Cost of Living Crisis

[TwinklingFairyLights]

Is this not having much of an impact yet? I was in central Manchester on Friday and restaurants, pubs and bars were all full. I phoned to book a haircut and my hairdresser is fully booked for 2 weeks. I thought discretionary spending would be reducing by now but I can't see it.

Agreed. Apparently in the last month nearly 5% of people went at least a day without eating and a lot more are in food vulnerability.

We've found ourselves not doing certain things so much, and it might be the case that you might not notice 5% less people on a weekend night out.

What I would say is that if you have disposable income, then go out and enjoy yourselves. Good for you and hopefully keeps a few more on the minimum wage (those in retail/hospitality) in a job.

I've also held off on buying a new (used) car. I've got the money saved up and sitting in the bank. I'm not buying due to the cost of new and used cars being artificially high due to the shortage of semi conductors. I heard in R4 that this should be sorted out in early 2023 so I'm just going to hang on to my current car until then.

Agreed. Apparently in the last month nearly 5% of people went at least a day without eating and a lot more are in food vulnerability.

I understand that. If people were already just breaking even then the price increases will have had a devastating impact.

I'm talking more about the section of society that had some level of disposable income. I'm not well off but I earn above average and I'm cutting back.

I get a haircut every 2 years - no I am not exaggerating or joking.

Have you ever noticed lots of kids (and many adults) in deprived areas either have long hair or a No2 done with clippers.

Clippers are often passed between neighbours.

I think it is hitting the poorest hardest. We are middle income/earners and we are not feeling the pinch too much just yet. But we benefit from WFH meaning reduced fuel costs, solar panels meaning we won't actually generate a bill over the summer for electricity (which tides us over in the winter in terms of financial buffer), we can afford the additional food costs without stress.

We aren't having a paid-for holiday this year, but we never go abroad anyway due to DC with additional needs who find it too stressful.

I think the media are somewhat enjoying whipping up a frenzy over the summer, then when the costs truly bite in winter they'll ignore it again for something more 'exciting.'

That said, I have huge sympathy for those who are struggling and recognise our own extreme fortune. We regularly donate to food banks etc and volunteer with charities helping others.

Some people won't need to cut back and will carry on spending at the same level.

Some people who don't need to cut back will do so.

Some people who need to cut back won't and will get into debt.

Some people will cut back in some areas but not others.

Some people will be forced to cut back because their basic essential costs exceed their income.

The above combined isn't necessarily going to translate into demand for all non essential goods and services noticeably dropping in the short term if demand previously exceeded supply. You sound disappointed that other people haven't changed their behaviour like you have.

You sound disappointed that other people haven't changed their behaviour like you have.

I'm just asking for other people's opinions on a chat board 😬, because what I'm reading on the news and what I'm seeing in real life aren't matching up.

I'm talking more about the section of society that had some level of disposable income. I'm not well off but I earn above average and I'm cutting back.

if you consider yourself part of that section, yet still have some disposable income you’ve answered your own question.

The hairdresser I go to hasn't replaced the 'junior' who recently left and who used to make the coffee, do that hair washes etc. so the stylists have to do it themselves. So fewer appts available.

The ways in which people and businesses are feeling the pinch and having to cut back aren't always obvious.

We are in the ridiculous position where we can’t now afford for dh to work - he’s given up as we are better off both as carers (on UC) rather than old system of part time work and ctc 😞
we can get rent paid fully on UC and most of c tax so it’s the only option but feels so depressing

Could it also be that because people know it’s likely to hit this coming winter, many just feel (especially after years with covid restrictions) f**k it, let’s live and enjoy ourselves while we can…?

Martin Lewis asked the question on twitter a while ago, the results were things like, got rid of the cleaner, the gardener, spa days and luxury holidays for the middle earners and above. The lower earners it was things like kids activities, days at the zoo, extra clothes shopping. For the worst hit it was things like warm meals, washing hair or clothes more than than once a week and pets. Was a depressing read tbh.

