Which? is launching a campaign calling on businesses to help consumers grappling with impact of the cost of living crisis.
It comes as new Which? research shows an alarming number of people are struggling with the financial and emotional impact of rising prices.
Two thirds of households made at least one financial adjustment in the past month to cover essential spending – such as cutting back on essentials, selling items or dipping into savings. This is the highest level we have recorded in the past decade, and equates to an estimated 18.2 million households.
See all of our cost of living advice to help you save money on everything from mortgages to mobile phone contracts, and everything in between.
The Which? cost of living campaign calls
The new campaign comes as millions of people report pawning their possessions or skipping meals to make ends meet, or tell of sleepless nights due to financial worries.
Businesses are also facing pressure due to soaring inflation. But there is still a lot they can do to reduce the many stresses consumers face as they navigate the cost of living crisis.
Which?'s campaign identifies a range of specific actions essential businesses can take to support consumers. It includes nine key calls for supermarkets, telecoms firms and energy companies.
Here are the details:
Which? is calling on supermarkets to:
- ensure their pricing is more transparent, making unit pricing much more prominent, legible and consistent – and displaying it for promotional offers – so that people can easily work out what is the best deal.
- ensure a range of budget lines for affordable essential items are available across their stores, and particularly in locations where people most need support.
- use their marketing budgets and promotions to tailor support to those who are struggling – including offers, vouchers and loyalty card benefits focused on the places and households where people are most in need.
See our expert advice on how to spend less at the supermarket.
Which? is calling on telecoms providers to:
- enable consumers to leave their contract without penalty when they increase prices mid-contract, regardless of whether or not these increases can be said to be ‘transparent’.
- ensure that social tariff customers do not incur additional charges when they are signing up, do not have to pay early termination charges (ETCs) to move to a social tariff if they are currently in contract, and are not subject to setup costs.
- increase awareness of the availability of social tariffs, what they offer, and how they differ to commercial tariffs.
See our expert advice on how to switch broadband provider.
Which? is calling on energy companies to:
- take action to make energy bills as clear and easy to understand as possible, empowering customers to know what they are paying and why.
- ensure customers on prepayment meters, who are more likely to be vulnerable and on lower incomes, are able to access government support, and prioritise them in their smart meter roll-outs where appropriate.
- make it as easy as possible for customers to get in touch to seek support when they need it.
See our expert advice revealing 10 ways to save on your energy bills.
Millions cutting back on essentials
Which? research* shows an estimated 12.4 million households have had to cut back on essentials – by taking actions such as buying fewer groceries, medicines and school supplies and reducing their energy, water and telecoms usage – just to make ends meet. This proportion has doubled compared to a year ago: around four in 10 now say they have had to cut back on essentials this month, compared with one in five in September 2021.
The table below shows the full scale of financial adjustments people have already had to make in order to keep up with rising costs, comparing the percentage of people who had made changes to how they spent in September 2021 with September 2022.
| How people are cutting spending | September 2021 | September 2022 |
|---|---|---|
| Spending less on essential household items | 21% | 44% |
| Taken money out of a savings account | 23% | 31% |
| Used an overdraft facility | 10% | 15% |
| Borrowed money from friends and family | 9% | 11% |
| Sold or pawned assets (eg clothing, jewellery) | 5% | 10% |
| Taken out a new credit card, or borrowed more than usual with an existing credit card | 7% | 8% |
| Taken out a short-term loan for essential spending | 3% | 3% |
Source: Which? Consumer Insight Tracker, online poll weighted to be nationally representative, approx 2,000 respondents per wave. Adjustments include: cutting back, dipping into savings, borrowing from friends and family, taking out credit cards or loans, selling items, using an overdraft.
One in 10 households said they had to sell or pawn their possessions to cover essential payments in September 2022, compared with just one in 20 this time last year. Worryingly, one in three households said they have had to take money out of a savings account.
An estimated 2.5 million households missed or defaulted on a vital payment – such as a mortgage, rent, credit card or bill payment – in September 2022. This is a significant jump from the estimated 1.7 million who missed payments in September 2021, demonstrating that many who were coping financially last year are now struggling to make ends meet.
See the full policy report: how businesses can support consumers through the cost of living crisis.
The hidden impact of the cost of living crisis
Which?’s research also lays bare the hidden mental and emotional impact of cost of living pressures, with a quarter of UK consumers saying they'd had trouble sleeping due to worries about paying the bills.
Just over half of people reported feeling anxious when thinking about the rising cost of living, while three in 10 reported feeling overwhelmed, and two in five said they felt powerless.
One person said: 'I worry and have trouble sleeping, especially about the energy prices – I worry that I won't be able to afford to put the heating on.'
The graph below shows the different ways people are experiencing emotional harm as a result of financial pressures.
Rocio Concha, Which? director of Policy and Advocacy, said: 'Our research has found that many households are struggling with the financial and emotional impact of the cost of living crisis – with record numbers having to cut back on essentials just to stay afloat.
'Which? is calling on businesses to do all they can to support their customers through this extraordinary cost of living crisis. While government intervention is necessary, we also believe businesses across essential services can and should do more to help.'
- See our cost of living advice for expert tips on saving money on everything from food to fuel.
*The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.
source https://www.which.co.uk/news/article/which-launches-cost-of-living-campaign-azHEi8p965DF