The UK Cost of Living Crisis: Why Does It Cost So Much Just to Exist?

Welcome to Britain, where even breathing feels taxable. You’d think living in one of the world’s wealthiest economies would mean a decent quality of life, but for millions of people—especially the chronically ill and disabled—just surviving has become a financial nightmare.

If you can’t work full-time due to disability, illness, or caring responsibilities, the system doesn’t offer a safety net. Instead, it actively punishes you with relentless taxes, rising living costs, and benefits that barely cover the basics.

So, let’s break down what life in the UK actually costs before you’ve even considered the luxury of, say, eating—or affording the extra costs of being disabled.

1. The Government Wants Your Money – Before You Even See It

Before you even think about spending your hard-earned cash (or benefits, if you’re unable to work), the government has already taken a hefty chunk:

• Income Tax

  • 20% on anything over £12,570

  • 40% if you dare to earn more than £50,270

  • 45% if you somehow make it past £125,140 (congrats, you’re in the minority)

• National Insurance (NI) – Another chunk taken from wages, despite the fact that this was meant to fund the NHS (which is now crumbling).

  • 8% on earnings between £12,570 and £50,270

  • 2% on anything over that

If you’re unable to work and on Universal Credit, your monthly allowance is:

• £393.45 per month (single person over 25)

• £617.60 per month (couple over 25)

To put that in perspective, that doesn’t even cover the cost of rent.

2. The Cost of Disability in the UK: It’s Pay-to-Exist

For disabled and chronically ill people, life is already expensive—without factoring in the UK’s broken economy. Here’s what living with a disability or chronic illness can cost per month:

Expense	Average Cost (£)
Heating Costs (Extra Energy Usage)	£100 - £200
Medical Costs (Prescriptions, Pain Relief, Equipment)	£20 - £100+
Transport (Taxis due to Mobility Issues)	£50 - £200
Specialist Diet (If Required for Health Reasons)	£50 - £150
Care Support (If Not Fully Covered by Benefits)	£100 - £500

Even if you qualify for PIP (Personal Independence Payment)—which is notoriously hard to get—

• The highest rate for daily living is £737.20 per month

• The mobility component can add up to £295.20 per month

This sounds decent, but when the additional costs of disability are factored in, many disabled people are still barely breaking even.

Meanwhile, benefits like PIP and ESA (Employment and Support Allowance) are constantly under review, meaning people are forced into endless reassessments that often strip them of financial support—even if their conditions are lifelong.

3. The Cost of Having a Roof Over Your Head

Now, let’s say you’re renting. In the UK, disabled people often can’t work full-time, but rent still has to be paid.

• Rent – £1,100 per month for an average home.

• Council Tax – £150-£250 per month (even if you’re struggling to pay rent).

• Energy Bills – £150 per month (higher if you need constant heating due to disability).

• Water Bills – £40 per month (because somehow, access to water isn’t a basic human right).

• Broadband & TV – £50 per month (because if you’re homebound, entertainment is a necessity).

• TV Licence – £13.25 per month (even if you only watch live TV once a year).

For disabled people, some benefits cover housing costs, but Housing Benefit rarely matches actual rent prices, meaning disabled tenants often have to pay out of pocket.

Total housing-related costs: £1,703.25 per month—and we haven’t even bought food yet.

4. The Cost of Just Getting Around (Or Not Being Able To)

Disabled people often can’t use public transport, meaning travel costs are higher due to reliance on taxis or private transport.

• Car Tax (VED) – Some disabled people qualify for exemptions, but not all.

• Fuel Duty – The UK has one of the highest fuel duties in the world at 52.95p per litre.

• Taxis – If you can’t drive, wheelchair-accessible taxis cost more than standard fares.

• Public Transport – Some areas have free bus passes, but many disabled people can’t use buses or trains due to accessibility issues.

Even when there are disability allowances, they often fail to cover the real cost of mobility limitations.

5. How Other Countries Support Disabled People Better

The UK’s benefits system punishes those who can’t work, while other countries offer more security:

Country	Disability Support System	Additional Benefits
UK	PIP (£737.20 max)	No heating allowance, high transport costs
Canada	Disability Tax Credit, Provincial Benefits	Cheaper utilities, lower VAT
Germany	Higher disability pension, free healthcare	Lower transport costs, tax exemptions
France	Allowance for Disabled Adults (€971 per month)	State covers transport & home adjustments
Norway	Full salary coverage for disabled workers	Free healthcare, disability housing grants

Why the UK System Fails

• PIP assessments strip people of support despite having lifelong conditions.

• Housing Benefit doesn’t cover actual rent, meaning disabled tenants struggle.

• No winter fuel allowance for disabled people unless over 66.

• No automatic free public transport access, despite mobility challenges.

6. What Needs to Change?

✔ Higher disability benefits that match real-life costs – The extra cost of being disabled in the UK is £600-£1,000 per month. Benefits should reflect that.✔ Abolish Council Tax for those on disability benefits – Why should disabled people be taxed for existing?✔ Lower VAT on essentials – 20% VAT on medical items and home repairs is a disgrace.✔ Proper rent controls – Housing Benefit should match actual rent costs.✔ More accessible public transport – If disabled people can’t use trains and buses, they should get higher transport grants.

7. Final Thoughts: The UK’s Broken System is Killing Disabled People

The UK’s cost of living crisis is hitting everyone, but for the chronically ill and disabled, it’s an ongoing emergency.

The benefit system doesn’t cover actual living costs, the energy crisis has forced disabled people to choose between heat or food, and the constant threat of benefit reassessments creates stress and financial instability.

Meanwhile, other countries offer better disability pensions, lower living costs, and more financial support. The UK, on the other hand, has:

❌ A broken PIP system❌ Council tax for disabled people❌ No winter fuel help unless you’re over 66❌ One of the highest VAT rates on essentials

Until these issues are addressed, disabled people in the UK will remain trapped in a cycle of poverty, debt, and neglect.