What is a recession? What UK recession could mean for your hard-earned money | Personal Finance | Finance

“This is just one example of how recessions impact the most vulnerable.”

Mr House said: “From an employment perspective, a recession brings on the likelihood of job loss, employment stagnation and pay under inflation.

“This also means that graduates or people seeking their first employment will find it extra difficult.

“For people in receipt of benefits, this will provide an incredible barrier.

“As the benefit values are fixed whilst inflation increases, it means you will be left with less and less money to be able to heat your home or feed yourself.”

For those with mortgages, depending on the rate you’re on, it could see a starker rise in repayments, while the Bank of England continues to hike interest rates.

All the while the costs of goods and services will continue to rise until what the Bank forecasts to be the rest of next year.

What can households do to mitigate the impact?

Mr House said: “The first point of call relevant to all UK residents is to take an internal audit of your monthly budget.

“Check bank statements and get out a highlighter pen to evaluate your monthly purchases and outgoings to see what can be cut. One considerable expense to UK adults is subscriptions.”

A study conducted by Barclaycard Payments uncovered the quite shocking revelation that the UK spends on average £552 annually, per household, on monthly subscription boxes.

Mr House said: “This equates to roughly £46 a month haemorrhaging from accounts from subscription boxes, highlighting the age-old phrase ‘time saved, is money spent’.”

Another tip would be to reevaluate your shopping habits.

Mr House said: “Supermarkets – the great bastions of consumerism, have deployed every trick in the book to not only get you to spend more money but subtly promote a degree of tribalism amongst its patrons, encouraging undying loyalty to their brand above all others.”

From impulse buys stacked methodically by the till, eye-level ‘deals’ being more expensive and ‘exploding sales’ encouraging you to buy more than you need, supermarkets are pretty clued up on getting you to spend more.