to question if the squeeze on living standards will not be temporary?

[bindud]

"British families are facing the biggest squeeze on living standards for 30 years as surging prices and tax rises take their toll."

"The Bank of England forecast a 2pc fall in incomes after tax this year – the worst since its records began in 1990. In 2023, they’re set to fall 0.5pc."

Apparently things will get better in 2023, but will they?

We have the frozen income tax bands, ageing population, & most likely more wage stagnation after a decade of it after the 08 crash.

Is life just going to be more & more expensive going forward for the vast majority of people? or am i being too pessimistic?

As a low earner btw my council tax is more than my income tax and NI bill put together even with the 25% discount I get for being a single parent (makes no sense that it isn't 50% given I'm at least half the number of adults of any other type of household).

Totally agree with this!

I recently discovered that if I add student DD to my tenancy we'd get a 50% discount on council tax as opposed to the 25% we get just now.

Given that she'll also be able to claim the paltry shared room rate housing element of UC during the summer & housing costs from the discretionary fund at college if she's a joint tenant it's definitely something we're considering doing.

This will also mean she'll automatically get to stay in our HA property if anything should happen to me.

Given that she'll also be able to claim the paltry shared room rate housing element of UC during the summer & housing costs from the discretionary fund at college if she's a joint tenant it's definitely something we're considering doing.

Is this something just available to social housing tenants, or is it available to those in private rented too?

@Stellaris22

I can't see it getting any better with the Tories in charge. House prices are unaffordable, savings will be wiped out and it's going to be hard.

This is happening globally, do we have a global tory government. If war begins in Europe again, there'll be more changes, that'll be Boris's fault too I'm sure.

The disruption from the pandemic and the measures advised by the scientists will come at a cost for a minimum of 5 yrs. Get used to it, no more £2 chickens or having the heating on 24hr a day at 30 degrees.

@Zotter

Something's gone seriously wrong with pay in this country.

After the 2008 financial crash inflation adjusted wage levels in the U.K. had not increased at all by 2018 since they have increased slightly. Growth has been sluggish since 2009 . Some economists argue that the Coalition govt choosing to impose austerity immediately after the crash impeded growth. Meanwhile financial markets did fine. Also some economists argue the coalition government's Help to Buy scheme for first-time buyers further inflated the value of homes which increased, on average, by 61% between 2009 and 2021 - according to the Office for National Statistics.

The outcome those with assets have fared much better and the more assets the better of course. Those who only have income have seen their living standards fall and as we are seeing they will fall even further.

www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/kgq2/qna

Growth has been sluggish since the early '90s, then flattened since 2008. Guess which generation benefitted from the golden period.
Another point is there is no more value to be extracted from an economy that basically has every adult working, we have very high employment levels.
We have 50% paying no tax and wage subsidies via the benefits system.
It's a mess.

@Zotter

The point about the length of the working week was someone said people work longer hours now. i don't think it is true.

I have not read through so this might have been said already. I think the argument is the family unit is working longer hours. As before more households with children could manage with one main earner and the other parent perhaps working a few hours. Now in many areas both parents have to work full time from when the child is young to afford rent or a mortgage.

That might be true but I didn't know any stay at home parents in the 70s, I did know some who worked part time but I guess if you are working you are less likely to spend time with parents who aren't working.

The 70s was a strange decade, people sort of quote it like 1970 was almost the same as 1979 but it really wasn't in so many ways particularly because of what inflation and cycles of high and low unemployment. If someone quotes what they were earning "in the 70s" you really need to ask if it was 1970 or 1979 as the average wage will have been very different.

I’m not sure how lots of people are going to survive.
We are usually okay, not rich but able to pay bills and get the odd takeaway or go on a day trip.
Things are getting tighter, we have already decided against upgrading car as we usually would/new phone contracts and are now debating whether to spend X on something wheras before I probably wouldn’t have worried as much. I think it will be a case of pay bills and that’s it.

I can see pubs and other entertainment type businesses massively struggling.

@SJFarter

Given that she'll also be able to claim the paltry shared room rate housing element of UC during the summer & housing costs from the discretionary fund at college if she's a joint tenant it's definitely something we're considering doing.

Is this something just available to social housing tenants, or is it available to those in private rented too?

It would be available to all however it is likely to be more difficult to add a non-working student to a private tenancy than a social housing one.

I don't understand how that would get you a 50% discount? Can you explain? Also you don't have to be on the tenancy to be on the council tax bill/electoral register so I don't get why you'd need to be added to the tenancy?

@swallowedAfly

I don't understand how that would get you a 50% discount? Can you explain? Also you don't have to be on the tenancy to be on the council tax bill/electoral register so I don't get why you'd need to be added to the tenancy?

Because if you're not on the tenancy you have no obligation to pay the council tax bill as that's in the tenants name only - by adding them to the tenancy the council tax becomes a joint liability.

@bindud

The point about the length of the working week was someone said people work longer hours now. i don't think it is true.

I don't think it's true but isn't the point we should be working much less? Working hours haven't decreased as much as they should have.

You can't expect to earn more, or even the same, for working fewer hours.

@Maneandfeathers

I’m not sure how lots of people are going to survive. We are usually okay, not rich but able to pay bills and get the odd takeaway or go on a day trip. Things are getting tighter, we have already decided against upgrading car as we usually would/new phone contracts and are now debating whether to spend X on something wheras before I probably wouldn’t have worried as much. I think it will be a case of pay bills and that’s it.

