Brexit still hitting poorest hardest as food costs rise and mental health worsens

Low-income families, migrants, young adults and small businesses remain the most negatively affected groups five years after the UK left the EU, with household budgets and wellbeing deteriorating

Poorer households are bearing the heaviest strain from Brexit, with essential goods absorbing a larger share of income and rising food import costs feeding directly into weekly spending, new research reveals. 

Migrants, small firms and younger adults are also experiencing sustained pressure, five years after the UK’s withdrawal.

Trade agreements with Australia, New Zealand and India have proven inconsequential in compensating for reduced commerce with the EU. 

The findings form part of a post-Brexit audit authored by Iain Begg, Professorial Research Fellow at the European Institute, London School of Economics and Political Science.

Its data, published yesterday, indicates that the fallout has been more severe in Britain than in Europe, although overlapping crises such as the pandemic and the cost-of-living surge complicate precise measurement.

Tensions have surfaced within families where partners hold different nationalities, particularly over decisions on whether to apply for settled status. 

There is also evidence of psychological strain: a 2022 analysis of UK Household Longitudinal Survey data links the referendum to worsening mental health among Remain voters, most notably among men, 31–46-year-olds and individuals with higher educational attainment.

Despite the promise of greater independence, many EU rules have been carried over into UK law, while proposals for ongoing dynamic alignment have divided opinion, with unease in Northern Ireland over the risk of divergence affecting the Union.

According to Begg, the UK-EU Summit in May 2025 represented a reset in relations, with open signals towards strengthening cooperation on the economy, security, immigration and climate policy.

“In all these respects, the future of the UK-EU relationship remains crucial to the interests of both sides,” he said.

READ MORE: ‘UK-EU trade deal: what’s in the Brexit reset agreement?‘. The UK government has confirmed a new agreement with the European Union “to support British businesses, back British jobs, and put more money in people’s pockets”.

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