Food affordability concerns on the rise says FSA survey

BRC states that “fierce competition” between retailers has driven food inflation to its lowest level in two years with retailers absorbing many rising costs to protect customers

Almost 90% of people in England, Wales and Northern Ireland are ‘highly concerned’ (55%) or ‘somewhat concerned (34%) about the affordability of food according to the latest wave of the Food Standards Agency’s (FSA) Food and You 2 survey (Wave 7), conducted by IPSOS between April and July 2023.

During the previous 12 months, 80% of respondents reported changing their eating habits due to financial reasons, including eating out less (49%), eating at home more (45%), eating fewer takeaways (44%) and buying items on special offer more (44%). Some also reported an increase in risky food safety behaviours.

“The latest data shows increasing levels of concern about rising food prices, with almost nine out of ten people reporting that they were highly or somewhat concerned about the affordability of food – the highest level since our survey began,” said Emily Miles, FSA Chief Executive. “It is particularly concerning that some respondents were telling us they were turning to riskier food behaviours to save money, such as keeping leftovers for longer and eating food past its use-by date. These types of behaviours can lead to a higher risk of people becoming ill with food poisoning.”

Despite food prices falling to their lowest levels since April 2022, the survey found the level of household food insecurity remained at 25%, the same as the previous wave (Wave 6) and joint-highest level since the survey began in 2020. In the last year, 4% of respondents reported using a food bank, compared to 3% in Wave 5, and 5% had used a ‘social supermarket’, which sells discounted food to those on lower incomes. Younger adults, low-income households, households with children and those with long term health conditions were more likely to report food insecurity.

“A perfect storm of supply chain disruption driven by the pandemic, the Russia-Ukraine war, and extreme weather has led to skyrocketing food prices over the past two years,” said Rebecca Tobi, Senior Business and Investor Engagement Manager at the Food Foundation. “Even though food price inflation has since fallen, prices remain high, and as the latest FSA data show, over half the UK population are still very concerned about affording food.”

“We need urgent action from retailers and manufacturers to ensure that healthy staples are priced affordably…”

Tobi added that this is having a “very real impact on UK citizens' diets” which will have numerous health consequences, particularly for low-income families. “15% of families experienced food insecurity in January 2024, and sales of vegetables have fallen to their lowest level in 50 years. We need urgent action from retailers and manufacturers to ensure that healthy staples are priced affordably, and the government need to act so that low-income families can afford enough food.”

Andrew Opie, Director of Food and Sustainability at the British Retail Consortium (BRC) said: “Fierce competition between retailers means food inflation is now at its lowest level in two years. Retailers have absorbed many rising costs in the supply chain, protecting their customers and seeing lower profit levels as a result.

“Furthermore, they are committed to supporting customers affected by the high cost of living, seen through expanded value ranges, and lower prices for key products."