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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be concerned with the cost of living crisis?

126 replies

tontown · 31/03/2022 19:28

Admittedly I live in a naice area of London so perhaps it's a bit of a bubble. I'm very anxious about the cost of living crisis & if you read the papers lots of comments along the lines of "worst drop in living standards on record" etc. I've been much more cautious with energy usage & am conscious about wasting money & saving what I can but then I look around & see restaurants are packed, house prices keep rising & wonder if I'm being over cautious.

OP posts:
WulyJmpr · 31/03/2022 19:35

There's a huge gulf of inequality in the UK. Lots of families will really suffer whilst for a significant minority who already had a large surplus each month, and perhaps lockdown wfh or furlough savings, it will be irritating but not matter too much.

Original poster
tontown · 31/03/2022 19:39

I do get that but is everyone (bar the global elite) really immune? Doesn't it all have a knock on effect if there's less money or do you think the gulf is so wide that it doesn't matter?

OP posts:
Invasionofthegutsnatchers · 31/03/2022 19:41

Some people are in denial and living on credit. Or dipping into savings. Others have enough to absorb the price hikes for now.

Munchyseeds · 31/03/2022 19:47

It's not even really started Yet, it will affect most people and won't be pretty
I'm worried for the future.

PositiveLife · 31/03/2022 19:47

I think there's a lot of people that it hasn't really hit yet - just observations from the circle of friends I have.
Energy going up tomorrow and probably another hefty rise in October so the increases haven't come yet. Lots on fixed rate mortgages who will only feel the rise after that product ends. If they wfh they won't have felt the fuel rise too much really. Lots are able to drop to cheaper ranges for food. It's not really hit them yet and still living in denial.

twominutesmore · 31/03/2022 19:49

It is only just starting. When people start cutting back on the non-essentials, business suffers and jobs are lost. You are wise to be saving and cutting back.

Manekinek0 · 31/03/2022 19:50

Food has been going up but there will be a delay in the increased cost of fuel and energy being seen in stores. Energy bills are going up from tomorrow (if you're not fixed) and that will hit people hard.

I think you're probably in a bubble though. People who will be hit hardest are those who are just scraping by each month. I doubt they are out in London restaurants.

Original poster
tontown · 31/03/2022 19:51

I'm worried for the future.

Me too, it feels really unknown.

OP posts:
idiotwhoworries · 31/03/2022 19:57

I think it is very concerning, and there surely won't be many who don't feel the hit at all.

People who are comfortable will definitely be buffered, but there will be a knock on effect in terms of how much disposable income or money for savings there is every month.

It's just more shit for everyone, to a greater or lesser degree.

NeedleNoodle3 · 31/03/2022 20:00

I haven’t noticed anything yet but I do worry about the effect it will have on poorer families and small businesses.

Svara · 31/03/2022 20:01

I've been on benefits when DS was younger (now on 20k) so luckily (or unluckily) it doesn't feel unknown to me, I know what I need to do to get by.

It would be very scary if you hadn't had to cut back before, or if you are already on a very low income. Though, for many it may be still going out for Mother's day or birthdays but cutting out regular takeaways, meeting a friend for coffee but not buying one alone, switching supermarkets, things like that.

4intheCorner · 31/03/2022 20:02

I felt the hit straight away. As soon as there was talk of energy bill rising last October it instantly had an effect on my sales. The kind of things I make and sell are the first luxury people stop buying in hard times. My business has been suffering along with others, since January Sad

flower277 · 31/03/2022 20:04

I am very worried. We both work full time but not great salaries.

OliverBabish · 31/03/2022 20:06

I feel it. Been feeling it. I am fortunate in that I can just pick up overtime (I’m a nurse) to keep feeding my family. But others don’t have that and that’s a terrifying thought.

Original poster
tontown · 31/03/2022 20:07

@4intheCorner sorry to hear that.

OP posts:
AliaMac · 31/03/2022 20:11

Experience tells me that once interest rates rise further then there will be a huge impact. Many people just don't have a cushion or savings. Rising living costs coupled with interest rates for credit will be too much to deal with.

If I go back to the 90's my friend lived on credit, monthly credit card, loan and mortgage payments meant no spare cash every month, after living expenses. Nice new cars, great holidays, fantastic tv...but nothing paid for.
Once interest rates started to increase, she couldn't afford to repay the loans each month, was soon behind, debts called in.

She would have lost everything but had some equity in her house due to a move from London to Leeds. She did lose every bonus that the move had created, ( paid for detached house at the age of 25) having to sell her house and move again to a much cheaper area in order to consolidate or pay off all of her loans.

DebenhamsHadSomeLovelyStuff · 31/03/2022 20:12

It's terrifying, people started struggling years ago, how much more can give?

Original poster
tontown · 31/03/2022 20:15

As I said in my OP Ive already got an eye on energy usage. In addition I'm walking as much as possible (gave up my gym membership) & walk to work. I already shop in aldi, I'm not sure where else I can cut back.

OP posts:
Mybobowler · 31/03/2022 20:17

I'm really worried. We have an average income, with two small children. We pay our bills and have a small amount of disposable income, but it's feeling like less and less every month. We don't eat out or buy takeaways, almost never buy new clothes, shop at Aldi, never go on holiday etc.

I'm on maternity leave now but come September when I go back to work, our nursery bill will be 1.5 times our mortgage repayments. Our energy fix will also end then, and I have no idea how we'll absorb these extra costs. We're frantically trying to cut down our spending and pay off credit cards but yes, the coming months and years ahead feel very bleak indeed.

Original poster
tontown · 31/03/2022 20:18

Experience tells me that once interest rates rise further then there will be a huge impact.

On one hand I thought the BOE would only increase them by another 0.5% as they won't want to do too much economic damage. But I guess if people are still spending & house prices rising they may think we can take more hikes. We have a fixed mortgage with a few more years so I'm very conscious what rates may be like in the future.

OP posts:
TangoWhiskyAlphaTango · 31/03/2022 20:19

Nice not naice!

ChiswickFlo · 31/03/2022 20:21

September/October will be rough...
Another raise in energy costs and new uniforms/shoes for school kids...
I'll just leave these here:
www.trusselltrust.org.uk
www.caporg.uk
www.acts435.co.uk

LaurieFairyCake · 31/03/2022 20:23

This month I've earned £500 less than last month (self employed)

It's a huge percentage of my income

Bluetowelsandflannels · 31/03/2022 20:25

naice dreadful word I can't get past it

BulletTrain · 31/03/2022 20:26

I was working for a footwear company in 2008 when the crash happened. Overnight the sales dropped by almost half. We all had to take a pay cut and we never really recovered. Any time there is uncertainty about mortgages, rent and bills, job losses begin in a lot of the sectors that employ a large percentage of the UK workforce - retail and hospitality.