Brexit still hitting poorest hardest as food costs rise and mental health worsens
John E. Kaye
- Published
- News

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”.
Do you have news to share or expertise to contribute? The European welcomes insights from business leaders and sector specialists. Get in touch with our editorial team to find out more.
Main image: Johannes Plenio/Pexels
RECENT ARTICLES
-
Germany’s Axel Springer buys 170-year-old Telegraph in £575m deal -
Christian Lindner to headline Vaduz finance forum as Liechtenstein banks confront market and geopolitical strain -
Wizz Air cleared to launch UK–US flights ahead of 2026 World Cup -
EU warns women face 50-year wait for equality as Brussels targets deepfakes, pay gaps and political exclusion -
AI now trusted to plan holidays more than work, shopping or health advice, survey finds -
Banijay and All3Media to merge in €4.4bn deal creating global TV production giant -
Abu Dhabi to build first Harry Potter land featuring both Hogwarts Castle and Diagon Alley -
Could AI finally mean fewer potholes? Swedish firm expands road-scanning technology across three continents -
BrewDog collapses into administration as US cannabis group Tilray buys UK business for £33m -
Government consults on social media ban for under-16s and potential overnight curfews -
Twitter co-founder Jack Dorsey cuts nearly half of Block staff, says AI is changing how the company operates -
Brisbane named world’s best city to raise a family, with London second -
Hornby sells iconic British slot-car brand Scalextric for £20m -
WPSL targets £16m-plus in global sponsorship drive with five-year SGI partnership -
Dubai office values reportedly double to AED 13.1bn amid supply shortfall -
€60m Lisbon golf-resort scheme tests depth of Portugal’s upper-tier housing demand -
2026 Winter Olympics close in Verona as Norway dominates medal table -
Europe’s leading defence powers launch joint drone and autonomous systems programme -
Euro-zone business activity accelerates as manufacturing returns to expansion -
Deepfake celebrity ads drive new wave of investment scams -
WATCH: Red Bull pilot lands plane on moving freight train in aviation first -
Europe eyes Australia-style social media crackdown for children -
These European hotels have just been named Five-Star in Forbes Travel Guide’s 2026 awards -
McDonald’s Valentine’s ‘McNugget Caviar’ giveaway sells out within minutes -
Europe opens NanoIC pilot line to design the computer chips of the 2030s


























