The cost of living crisis has disproportionately impacted women’s finances and their ability to withstand the potential impacts of a recession, new research from Quilter has indicated.

According to findings published by the wealth manager, over a third (36%) of women would not be able to afford their everyday expenses should the UK enter a recession, compared with just a quarter (26%) of men.

The nationally representative research, based on a study of 2,001 UK adults, suggested the cost of living crisis is putting greater pressure on women’s finances than the COVID pandemic, which was found to have disproportionately impacted women both economically and socially. Quilter reported that 31% of women said they are in a worse position financially than this time last year, compared to 25% of men who felt the same way.

Previous research from Quilter has revealed that one in five women (21%) felt they were worse off financially at the end of 2021 than they had been the year prior, which at the time compared to 18% of men.

“Our research paints the picture that women are disproportionately facing considerable financial pressures because of the cost of living crisis and are fearful of the prospect of a recession, with a third reporting they are in a worse position financially than this time last year,” said financial planning consultant at Quilter, Angela Davy-Makwana.

“The UK has so far narrowly avoided a recession, but we are not out of the woods yet and it is concerning that more than a third of women feel they would not be able to afford their everyday expenses should one materialise.”

The Government’s Women and Equalities Committee recently held an evidence session exploring the impact of the rising cost of living on women, hearing from representatives of women’s centres and programmes supporting women and their families.

Quilter suggested the evidence aligned with its own findings, as the Committee heard that the cumulative impact of both the pandemic and the cost of living crisis has heightened women’s reliance on support services, and that the gender pay and earnings gap has made women more vulnerable to the cost of living crisis.

Davy-Makwana added: “Though it is positive that the Government is exploring the impact the cost of living crisis has had on women, more must be done to ensure that women feel financially secure. For those who are feeling the strain of the cost of living crisis and are concerned about the prospect of a recession, it is important to act sooner rather than later when it comes to assessing your finances and taking steps to improve them.”

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