. This three-way near-tie — where the governing Labour Party barely leads — is unprecedented and reflects deep cross-party disillusionment on economic management. Full economy trust polling →

What are the biggest financial concerns for UK households in 2026?

Energy bills (68%), food prices (64%), and mortgage/rent costs (58%) are the three biggest drivers of financial pressure. 71% say their energy bills are unaffordably high, and 52% report cutting back on heating. Car running costs (42%) and council tax (39%) are significant secondary concerns. Housing polling →

How does the cost of living crisis affect different demographics?

Private renters (78% worse off) and the lowest income quintile (81% worse off) have been hardest hit. Single parents (83% worse off) are the most financially squeezed demographic group overall. Higher-income homeowners on fixed-rate mortgages have been most insulated (34% worse off, 26% better off). The cost burden has been most severe for those who spend the highest share of income on energy and food — the categories that rose fastest in 2021–2023. Welfare polling →

What cost of living measures do voters most want government to implement?

A windfall tax on energy companies (71%), freezing energy bills via a price guarantee (68%), and restoring the winter fuel allowance for all pensioners (61%) are the top three demands. Scrapping the two-child benefit limit (54%) and introducing rent controls (43%) are the next most popular. Notably, further deficit reduction as the primary response polls at only 24% support — voters want direct household support, not austerity. Economy policy polling →

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