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Cost of living crisis

A cost of living crisis occurs when people’s wages and welfare support do not keep pace with rising costs for essentials such as food, energy, fuel and housing. This results in more households finding their finances not stretching as far as before. When people and families have money worries, it can negatively affect their mental and physical health. Businesses and public services can also find their budgets not going as far as they used to, which can affect their ability to operate as usual.  If you or someone you know is struggling with the cost of living, support and advice is available from Welsh Government.

Why is it important to health, well-being and reducing inequalities?

Not being able to afford essentials directly harms health and well-being. Increased food insecurity, difficulties paying bills, poor housing conditions and restricted access to transport all contribute to rising stress, worsening mental health, and increased physical health risks. Importantly, the crisis is widening existing health inequalities. People living in the most deprived communities already experience shorter lives and spend more years in poor health, and rising living costs further widen this gap.

Children are hit particularly hard. When families are unable to keep their homes warm or afford enough healthy food, it increases children’s risks of respiratory conditions, poor nutrition, difficulty concentrating at school, and greater shame and stigma linked to hygiene poverty. Impacts on children’s health in their early years can shape their lifelong health, wellbeing, education, and life chances, and potentially reinforce inequalities across future generations.

What is Public Health Wales doing to address the cost of living crisis for the population in Wales?

Public Health Wales is leading work to understand, monitor, and respond to the health impacts of the cost of living crisis. Its activities include:

  • Publishing evidence and analysis to help Welsh Government and partners understand how rising costs affect health, wellbeing and inequalities across different population groups, including children.
  • Highlighting the need for system-wide action, calling on public bodies, the third sector and local partners to work together to reduce harm now and tackle long-term drivers of inequalities.
  • Developing frameworks for action that outline what a public health response should include: mitigating immediate harms while addressing underlying causes of poverty.
  • Facilitating national collaboration to share best practice, strengthen local responses, and improve access to support services.
  • Providing updated intelligence to identify ongoing health concerns and reinforce the need for sustained interventions.

Together, this work supports decision-makers across Wales to protect health, prevent inequalities from worsening, and improve long-term outcomes.

What action should be taken at a national, regional and local level to address the cost of living crisis for the population in Wales?

Responding effectively to the cost-of-living crisis in Wales requires action that works immediately, builds over time, and tackles deeper inequalities. In the short term, national government and local services would need to focus on helping people afford the essentials, especially food, energy and safe housing, and ensuring that families know what support is available. Rapid measures that protect children from cold homes, food insecurity and hygiene poverty are particularly important, as these pressures have some of the most serious and long-lasting effects on their health.

Wales also needs strong medium-term action to stabilise household finances and strengthen the services people rely on. This includes expanding income maximisation and debt advice programmes, improving the coordination of support across local authorities, health boards and community organisations, and designing cross government policies that address the everyday costs facing families, from transport and childcare to food and hygiene. Regular monitoring of the crisis is essential so that support can adapt as needs change.

Over the longer term, Wales will only be able to reduce the health harms of cost-of-living crises by tackling its root causes: low incomes, poor-quality housing, and the structural inequalities that leave some communities more exposed than others. Investing in warm, energy efficient homes, fair work, good local services, and healthier environments will help create a more resilient and equal Wales. This long term vision builds on a public health approach that protects people now while preventing the drivers of inequality from continuing into the next generation.