Young, Stressed and Stuck at Home How the Cost of Living Crisis Is Reshaping Youth in the UK

For many young people in the UK, 2025 doesn’t feel like the year of fresh starts and freedom, it feels like survival mode. The cost of living crisis is hitting hard, and it’s not just about pricier groceries or rent; it’s reshaping how a whole generation lives, plans, and dreams.

The numbers tell the story:

Inflation rose to 3.6% in the year to June 2025, the highest in 18 months, and is still above the Bank of England’s 2% target (1).
Food prices jumped 4.5% in June compared to a year earlier, with staples like coffee, butter, beef, and chocolate costing more due to high energy and labour costs. (1) (2)
Rents have soared by 6.7% in the past year to an average of £1,344 a month. That’s around £84 more per month than a year ago. (3)

For people on the lowest incomes, the gap between benefits and essential costs is widening. Our research highlights the experiences of young people across Hertfordshire. Whether they’re earning minimum wage, receiving Universal Credit, or living in shared accommodation, all are feeling the effects of the rising cost of living.

18 year old, on minimum wage, and living in a one bedroom flat
18 year old, on universal credit, and living in a shared house
18 year old, on minimum wage, and living in a shared house
18 year old, on universal credit, and living in a supported hostel

How is this impacting young people?

1. Delayed independence

Around 18% of 25 to 34-year olds are still living with their parents, up by over a third in two decades (4). Many can’t afford to move out, as soaring rents keep them at home far longer than planned, marking a “major societal shift.” (5)

2. Rising stress and anxiety
For many young adults, moving out now sparks fear rather than excitement. Economic uncertainty, pandemic aftershocks, and memories of sudden crises make independence feel risky.

3. Fewer rental options
Private renting is increasingly competitive and expensive. Since May 2022, rents have risen so sharply that 1.2 million households now struggle to pay rent. (6) With fewer homes built and landlords facing higher costs, more young people risk being pushed into social housing.(6)

4. Homeownership out of reach
Buying a home feels more like a fantasy than a goal. Prices remain near record highs, and 4 million UK residents believe they’ll never own a property. (7)

5. Squeezed social lives
Housing costs are swallowing up income, leaving less for food, socialising, and small luxuries like coffees or meals out. It’s reshaping how young people connect, date, and build friendships. (1)

What is hyh doing to help?

While we can’t single-handedly change the housing market or lower inflation overnight, there are ways that hyh and our supporters can help young people and ease the pressure:

• Support community food projects

Food banks, community kitchens, and surplus food schemes can help bridge the gap for those struggling with rising grocery costs. hyh provides a hardship fund for young people who are struggling to afford essentials.

• Financial education & budgeting tools

Through the hyh Hub, we offer clear, judgment-free financial guidance, help young people avoid debt traps, and support future planning. Through our outreach services, we act as advocates for our young people, helping them to secure safe and affordable housing in their local area. We also connect them with any external partners or agencies, and offering budgeting and independent living support.

• Mental health support

hyh offers a counselling service to support young people who are using our mediation and outreach services. We also have a list of useful resources, helping young people with their wellbeing, family conflict, communication, local food banks and external mental health support.

The cost of living crisis is reshaping when young people leave home, their mental health, savings, and social connections. They’re not asking for luxury, just the chance to build secure, independent lives without being crushed by rent, bills, and anxiety.

If you’d like to support young people in Hertfordshire by supporting these services...

Contribute to hyh's hardship fund

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Young, Stressed and Stuck at Home How the Cost of Living Crisis Is Reshaping Youth in the UK

How is this impacting young people?

What is hyh doing to help?

References