Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

‘What’s my future?’: millennials and Gen-Z grapple with cost of living crisis

‘What’s my future?’: millennials and Gen-Z grapple with cost of living crisis

Majority of UK young people in low-income households going without essentials while others use savings to pay bills

Like many people across the UK, Luke Downham, 26, has found himself living pay day to pay day as the cost of living crisis intensifies.

During the pandemic, he was able to save money and pay off student debt. Relocating to Manchester in 2021, he started a new job as a biomedical scientist for the NHS with the belief that life was improving.

But as inflation hits a 40-year high, Downham’s rent is due to increase by 10% this month. He has since taken out a consolidation loan to pay off rising debts. He said it was difficult to live every month waiting to get paid.

“It’s pretty depressing because I’m just kind of starting my life. I feel a bit taken aback,” said Downham. “I feel like my friends and family are all in a similar situation. This world is not sustainable.”

The trend of Britons in precarious positions has worsened in recent months as the increased cost of living puts a strain on living standards, with the lowest-paid and most vulnerable suffering most.

Luke Downham: ‘I feel like my friends and family are all in a similar situation. This world is not sustainable.’


The Gen Z and millennial generations, confronting inflation for the first time, are also vulnerable to the slump. Nearly half spend their entire monthly income on living costs, according to a recent survey by Deloitte, while two in five have taken on additional work to make ends meet.

A recent report by a leading anti-poverty charity found that young people on low incomes – those in the bottom 40% of household incomes – are disproportionately affected. According to the Joseph Rowntree Foundation (JRF), more than 70% of low-income households with an 18- to 24-year-old were in arrears with at least one household bill, and more than 80% of with an 18- to 34-year-old are going without essentials.

“We may see more young adults having to move home, particularly if you’re falling into things like rent arrears or unable to pay energy bills and so on, which we’re seeing a lot of at the moment – particularly young households not being able to afford the electricity and gas bills,” said Rachelle Earwaker, a senior economist at JRF.

Some individuals the Guardian spoke to said they had dipped into savings to make ends meet, or have changed habits such as walking to work instead of driving to save on rising petrol prices. As rents and energy bills increase, many said they could no longer afford to rent on their own, or save for housing deposits, and have moved in with family or roommates.

The impact can be detrimental to young people’s credit rating and ability to build new skills, education, careers and financial security, said Earwaker. But for Gen Z and millennials, for whom the cost of living has become the leading concern ahead of climate change, the two need to work in tandem, she said.

“The cost of living crisis is exacerbated because we haven’t been focusing on the climate crisis as well,” added Earwaker. Individuals the Guardian spoke to said while they are concerned by climate change, the cost of living is more immediately felt.

For Josh Ryan-Collins, head of finance and macroeconomics at UCL’s Institute for Innovation and Public Purpose, a solution to low income, inflation and the environmental crisis, is to de-carbonise the economy.

“This would be a kind of win, win, win. It would create decent, well-paid jobs, it would help us meet our net zero carbon targets, it would relieve unemployment and low wages in the regions of the country which are suffering most, and it would eventually help us deal with inflation,” said Ryan-Collins.

In a report published this month, the business, energy and industrial strategy committee of MPs said the government support offered for rising energy prices is “no longer sufficient” and that the UK “needs to reduce its dependence on imported gas” to lower energy bills.

When Meredith, 31, left her corporate job as a product manager, she didn’t predict that leaving her “unfulfilling” role would result in her searching for the same position months later as a recession looms.

“I own a home with my boyfriend and our energy bill recently went up to £177 a month. It’s just the two of us but we have what we consider good salaries. We’re scraping by,” she said.

Having once expected not to worry about making it through each month by her early 30s, Meredith can no longer put aside money and regularly taps into savings to cover monthly bills.

“Holidays aren’t really an option, and I wouldn’t even think of having children now,” said Meredith, who relocated to the UK from South Africa in 2014 in search of more opportunities.

“What’s my future? It’s just going to be struggle forever, you know?”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×