How the cost of living is affecting you and your family

Posted 5th November 2025 by Kenzie Sharp

In the UK, the cost of living has been rising since 2021, though it has decreased since 2023 it is back on the rise again at a slower rate in 2025. Many households are feeling the pressure and are considering cutting back on expenses like life insurance. But here’s why that might not be the best choice. 

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Table from House of Commons Library , and includes monthly data up to July 2025. The House of Commons publishes inflation data each month and the graph included was accurate at the time of publication.    

Over the past few years, managing finances has been tough with inflation constantly on the rise. Although things seem more manageable now, prices are still creeping up, just more slowly.  

Impact on Families 

As living costs rise, so do daily necessities. In July 2025 the inflation rate for food was 4.9%, affecting what families can afford during their weekly grocery trips. To combat inflation, the Bank of England can increase the interest rate, encouraging savings and helping to slow down price hikes.1 

The cost-of-living impacts everyone differently, with common worries centred around food, energy bills, and fuel prices. Parents are searching for ways to manage these rising expenses which we cover in more detail in our blog The Cost of Raising a Child. This highlights how important it is to keep essential protections like life insurance in place. Imagine not being around to support your loved ones; could they manage the rising costs alone? 

Ways to Support Your Children 

It can be very difficult as a parent trying to support your family financially, but the government offer some benefits that will alleviate some of your struggles.  

Here’s how you can benefit: 

Free Childcare: From September 2024, working parents can access 15 hours of free childcare for children as young as nine months. By September 2025, this will increase to 30 hours per week until school starts. There are various schemes depending on if you live in England, Wales, Northern Ireland, or Scotland, so please ensure to check which scheme is right for you here. Tax-free childcare is also available for working parents, which covers up to 20% of childcare fees, you can find out more about this here.  

Child Benefit: Available from birth registration until age 16 (or 20 if in full-time education), providing £26.05 a week for the first child and £17.25 for each additional child.2 

Free School Transport: Available based on distance, safety, and family income. Even if children don’t meet any of the criteria, they might still qualify for free transportation if they’re from low-income families.3 Also, check if you qualify for free school lunches through various support schemes that you can find here. 

There are also many other means of financial aid for raising a child provided by the government, dependent on your circumstance.4 However, if you are just looking for a few ways to cut cost so you can afford the important stuff like life insurance, then we have a few to suggest.  

Tips to reduce household costs:  

Looking to save money for important things like life insurance? Try these tips: 

• Hand-me-downs, second-hand stuff and browsing through online second-hand sites 

• Find free and cheap activities 

• Teach your child about the importance of saving 

• Grocery deals, vouchers and special offers 

• Utilising discount apps 

• Shopping in the sales 

• Sell on things you no longer need or use 

• Borrow things! 

Protect Line is authorised and regulated by the FCA for insurance services, and cannot provide financial advice. The information provided is not intended as financial advice. Should you want advice on saving money please seek independent financial advice. 

Secure Your Family’s Future 

Thinking about life insurance? We’re here to make the process simple and stress-free. Contact us today to get all the facts you need to make the best choice for you and your family. 

References: 

https://commonslibrary.parliament.uk/research-briefings/cbp-10100/  

https://www.profee.com/articles/cost-of-living-in-the-uk-in-2025  

https://commonslibrary.parliament.uk/research-briefings/sn02792/  

https://www.goodto.com/money-news/what-does-inflation-mean  

https://www.bbc.co.uk/news/articles/c17rgd8e9gjo