Introduction from the panel chairs

We are volunteers who serve as independent chairs of citizens’ panels across the UK that make up the Citizens’ Forum. This forum has around 4,000 members. Our role is to make sure everyone who takes part in the panel meetings has their voice heard.

The cost-of-living squeeze continues to affect many across the UK, and this report summarises the key themes from our conversations with these panels. These were held both in-person at venues across the UK and as virtual events.

It also includes summaries from the discussions the Bank had with third-sector organisations and the people they support through a programme of Community Forum events, as well as discussions with younger people aged 16–19. The latter are pilots of a new youth engagement programme.

This report covers the period from March 2023 to February 2024. Over the year, the people we spoke to shared their views and experiences about the challenges associated with the continued rise in the cost of living and the impact it has had on them, their households, and their communities. As many of us are deeply involved in our local communities, many of these issues were familiar to us, but hearing these testimonies firsthand still made quite an impact.

The Bank uses the information it gathers at these events to track how public sentiment changes over time. This sits alongside other key economic indicators to provide a full picture in a timely way.

In this report, you will see how the information gathered at these events is used to inform important policy decisions that the Bank makes.

We thank everyone who has participated in outreach events and shared their views and experiences so openly with us over the past year.

We look forward to hearing from and meeting more of you soon.

UK outreach events: March 2023 to February 2024

The images below illustrate where the Bank hosted events between 2023 and 2024, and includes the names of the senior Bank officials in attendance.

Summary of discussion themes

Participants at our citizens’ panels highlighted the multiple complex challenges individuals and households are facing due to continued rising living costs. We have heard from people in different regions, demographics, and socioeconomic groups across the UK. This year we aimed to reach more underrepresented groups by co-delivering outreach events with our education team in areas of high socioeconomic deprivation. Using the Index of Multiple Deprivation, Social Mobility Index (England only), Free School Meal eligibility and school attainment data (England only) we targeted the following areas for 2023:

• South East Wales (Newport).
• Norfolk (Norwich and Great Yarmouth).
• Leeds City Region (Leeds).

From March 2023 to February 2024, we held 12 in-person panel events in and three UK-wide virtual events.

The main themes that emerged from citizens’ panels this year were:

• Persistently high food and energy prices continue to cause financial strain.
• Significant increase in rents and higher mortgage repayments cause financial pressures and housing insecurity.
• Disproportionate effects of rising prices create widespread concern about a generational and economic divide, affecting younger people and those with low incomes, raising the prospects of growing inequality and adverse social issues.
• Concerns around continued access to cash and the ability to use it, with an emphasis on the importance of choice in payments and a need for financial education.

Food price inflation was raised at all our events as a major challenge. Many people felt they had taken all mitigating measures that they could to lower costs. Some people were buying less of what they needed, while others, including people in work, were using foodbanks. Food prices and other essentials, such as baby formula and nappies, were a particular challenge for those on low and fixed incomes. Even the more comfortably off felt that food price inflation was at unacceptable levels. Some were sceptical about its causes, and questioned whether prices would ever return to previous levels.

Energy prices also featured as a concern throughout the year. Many had faced the challenge of paying high bills two years in a row, as savings dwindled along with their financial resilience. High standing charges (costs paid regardless of the amount of energy used) were often seen as artificially high and unfair since consumers were unable to control them. This left some participants with a sense of helplessness and injustice. People in older, less energy efficient properties also raised concerns about their inability to lower their bills.

Housing costs emerged as a significant issue in the spring and summer. Increased interest rates affected renters and mortgage holders, particularly when contracts were up for renewal. Renters told us they faced steep price rises in all areas of the UK. In Newport, the problem was particularly challenging with some families living in temporary accommodation in budget hotels without basic cooking facilities. We heard from homeowners who had seen their mortgage repayments rise by hundreds of pounds. Some people were struggling to afford the repayments. This had forced some to move home and even relocate to a lower-cost area. There was a concern about the uncertainty of how long interest rates would remain high, and this affected people’s decisions about whether to opt for a new fixed-rate deal. Participants who were still on a fixed-rate deal were worried about what costs they would face when those deals ended. People who had paid off their mortgage felt lucky and empathised with the issues that younger people faced in the housing market. Participants discussed the need for more affordable housing and social housing.

