Growing numbers of people are feeling psychologically affected by the cost of living crisis according to the latest Inflation Nation report from the Yorkshire Building Society.
According to the report, some 67 per cent of adults are concerned by the impact of the cost of living crisis, with 46 per cent already reporting a deterioration in their mental health as a result.
The situation is set to worsen as the crisis continues, with three quarters of people expecting household running costs to increase – and two in five expecting them to do so by between £101 and £500 in the coming months.
With four out of 10 respondents already dipping into their savings within the last 12 months to cover basic living costs, and a further third (35%) reporting that they expect to need to do so in the future, the Yorkshire Building Society is raising concerns over the need for greater mental health support in the UK.
Stephen White, interim chief executive of the society, says: “Much has been written about the devastating financial impact of the ongoing cost of living crisis on British households, with a number of measures announced by the government in an effort to combat rising fuel and utility costs.
“However, what we have been able to reveal today is the shocking, severe impact the crisis is having on our nation’s mental health – with almost half of all adults already reporting a deterioration in their mental state as a direct result of rising prices and inflation.”
A recent report by the Resolution Foundation, a think tank, has revealed that the ongoing crisis will push an additional 1.3m people below the poverty line.
These findings are corroborated by the Yorkshire Building Society which says almost one in five households have nothing in cash savings and therefore, no easily accessible buffer to absorb further increases to their cost of living.
A further 15 per cent of people have under £500 in savings, placing severe pressure on their own financial resilience given the Inflation Nation report found that of those who had used savings to cover rising living costs in the last 12 months, the average had dipped into their savings by £455.
