Arab Press

بالشعب و للشعب
Friday, Mar 29, 2024

‘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
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×