Many noted a growing economic and generational divide. We heard about the disproportionate impact of high prices for essentials on people on fixed and low incomes, including young people. There was empathy from participants across age groups for those most affected by these issues and concern about the long-term economic, social, and mental health implications. Housing was an issue that was discussed in most panels, not just about the short-term rise in rent and mortgage costs, but the challenges with saving for a deposit and the high-income levels needed to obtain a mortgage, given the rise in house prices in recent decades.

Participants voiced uncertainty about the future of the UK economy, citing the compounded effects of Brexit, the Covid pandemic, and current inflationary pressures. The perceived slow pass-through rate of interest rises to savers and scepticism about the effectiveness of Bank Rate changes in bringing down inflation were prevalent. Many participants felt that the inflation they experienced, particularly in food and energy, was higher than the official data suggested. The fact that inflation was high even for the price of day-to-day essentials was a real concern given people had only a limited ability to control these costs There was significant concern at the rising levels of interest rates during the first half of the period covered by this report. Towards the end of the period there were growing calls for Bank Rate to be cut as official inflation rates began to ease back.

At our outreach events we also asked participants about their attitudes towards, and experiences of, different forms of payments. For example, we asked about their usage of cash compared to cards or other digital payments. We also asked what they thought payment choices might look like in the future. And we asked about their views on plans to develop a digital form of cash known as the digital pound. Some of the key messages that emerged from these discussions included:

There was strong support for maintaining access to cash and the ability to spend cash in stores, to support choice in payment options and to help people to budget.

There were concerns about financial exclusion in a digitalised world. This was a particular issue for people that relied on face-to-face financial services and were not comfortable or confident managing their money through digital channels.

In the context of new and emerging payment options, participants told us about the importance of financial education to support their choices and to help them to avoid fraud and scams.

Some participants questioned the need for the Bank of England to establish a digital pound. Participants emphasised the need for ease of use, accessibility, financial education, privacy safeguards and contingency plans to ensure that people could continue to access their money in the event of technology outages or other issues. Some participants felt the Bank’s involvement would be reassuring and others noted the need for appropriate regulation.

Impact of the rising cost of living on charities and community groups

Over the past year the Bank met nearly 200 charity and community organisations across the UK. The aim was to get a better understanding of third-sector challenges and the issues facing people who use the sector’s services. The Bank met organisations helping people with debt advice; basic necessities like food and toiletries and school uniforms; support with finding work; housing and mental health support; and a variety of other challenges.

Charities and community groups had continued to experience significant effects from the rise in the cost of living. Demand for their services was rising at an unprecedented level. They had also seen a change in the type of person accessing their services, including many working people who are turning to such organisations for the first time. Foodbanks reported that they were struggling with increased demand, lower donations, and rising costs. They reported that more low-income families were becoming reliant on their services, and they were concerned that some children will grow up thinking using a foodbank is the norm.

Charities were concerned about the severe impact of the cost of living on their clients as cuts to local services mean there are fewer places to turn to for people in need. They reported that low-income households are facing evictions, homelessness, and extreme poverty. Some people were choosing whether to heat their homes or to eat. The collection of outstanding energy debt, high rents, and an increase in doorstep lending were all concerns for service users.

Debt advice charities also reported a large increase in new service users who were having to turn to loans and payment schemes just to afford their monthly essentials and household bills. A number of these new service users were in full-time employment.

Their own organisations were also battling with the rising costs of energy and staffing. A lot of charities were dealing with recruitment and retention issues due to lack of funding; competition from other employers that were able to offer better pay for jobs perceived as ‘less stressful’; and staff burnout due to the relentless pressures on the sector.

