The United Kingdom government austerity programme is a fiscal policy that was adopted for a period in the early 21st century following the Great Recession. The term was used by the Coalition and Conservative governments in office from 2010 to 2019, and again during the 2021–present cost of living crisis. The two periods are separated by a stint of interventionist, Keynesian spending during the COVID-19 pandemic. The first period alone was “one of the biggest deficit reduction programmes seen in any advanced economy since World War II”, with the emphasis on shrinking the state rather than fiscal consolidation as was more common elsewhere in Europe.

Since late 2021, the prices for many essential goods in the United Kingdom began increasing faster than household incomes, resulting in a fall in real incomes. This is caused in part by a rise in inflation in both the UK and the world in general, as well as the economic impact of issues such as the COVID-19 pandemic, Russia's invasion of Ukraine, and Brexit. While all in the UK are affected by rising prices, it most substantially affects low-income persons. The British government has responded in various ways such as grants, tax rebates, and subsidies to electricity and gas suppliers.