I’m near Manchester and have noted similar recently. Agree with comments above for reasons. Also I just don’t think it’s hit everyone yet. We are fixed til summer energy wise. It will bite us much more come winter once the fix ends. I’ve noted food prices already. Obviously some will soak up the costs of living. Some use credit/debt to keep up their lifestyles. But the poorest are always hit worse too.

We are comfortable with some disposable income and ability to save but those increases in bills will cause us to have less meals out, treats etc but for the summer we are fine so will be spending money with plans we’ve already made. We already have things booked/paid for. I think it will be more apparent come winter/spring 2023.

Yes exactly this. No haircut for me since 2018 , we use clippers for dc.
it’s hard when you look and think ‘where can I cut back more?’ And there isn’t anywhere

The people it will hit hardest won’t have been doing those things anyway.
an extra 2 weeks for a hair cut, try an extra 2 years and do it yourself at home for some.

I think most people are carrying on as normal. Of course some things have gone up but not massively - and not so much people will stop living their lives normally. No one is expecting this to be a deep or protracted recession. This is a war/covid related blip if you like, inflation spike. I would think heating in the autumn will need some solutions.

It is packed here, can't get an app for a pedicure for 4 weeks, long waiting lists for restaurants at the weekend. A buoyant market - and I don't expect that to happen any time soon.

Because the majority of the British public are shit at saving and will continue to just keep putting stuff on a credit card rather than cutting back. It's very hard to stop treating yourself to things once they stop becoming luxuries and you get used to thinking of them as essentials or bare minimum.

It's exactly the same as 2 years ago -according to the news EVERYONE was struggling for money due to furlough not being equivalent to full wages, some people not being entitled to it, others losing their job - yet in the real world pubs and restaurants were bursting as soon as they were allowed to reopen, everyone and their dog was spending a fortune on hot tubs, garden furniture etc.

Also bear in mind that lots of people weren't having their usual holidays for 2 years- in 2019 the average brit went on 1.9 holidays abroad, so when taking into account the very poorest and thise who wouldnt have gone abroad that's an average of 4-5 holidays saved per person which if you're used to spending a few grand per holiday is a lot. Millions of people are still working from home, saving thousands a year in commuting costs. Some people have done really well from house prices shooting up. I, my parents, and a few of my friends are all still on our fixed term energy prices so the increase hasn't hit us yet. Etc etc.

Basically the cost of living will hit everyone at some point, but some haven't really been affected yet, some will have enough of a buffer not to have to significantly decrease their non essential expenditure, and some really should decrease their spending but won't because they consider they deserve it, life is for living, they'll pay it back at some point, their wages might go up or they will get an inheritance or make a profit when they downsize their houses, etc etc. There was a thread on here about a month ago where a poster was wondering whether to make a big non essential purchase with no guarantee she'd ever pay it off and 70% were encouraging her to go for it on the basis of the arguments above.

I think there's a lot of heads being buried in the sand.
The real impact (other than food) isn't really being felt yet. Most people are probably on fixed rate mortgages and gas and electric usage at this time of year is naturally lower.
We should be trying to build a buffer now but I expect many are not.
There's also a view that things are only getting more expensive so probably a lot of buying before expected price rises and enjoying more normal post covid time is skewing things.

I appreciate that for those already struggling this isn't possible but for most people, trying to put by a small amount each week is sensible.

CEO of Scottish Power predicting another rise of £1000 in October...

Yes here too

The prices are going to go up more ??

We have a larger than average for this area household income.

I've cancelled a couple of subscriptions.

Heating hasn't been on for weeks 🥶

Trying not to use my car as much.

Cancelled a couple of planned meals out too as the price rises are just ridiculous here ...£12 for a dish of plain tomato pasta??? Madness.

I think families on low incomes are already suffering and the middle and higher earners will feel it this winter....

We have a planned city break next month and are still going (but only because we are taking someone else...) and a UK break in July already booked.

I can't see us going abroad again for some time tbh.

Yes...its been widely reported but the figures I saw were 35%

Obviously its going to be higher:(

For those who may need it:

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