To think the cost of living crisis isn't really a "crisis" for most people?

[buzzheath]

Not meant to be inflammatory at all. I'm well aware of the hardships that some people and families will face. But for the majority of people in the UK, will it really be a "crisis"? Isn't around half of the population middle class?

In large part, it is to protect the credit balances of customers of the energy companies which went under. The rest of us are bailing them out. If you’re one of them, be grateful.

I don't understand this. My provider shut down last year and I got shifted onto Shell. I was up to date with payments as I assume most customers were, so how are we being bailed out?

Yanbu. Judging by the amount of people going on holiday this summer there must only be a minority of people genuinely worried about the 'crisis'. Anyone who goes on holiday and is then in financial difficulty is an idiot. I say that as someone who has chosen not to go on holiday for financial reasons.

@wheresmymojo

im glad you've got a decent paying job again. I remember your posts during covid.

im obviously sorry things are still very difficult, but I hope it all works out ok for you!

@HotCaterpillar

a lot of people going on holiday are using holidays booked through the pandemic on a use it or lose it situation. Many others are visiting family they've not seen for a long time.

So how about you stop being such a judgemental ...person.

yes, some people who are going to end up in a crisis situation will have chosen to book a new holiday & go. Some of them might just be idiots, but the vast majority probably aren't educated enough to 'see' how badly this crisis might impact them in the future. OR perhaps have just decided 'fuck it' let's take the kids while we can & we'll deal with it later.

there are also the people who currently have jobs & feel secure, that might lose their jobs/become I'll or whatever.

labelling everyone going on holiday who might end up in a crisis situation as an idiot is grossly unfair.

(I've chosen not to go)

If you have a couple of kids, benefits are generous enough that you should be okay.

If you don't have kids, you could easily find yourself destitute if you find yourself out of work, but the labour market is in favour of the worker at the moment so if you want work you should be able to find something. Even if you have to relocate for it.

@Impier

im fairly sure most people with a couple of kids would disagree with you, but I'll leave that to them, as I'm not sure what their benefits are like, but I'm pretty sure not many would agree that the benefits are generous enough for them not to be worried.

How exactly do you think the vast majority of people can just relocate for a job?

mortgages/rent/support/family etc.

If I was made redundant (which is a very real possibility due to what I do being quite time limited) I suppose I could relocate IF I could sell my house & move to somewhere for another job, IF the housing prices were similar & I could buy close to where I needed for my job.

id lose my healthcare specialist, my physio (pist major accident rehabilitation) my GP (though that's getting less important), my wonderful friends & neighbours without which I'd have been utterly fucked after the accident. I may not be able to find somewhere as 'convenient' as I have here (Drs/pharmacy/supermarket within walking distance)

whilst I hope never to have another accident like it, I'm well aware of how easily it happens and how easily my underlying health situation could make me very ill at anytime, so I value my friends & neighbours I can count on (as many of them count on me in difficulties or just to make their lives easier day to day).

our local hospital is a bit of a fucking nightmare, but is apparently one of the top ones in the country, so moving to somewhere else is fairly terrifying frankly.

...and that's only my story!

what do you suppose a couple should do?

what about people who are already supporting elderly parents.

the vast majority of people can't 'relocate' on a whim.

I think you are either really unaware or a GF.

If you have a couple of kids, benefits are generous enough that you should be okay.

What happens when the kids turn 18 and the benefits stop?

If you have a couple of kids, benefits are generous enough that you should be okay.

No, they're not. Living on benefits means living on a pittance. I get disability benefits as well as benefits for 3 children (born before the cut off) and I struggle daily to feed everyone and pay my bills.
I have extra costs due to being disabled such as transport to and from the children's school (I can't drive) transport to appointments, medical equipment which isn't available on the NHS, clothes which are easy to put on and take off because I can't dress myself, I need a firmer orthopedic mattress due to issues with my back. I have to scrimp and save every penny I have to make ends meet and ensure my kids have what they need and I still have enough left over for appointments and emergencies which seeing as I end up in hospital every other month 🙃

Clearly posting to get a reaction. Bored today?

