In the News

Poverty and Inequality - Cost of Living Crisis hitting most deprived areas hardest

Graham Watson

27th November 2022

The distributional effects of inflation have never been evenly spread, and this ONS survey suggests that people in the most deprived areas are spending markedly less on food and essentials than the least deprived areas.

This clearly implies that the effects of inflation fall most heavily on the poor, something that we've always been aware of.

According to the ONS:

The main reasons reported by adults for the rise in their cost of living over the past month were an increase in:

  • the price of food shopping (95%)
  • their gas or electricity bills (68%)
  • the price of fuel (55%)

People living in the most deprived fifth of areas in England more frequently reported spending less on food and essentials (58%) compared with those living in the least deprived fifth of areas in England (33%)

In the latest period, people living in the most deprived fifth of areas in England were more likely to be worried about the rising cost of living (84%) than those in least deprived areas (70%).

Find out more here

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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