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The grim polls that lay bare the impact of the cost-of-living crisis

Britain's Chancellor of the Exchequer Rishi Sunak reacts as he leaves the 11 Downing Street, in London, on March 23, 2022. - Rishi Sunak will announce budget updates before parliament at about 1245 GMT, on March 23, 2022. (Photo by Tolga Akmen / AFP) (Photo by TOLGA AKMEN/AFP via Getty Images)
Stark new polling exclusive to Yahoo News UK has revealed the scale of the cost-of-living crisis. (Getty Images)

Stark new polling carried out by Yahoo News UK and Savanta ComRes has revealed the impact the cost-of-living crisis is having on the British people.

Food and energy are among the everyday essentials soaring in price as inflation rockets, with the Office for Budget Responsibility (OBR) predicting households are facing the biggest fall in living standards on record.

The latest data shows that rising prices are already having an affect on people's wellbeing.

Some 81% Brits are worried about their current financial situation, with nearly a third (30%) reporting they are very worried.

Women are more likely to be concerned about the cost-of-living crisis than men at 84% versus 79% – with Brits aged 35-64 expressing the most concern about the crisis at 87%.

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The vast majority of Brits are worried about the cost of living. (Savanta ComRes/Yahoo News UK)

Household bills are increasing across the country. Last week, council tax rose across England, with the average band D property hit with a £63 increase in their annual bill taking it to £1,966 – a hike of 3.5%.

It comes as the energy price cap increased by 54% on 1 April, adding an extra £693 to the average household's annual energy bill.

Polling on the issue of rising household bills reveals that 36% of Brits cannot afford or are struggling to pay them, rising to 40% among 35-65 year olds.

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More than a third of peopel are struggling to pay their energy bills. (Savanta ComRes/Yahoo News UK)

The research also suggests that the public think the crisis is set to deteriorate further.

Half of Brits say they think their financial situation will get worse in the next six months, with 16% saying it would be much worse.

Over-65s are the most likely to say their finances are set to get worse at 59%.

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Half of Brits expect their financial situation to get worse. (Savanta ComRes/Yahoo News UK)

The polling comes after inflation hit 6.4% in the 12 months to February 2022, a 30-year high, driving up the cost of essentials like food and clothing.

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Inflation is at its highest level for 30 years. (ONS CPI index)

In response to the polling Karl Handscomb, senior economist at the Resolution Foundation, told Yahoo News UK the country had "stepped out of a global pandemic and straight into a cost-of-living crisis".

“The chancellor’s decision not to target support at those hardest hit by rising prices in his recent Spring Statement will leave low-and-middle income households painfully exposed, with 1.3 million more people, including half a million children, set to fall below the poverty line this coming year," said Handscomb.

“While there are no easy ways to protect people from rising bills, more immediate support for the poorest households is needed, as well as a clear, long-term strategy for uprating benefits more responsively, improving home insulation and reducing the UK’s dependency on global gas price volatility.”

Read more: Petrol stations failing to fully pass on Rishi Sunak's 5p fuel duty cut

A growing number of experts have called on the chancellor to increase benefits in line with current inflation to help the most vulnerable households, which isn't due to happen until next year.

However, the Treasury ruled out such a move in March which is tantamount to an £11bn real terms cut.

Instead, the chancellor has stood by the announcements he made in the Spring Statement to help struggling Brits, including:

  • 5p off fuel duty for 12 months

  • Pushing forward with the 10% hike to National Insurance contribution (NICs) but increasing the threshold by £3,000

  • Knocking 1p off income tax by 2024

  • An extra £500m for the Household Support Fund.

Earlier this year, Sunak also unveiled an Energy Rebate Scheme worth £350 to help households struggling with their energy bills.

LONDON, ENGLAND - FEBRUARY 03: Britain's Chancellor of the Exchequer Rishi Sunak hosts a press conference in the Downing Street Briefing Room on February 3, 2022 in London, England. As the energy regulator, OFGEM, announced a domestic energy price cap rise of 54 percent earlier today, the Chancellor of the Exchequer announced the Energy Bill Rebate to help ease the cost of living burden. Council tax rebates of £150 for 80% of households and £200 off energy bills in October form £9.1 billion treasury package of support.  (Photo by Justin Tallis - WPA Pool/Getty Images)
The Resolution Foundation think tank warned Rishi Sunak in March that absolute poverty is set to rise by around 1.3 million in 2022-2023 - including 500,000 children - without extra help. (Getty Images)

The policy is compromising of a £150 council tax rebate for bands A-D; and a £200 discount on energy bills to be paid back over five years.

However, the £9bn scheme has been widely criticised for being partially repayable and confusing - with the OBR saying half "will be clawed back over the subsequent years. Furthermore, at least a million households won’t receive the £200 but will still be liable to pay it.

On Wednesday, the prime minister admitted to Sky News that struggling Brits will have to choose between clothes, food, and heating when asked about the issue.

"People obviously are going to face choices that they are going to have to make," said Boris Johnson.

Read more: Petrol stations failing to fully pass on Rishi Sunak's 5p fuel duty cut

"We in the government will do everything that we can to help."

Responding to the polling, a Treasury spokesperson said: “We recognise people are facing pressures with the cost of living – which is why the government is providing support worth £22bn across the next financial year."

They added: “We’ll continue to monitor how global events impact on bills here at home and do what we can to support people through these challenging times.”

Watch: Cost of living: From stockpiling food to cutting back on laundry - how rising costs are impacting children