Many of the organisations were unsure about their survival as funding was scarce and tended to be short term. Many had used their reserves to cover operating costs or the shortfall in funding from other usual sources. Some big, established organisations that employ people with disabilities were struggling due to staff shortages and the higher operating costs associated with having more vulnerable people. Volunteer support had continued to wane and was still below pre-Covid levels. They were also facing practical issues with banking, including accessing accounts, affordability of charges and the smooth operation of their banking needs.

How we use the information we gather

The information gathered from our outreach events directly feeds into our policymakers.

Policymakers often attend events to hear these insights for themselves. Summaries of discussions written by Bank staff in attendance are disseminated more widely with teams working in relevant policy areas. Ahead of every meeting of the Monetary Policy Committee (MPC), the network of Agents, who cover the regions and nations of the UK, present evidence gathered from their meetings with businesses. A summary of the findings from the outreach events is included.

A steering group chaired by the Bank’s Chief Economist Huw Pill, who sits on the MPC, and Sarah Breeden, Deputy Governor for Financial Stability, provided oversight of the Citizens’ Forum programme. A focus for the steering group is finding ways to ensure that the insights gathered from the outreach programmes are fed through to policymakers.

Views from our policymakers

Huw Pill, Chief Economist

‘This year I met and listened to hundreds of people from across the UK at 10 events. In June 2023, at home in Wales, I heard from charities, young people, and parents of young children in Newport. I met many of you from across the UK through online events, I spoke to charities in Northern Ireland, and I heard from others in Bristol as part of the Festival of Economics. I continue to be impressed at questions the public pose to the Bank and how they hold us accountable. These events have given me a good understanding of how the cost of living continues to affect people. It is really important that senior members of the Bank team get out of our offices and hear from people first-hand. I would like to thank all of you for your sharing your views and your time with us.’

David Roberts, Chair of the Bank’s Court of Directors

‘I thoroughly enjoyed meeting with local communities across the UK in 2023 and I am grateful for the generous insights and perspectives that were shared across the range of events I attended. The decisions that the Bank takes affect us all, so it’s really important that the Bank’s Court of Directors understands first-hand how people across the UK view its actions. Attending the Bank’s outreach events holds us to account and helps shape our thinking as we go about our work. I look forward to meeting more charities, community groups, schools, and members of the public in 2024.’

Sarah Breeden, Deputy Governor, Financial Stability

‘I really value the time and effort that our communities make to ensure my colleagues and I are able to consider a wide range of experiences as we go about our work. The events I joined this year were both enlightening, as they always have been, and important, as people continue to manage the rising cost of living. I look forward to continuing to join events as Deputy Governor.’

Conclusion and get involved

It is important for the Bank to listen to the views of the public, young people, and community groups over the past year on the important topics of the cost of living and the future of money. We recognise that these issues will remain relevant in the year ahead, and we will continue to listen at our events across the UK.

To take part in one of our outreach events, sign up by emailing outreach@bankofengland.co.uk

More information about our outreach programmes

The Citizens’ Forum allows the Bank to engage with members of the public across the UK. Anyone aged 18 and above is welcome to join the community, where they have access to events, updates, and surveys. Panel events are hosted by independent chairs. The Bank’s local Agent and a senior member of Bank staff also participates. There are currently around 4,000 people in the Citizens’ Forum community.

Community Forums allow Bank officials to hear from underrepresented and lesser-heard groups across the UK. Typically, the Bank works with a third sector organisation, such as a charity or community group, to hear from those who work in the sector and people who use their services.

We have changed the way we engaged with young people. In 2023 we trialled youth engagement events, working with sixth forms in schools and colleges and youth organisations This helps us to reach more young people from a wide range of backgrounds and locations in the UK.

Our partners

Partnering with other organisations allows the Bank to reach groups that are less likely to engage with them. The table below highlights the organisations we worked with.

Appendix: Summaries of panel events

From March 2023 to February 2024, we held 12 in-person panel events and three UK-wide virtual events.

