Wales’ Bevan Foundation warns cost-of-living crisis is ‘far from over’

Families across Wales continue to struggle under the pressure of the cost-of-living crisis, with new findings from the Bevan Foundation revealing that financial hardship is still widespread.

A recent YouGov survey, commissioned by the influential Welsh think-tank, shows that nearly one in seven people in Wales are struggling to afford basic necessities, underscoring the persistent impact of inflation on household budgets.

Joel Davies of the Bevan Foundation cautioned that the crisis is ongoing.

“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,” he said.

The data points to a worrying trend: two years of high inflation has led to widespread financial strain, with more than four in ten people (44%) reporting that financial difficulties have negatively affected their mental health.

Meanwhile, 29% of people said that their physical health had also suffered due to ongoing financial pressures.

Impact on Children and Families

The report highlights that children and families are especially vulnerable to the effects of the crisis.

A significant number of parents with children under 18 report being unable to afford extracurricular activities for their children, with nearly one in five (19%) stating that their child missed out on sports clubs or lessons outside school hours in the three months leading up to September 2024.

Additionally, 13% of parents said that their child missed a school trip during the same period, raising concerns about the long-term impact on children’s health, wellbeing, and educational development.

Rising Debt and Missed Payments

Rising debt is compounding the difficulties for many households.

According to the survey, three in ten people in Wales have borrowed money recently due to financial pressure, and one in seven (15%) report being at least a month behind on household bills.

This situation leaves families even more vulnerable to unexpected expenses, such as essential home repairs or vehicle breakdowns.

Steffan Evans, Head of Policy (Poverty) at the Bevan Foundation, warned that the situation needs urgent attention, despite recent government investment.

“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,” he said.

Gaps in Support

The report highlights significant gaps in support for those most in need. Nearly half (47%) of people receiving Universal Credit reported having to reduce meal sizes or skip meals entirely, more than double the national average of 23%.

These findings reveal a stark reality for Wales’ most vulnerable households, who continue to face extreme sacrifices in the face of limited assistance.

While recent reforms to Universal Credit aimed to improve support, the report notes that they fall short of ensuring recipients can afford basic essentials.

With inflation continuing to impact household budgets and mounting debt placing additional strain, the Bevan Foundation’s report calls for greater action to address the cost-of-living crisis for families in Wales.