GF, methinks

Wild idea, but maybe get a job?

I know, right! 🤣 I have ' a couple of kid's ' and get no benefits 🤷‍♀️ but there's always some who generalise and sound like a 🥒 in the process....

We’re middle class and we’re genuinely struggling to get through each month now. Fuel is costing almost twice as much as it used to, council tax has gone up, our gas and electric bill tripled overnight, food costs are rising (we already shop at aldi for most things and always have done but it’s even risen there) and we’re not entitled to help with anything at all. I wanted to go back to uni to better myself in September but we’ve just found out I’m not entitled to the childcare grant because DH earns over the threshold so looking like I can’t go, there’s no way we can afford childcare right now. Honestly, some months we have had to borrow from our parents so we can buy food otherwise we’d have had to go to a food bank.

So yeah, it’s a crisis for us and we’re the classic MC family who got by fairly alright before.

If you have a couple of kids, benefits are generous enough that you should be okay.

We have 5 and we’re not entitled to benefits so we’re not ok. We’re not entitled to free school meals, help with uniform/school trips, cost of living payments, childcare grants etc. Since the cost of everything shot up we’re on our arses scraping by each month by the skin of our teeth. If/when gas and electric rises again we will have to refuse to pay it because it will either be that or food. We can’t afford any more increases at all.

Hard for disabled people like yourself if on benefits but for working people, I'm not being funny but the top ups are pretty generous especially since the work allowances went up a lot and the taper rates reduced.

Have you checked recently that you are definately not entitled to UC ? The allowances all went up a few months back so some people who weren't previously eligible may now be ? Worth checking.

You do realize that most people currently claiming Universal credit or tax credits are already working ?? many full time?

I wasn't aware of that seen as the government's own stats show around only 40% on UC are in work (not necessarily full time). So 'most' on UC actually do not work at all.

But the point of the poster I quoted was that if child benefits stop, the only logical way to increase income is to get a job/increase hours as childcare would now not be an issue. I can't see how that's a controversial point to make

Full time Minimum wage is not enough for a single person to live on unless you house share. So if you haven't got a partner to share the housing and bills with your going to be screwed when the fuel costs go up in October.

@TrashPandas I don't understand this. My provider shut down last year and I got shifted onto Shell. I was up to date with payments as I assume most customers were, so how are we being bailed out?

How were you paying, though - quarterly/monthly on receipt of bill, or fixed monthly direct debit?

Most people pay by fixed monthly DD, and the way the companies organise it means most people are in credit most of the time - could be a few tens of pounds, or it could be several hundred, especially if they are big users. I, for example, am currently £98.71 in credit with Octopus, but at one point last October it was over £400. A lot of the companies went bust in September/October time, when customers would have built up balances in readiness for the winter.

When the company goes bust, the money has all gone. But when the customer is transferred to a new supplier, their credit balance goes with them. Someone has to give the new supplier the money so that the customer can start with the credit balance they had with their old supplier, and that someone is the rest of us, through the increased standing charge.

PuzzledObserver Thanks for explaining. What percentage of each individual's standing charge goes towards these credit balances?

Ah, now that I’m not certain of, but I think it was most of the rise in April.

Nearly 20% of the population are pensioners, so around 12m people. Most of them will be on fixed incomes, and will have to make economies. Many, particularly those on just state pension or pension credit, will be very short of money. (My MIL, who gets £197 pw in PC, has been told she will have to increase her energy direct debit to £257 a month - more than 25% of her total income.)

There are around 2m households on Universal Credit, so possibly 4m people reliant on that income. Their income, after paying rent, will be low and they will have to make significant cutbacks. And there are still close to 2m people on ESA, who will also really struggle to meet their energy costs and rising prices.

That's around 18m people who, while they may not be tipped into crisis, will have very little spare money. And when you have very little spare money, unexpected events like having to replace a household appliance can easily tip you into crisis.

I follow Martin Lewis on Twitter and his worried as the new price cap will be going up again in January.
It is so depressing.

What do you mean the "rest of us" are paying for the fact some companies went bust? All customers have to pay the increased standing charges not just the customers who were with a company that didn't go bust.