London, March 2023

Participants told us about the impact of rising living costs on them and their households. People had made spending adjustments to higher food, transport, energy, and accommodation costs. Attendees reported lifestyle changes, including shifting to discount retailers and reducing leisure activities. Housing costs in London were highlighted as a barrier to city living, affecting young people. Some people had relocated due to the high cost of living. Concerns about growing debt and its long-term consequences were raised, affecting savings for future generations. We also heard views around the future of money. On a potential digital pound, participants emphasised the need for accessibility, education, privacy safeguards, and contingency plans for technology-related issues.

UK-wide (online), April 2023

Participants were concerned about the escalating cost of living. They had cut spending and missed out on social activities. There was uncertainty about the UK economy’s future. The compounded effects of Brexit, the Covid pandemic, and current inflationary pressures were described as significant, leading to feelings of exhaustion and consecutive trauma. Some expressed scepticism about whether Bank Rate changes would have much impact. Many felt that the inflation they were experiencing, particularly in relation to food and energy costs, surpassed official rates.

Peterborough, May 2023

Food and energy costs dominated concerns. Many felt price rises exceeded official figures. Participants had cut spending and sought additional income. Financial strain was taking its toll on households, and some felt a lack of financial education exacerbated these challenges. Some people used credit and savings to manage higher costs. Those with savings worried about the impact of high inflation on their money. Participants criticised the speed of interest rate rises, and some questioned their effectiveness. Participants stressed the importance of cash. Many had reservations about a potential digital pound, citing concerns about privacy, external controls on spending, and cybersecurity risks.

Newport, Wales, June 2023

We met parents at a primary school who were deeply affected by the surge in living costs, experiencing significant financial strain and uncertainty. Rising food, energy, and housing costs were prominent worries, pushing people to make significant cutbacks. We heard that the affordability of basic essentials was increasingly challenging, with widespread use of food banks. Those on fixed incomes were particularly struggling. Soaring energy costs and unaffordable rents, with increases of 30%–50%, compounded participants’ difficulties. Some faced homelessness, residing in budget hotels for extended periods. Others accumulated debts which they found difficult to repay. Distrust of banks meant that many relied on loans from families who were also stretched. There was concern about scams targeting people with English as a second language. High childcare costs limited access to education and work opportunities.

Newcastle, June 2023

This was a targeted event for people aged over 55. Many worried about rising inflation, particularly, for essentials causing frustration over the perceived lack of control participants had. Mortgage costs troubled participants, noting the impact on younger people. The need for more affordable housing and social housing was emphasised. Participants also raised the need for clearer and accessible communication from institutions like the Bank. In the discussion about the future of money, participants valued cash for budgeting and expressed concerns about financial exclusion, digital access challenges, and scepticism about a potential digital pound.

Manchester, July 2023

Participants felt stressed about both the immediate and longer-term economic situation. Concerns centred around food and energy prices. Higher mortgage rates began to impact budgets particularly where fixed-rate deals ended. Many noted that higher interest rates seemed to pass on to debts quicker than they were passed on to savings. Some noted they were no longer able to save and used credit to buy basic essentials. Participants were divided between the benefits of cash versus digital payments. There was nervousness and distrust of cryptocurrencies, but less about a potential digital pound as the Bank’s involvement would be reassuring.

UK-wide (online), July 2023

Concerns centred around the rising cost of living, particularly food and energy prices. We heard a normal weekly food shop had increased from £100 to £180. Discretionary spending was reduced, affecting local businesses. Savers were frustrated as they had not seen higher interest rates passed on. Mortgage holders faced significant repayment increases. Some criticised the Bank's policies. Participants detailed the impact of the pandemic and cost of living. Pay rises were deemed inadequate, with some changing jobs or getting promotions. Some adjusted their retirement plans to cope. Rising childcare costs led to increased reliance on family and friends.

Stowmarket, July 2023

This panel was held at Primadonna festival, a women’s book festival in Suffolk. Concerns focused on the cost of essentials including food and energy. We heard about the disproportionate impact that the cost of living was having on people on lower incomes. Participants shopped around for lower food prices, purchasing own brand items and use of budget supermarkets was widespread. We heard concerns about the cost of housing and worries people had when their fixed-rate mortgage deal ends. Some savers were frustrated about not receiving higher interest rates.

