Arab Press

بالشعب و للشعب
Sunday, Jun 01, 2025

‘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?”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×