I can see pubs and other entertainment type businesses massively struggling.

I was talking to DH about how businesses would change. I thought eating out could reduce but then maybe people would move to cheaper places so somewhere like Weatherspoons might do well and the places rich people go would be OK but the ones in the middle might struggle.

I bought 2 coffees at a motorway Costa last week and it cost £7.50 (treating the person who gave me a lift) I nearly fainted. £7.50 for two not particularly great coffees. Wouldn't be surprised if people cut down on that sort of thing. I'll take a flask next time.

I wonder how it will play out. I do remember loads of empty shops in the 70s but I can't really remember if any particular sort of business struggled or if it was just general.

@Maneandfeathers

I’m not sure how lots of people are going to survive. We are usually okay, not rich but able to pay bills and get the odd takeaway or go on a day trip. Things are getting tighter, we have already decided against upgrading car as we usually would/new phone contracts and are now debating whether to spend X on something wheras before I probably wouldn’t have worried as much. I think it will be a case of pay bills and that’s it.

I can see pubs and other entertainment type businesses massively struggling.

We are thinking of getting rid of one of the cars. I work part time and DH is retired and disabled. I think he feels a bit trapped if I'm working and he hasn't got a car but realistically he very very rarely goes out without me so it might be a last resort mental health wise.

You can't expect to earn more, or even the same, for working fewer hours.

Err ok

We used to be pretty close to the middle of median household income in the UK. We're now in the bottom 17% having lost over a quarter of our income in the last two years. With everything increasing in price - and I don't believe this will be temporary - I'm really worried. And it's already changing how I shop, while I used to pop into our local independent shop I can't justify spending a bit extra when Tesco is cheaper, if enough people do the same that shop won't stay open.

I've been getting most of my clothes second hand for years, don't spend much on myself health and beauty wise so nothing to cut there - I don't wear makeup, have a skincare routine or have regular haircuts, let alone eyelash extensions or my nails done. We don't have holidays.

And the frightening thing is, what's going to happen to those people below us income-wise? We can probably scrape by if we're careful, and we are lucky enough to have a small pot of savings, though I'm conscious that if we have to spend them we're unlikely to be able to replace them in the foreseeable future, if ever. Lots of people have nothing left to cut and have no savings.

Most takeaway coffee is rank. We have a decent machine at home and at my work (DH WFH most of the time.) I only buy about 3 takeaways a year if I'm desperate.

I'm a teacher and I'm seriously worried about a lit of our families. Ultimately the children lose out even though in most cases the parents will make sacrifices for them. The stress and anxiety caused by debt and the ncrease in domestic violence, drug use and crime as a result of this will affect the entire population but of course the poorest will bear the brunt.

@Invasionofthegutsnatchers

Most takeaway coffee is rank. We have a decent machine at home and at my work (DH WFH most of the time.) I only buy about 3 takeaways a year if I'm desperate.

I'm a teacher and I'm seriously worried about a lit of our families. Ultimately the children lose out even though in most cases the parents will make sacrifices for them. The stress and anxiety caused by debt and the ncrease in domestic violence, drug use and crime as a result of this will affect the entire population but of course the poorest will bear the brunt.

I have to say the Costa coffee on the motorway wasn't great at all even if it had £1 a cup.

It is scary for alot of young families, I can't imagine how some are going to cope. I remember the feeling from the 70s, the fear when the electric or gas bill came in and the smallest treat being a distant possibility.

www.ukfinance.org.uk/news-and-insight/blogs/negative-interest-rates-dont-rule-them-out

Inflation plus negative interest rates, that will be a double whammy for some.

Although you obviously need money to buy a coffee machine.

There are so many examples where being poor costs you money and this is one of them. If you always have instant coffee at home then a Costa is a treat.

High street banks would collapse surely? I for one would take out every penny if that happened.

@swallowedAfly

High street banks would collapse surely? I for one would take out every penny if that happened.

Take out every penny and do what with it stuff it onto your mattress and make you a prime target for a burglar

This is happening globally, do we have a global tory government
If war begins in Europe again, there'll be more changes, that'll be Boris's fault too I'm sure
The disruption from the pandemic and the measures advised by the scientists will come at a cost for a minimum of 5 yrs. Get used to it, no more £2 chickens or having the heating on 24hr a day at 30 degrees

Govt's across Europe are taxing energy firms and using the monies to soften the blow to households - the UK has chosen not too, indeed North sea oil companies have received almost 3billion in rebates to decommission old rigs, they ve made huge and unexpected profits.

Boris would love a war and if he can stir the pot, he will, fortunately no one in Russia, Europe or the USA takes him seriously, as his latest comms director said "Boris isn't a complete Clown"

@swallowedAfly

High street banks would collapse surely? I for one would take out every penny if that happened.

No you wouldn't, the banks would have no money to hand out, we'd have economic collapse, hyper inflation and what money you did have would only be good for lighting a fire with.

Take out every penny and do what with it stuff it onto your mattress and make you a prime target for a burglar

Buy gold and hide it carefully? It's what people have traditionally done when they think the situation might get rather precarious. It's got disadvantages, but it's an option.

@Invasionofthegutsnatchers

Although you obviously need money to buy a coffee machine.

There are so many examples where being poor costs you money and this is one of them. If you always have instant coffee at home then a Costa is a treat.

The cup I had wasn't a treat and I only have instant at home.