Orkney, September 2023

Food costs were a major worry, with increased prices and limited options to trade down to own brand products. High energy costs created fuel poverty. Older housing stock and long cold winters and significant increases in energy standing charges exacerbated the issue. Higher interest rates resulted in rising rental and mortgage costs, exacerbated by local housing scarcity. This severely affected agricultural and low-paid workers, affecting the availability of labour and local service provision. Increased fuel costs led to higher transport costs. The difficult economic conditions had affected some participants’ pensions. In the discussion on the future of money, participants emphasised the importance of maintaining access to cash, and raised concerns about scams associated with both face-to-face financial services and increased digitally based provision. There was low awareness of a potential digital pound and scepticism about whether it was needed.

Norwich, November 2023

We heard from parents and staff at a primary school. Participants reported a 30% increase in food costs including nappies and baby formula. They shared tips on local deals via WhatsApp. They reduced energy and water usage and socialised less to save money. Housing worries included rising rental costs and mortgage renewals. In-work struggles were highlighted for those ineligible for Universal Credit. Some relied on savings to manage, while others took on additional work including a new YouTube channel. Childcare costs posed barriers for female participants, affecting work and education opportunities.

Bristol, November 2023

This panel was held at the Bristol Festival of Economics. Concerns included food inflation, energy costs, and for younger participants, affordability of to buying or renting a home, due to rising interest rates and limited housing supply. Rising transport costs particularly affecting on-site workers who were unable to work from home. People had cut discretionary spending, affecting local businesses. In discussions on the future of money, maintaining access to cash was important, especially among older participants, with concerns about the rise in cashless businesses. Awareness of a potential digital pound was low, accompanied by privacy concerns and scepticism about the rationale for it. The shift to digital financial services raised worries about cybercrime and fraud.

Nottingham, November 2023

Participants were concerned about a generational and economic divide, with younger people and those on low incomes disproportionately affected by the rising cost of living. Increased inequality and its potential social repercussions were significant concerns. People cut energy usage and shopped around for lower food prices. Job security, especially for younger workers in the gig economy, was a worry. Participants had mixed views about the future of money, with some concerned about becoming a cashless society, fraud in digital payments, and the need for financial education. Concerns about privacy, technology dependence, and the importance of proper regulation were raised in relation to a potential digital pound.

UK-wide (online), December 2023

The rising cost of living affected both daily expenses and plans for retirement. Those receiving private pensions reported more positive outcomes with income increases surpassing inflation. Food, energy, a housing costs placed significant strain on tight budgets. Participants discussed the challenge of paying high bills two years in a row. Energy costs were a concern particularly for people living in older, low energy rated buildings. Housing costs and generational inequality were raised as a major issue. Older participants reported supporting their adult children, and young people told us about struggling to rent or buy a home. On the future of money, we heard concerns about financial exclusion, the importance of cash and face-to-face financial services. Concerns were raised about fraud and scams related to digital banking. Participants expressed privacy concerns and questioned the rationale for a potential digital pound.

Birmingham, February 2024

On the cost of living, participants commented on having to be frugal to maintain their current standard of living. Participants felt that the Bank and others could do more to communicate the state of the economy and enhance public understanding. The prevailing sentiment was one of discontent with the economy, including concerns about the widening income gap. The discussion also highlighted disaffection towards increased interest rates, with scepticism about the effectiveness of inflationary measures to address prices. On the future of money, participants considered choice of payment methods to be important. There was low awareness of a potential digital pound, but participants were open to the idea. There was strong support for physical cash to remain as a payment option.

Belfast, February 2024

Food prices were the main concern of participants, with many feeling that prices were well above the official rate. Utilities were another area. Although they had fallen, they were still elevated compared to two years ago. Participants felt that saving was difficult with disposable income reduced or cut altogether. Regarding their views on the future of money, there was a lot of support for cash, despite many using it less. The majority used card payments, but there was some scepticism over other forms of digital payments. Many advocated for financial education. Data and privacy were the main concerns about digital currencies and CBDC.