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?

It's easy to say the only the wealthiest will be immune but I don't think you have to look exclusively to the top 1% to see a continuance in luxury expenditure.

Instinctively, I expect the majority of the top 10% will sail through without any lifestyle adjustments. I could be wrong but I can't see any easy figures to confirm or refute that. Happy to look at anything that attempts to answer the question.

I certainly don't think 99% of the population will be scrimping.

I expect the majority of the top 10% will sail through without any lifestyle adjustments

Top 9% here. We’ve gone down to one car, have reviewed our subscriptions and cancelled some, alcohol has become an occasional treat and we no longer eat out. I don’t have my nails done any more. Trust me, we’re feeling the pinch. Anyone whose mortgage deal ends will find their payments go up massively - and the bigger the mortgage the more it will hurt.

Well im not top 10% and we are fine, lots of wiggle room. Maybe because we already only had one crap car, not bothered about nails etc anyway and i know my skills will always be in demand.

More homeowners own their home outright than who are mortgaged and this section of the population won't have any concerns about rising interest rates beyond some hope they will see a better interest rate on their savings. Then there are others who are long enough on the ladder that they have modest mortgages. These people with good levels of equity are far less vulnerable than those with bigger incomes but with far more debt.

I was really surprised when I found that out about mortgage holders vs outright home owners.

It's not by a huge percentage, 54% to 46%. But when 65% of the housing stock is owner occupied that's not an insignificant number of the people who don't need to do anything to outrun this arm of the cost of living crisis.

Many many older people/ pensioners own their own homes outright and have zero savings and low fixed pensions. They are asset rich and cash poor. and whilst aren't affected by interest rate rises, a lot seem to enter into these awful equity release schemes to get by.

Well we own our home outright and we are definitely going to struggle and DH earns a higher than average salary. I am self employed and have just lost my biggest contract.
18 year old off to University so will need to sub. 16 year old off to College and as SEN course not local and we have to pay transport. 2 ND kids with additional expenses but no DLA. We applied and were turned down even on appeal.
Already talking about wearing jumpers instead of putting heating on etc.

Wait til January then it will bite for most.

It will surely depend on a combination of factors, not just the top 10% of incomes. There is a big difference between wealth and income too.
You could have a family in the top 1% who spend all their income and are in debt, in serious trouble even if they are not made redundant vs a retired person on a much lower salary but with no mortgage, dependents, etc who can manage.
Some older people such as those who have used equity release and are paying high interest rates or those who are cash poor but living in a large house and unable to afford the bills now could also be in trouble.

@PuzzledObserver you are of course correct that the last 2 months are not 100% typical as little heating used. I'm expecting it to be just over double when heating kicks in- one thing I will be doing though is turning off radiators in my spare bedrooms unless needed which I never used to do - on everything else we are reasonably efficient anyway- leds everywhere, probably will get a heated air dryer too - if my bills double we would still be fine , mainly because I don't have kids at home to feed these days , clothe, entertain etc- but I appreciate others may well struggle

Crisis, what crisis, Wembley stadium full, high street jammed packed Saturday, Walked the dogs Saturday evening, was going to have a drink on the way home, all 3 pubs we passed on the way home, car parks jammed, even parking on the road, ( all mostly food based ) look at the vehicle’s and caravans at Dover, the amount at airports trying to get away on holiday, no evidence of a crisis yet

You do realise that the people that are genuinely struggling will have been struggling before now and won’t have been doing those things anyway and now they’re even deeper into poverty? Just because you see people doing these things doesn’t mean there aren’t whole sections of society who are seriously fucked.

Afterfire

As I said at this particular time, I have seen no evidence of a crisis, The football season starts next week, stadiums will be full, The festivals and concerts, have sold out, maybe it might get worse in the winter, but as yet no evidence

The worst of the crisis hasn't even begun, yet, though.

And we all know how carefree a lot of people are regarding debts, impending mortgage rate rises, bills, etc. A lot of people won't have even thought about what's coming yet:if they've got money today, they'll keep spending it.

(Obviously notwithstanding that many others are already on their knees.)

The worst of the crisis hasn't even begun, yet, though.

Exactly. Interest rates are pretty much guaranteed to go up on Thursday and the next tranche of energy price increases isn’t until October. Anyone whose fixed rate for either their mortgage or energy expires in the next few months is going to get a hell of a shock. Double whammy if it’s both.

Yes, it's only really begun for the poorest group so far who will obviously already have cut eating out, Netflix, etc. The next rung or two up are worried and I'm sure many, if not the majority, have started cutting back a bit. Also, as someone else said, some are borrowing to get by so that won't be visible at present.

Remember, it is Summer when people tend to spend more, go on holiday and generally have fun in the warm weather. Come Winter, things will start to look different. We all know that energy prices are set to rise just as the colder weather starts and then will rise again in January. A lot of families simply can't find several hundred extra for mortgage/ rent plus domestic energy, increased petrol to get to work and increases in food. Some can but will cut discretionary spending with further knock on effects as has already been discussed.

Just because you refuse to acknowledge what is under your nose, doesn't mean you can pretend it doesn't exist @Unphased.

Despite spelling this out for you upthread, it still doesn't seem to have registered with you that 4 million children live in poverty in the UK. Other people going to sports events & on holiday doesn't put food in those childrens' mouths. Nor will it heat their homes this winter.

I think until autumn /winter sets in and people start using heating more that they won’t reliese till then the extent of how bad it can get

I know someone who manages a popular bar on a busy street in a prosperous northern town. They look busy, but he said they are not as busy as they were pre pandemic. They have had to introduce special offers to attract people, plus they aren’t spending as much. Think ordering half a larger rather than a glass of wine.

KettrickenSmiled
As we have seen it is only the very few that at this time seemed to be affected by this so called cost of living crisis

On the contrary the last few times I've been into the city centre I've remarked how unusually quiet it seems compared to normal. Places that would have been five deep at the bar no or very minimal queue . Shops that you usually can't move in very easy to get round . And this is a major city

It is the 'very few' if you live and mix in very privileged circles yes

t is the 'very few' if you live and mix in very privileged circles yes

I live in a socially deprived area - people are cutting back yes and few people who were coping are now struggling but mostly it's on the horizon everyone can see it coming and are worried but it's not here quite yet.

City centre is defiantly much quieter every time we go up.

Food prices are up and talked about - you buy less and cheaper options - already at the cheapest supermarkets there are fewer options to save.

Every bill is more - often just a bit - but it's a slow creep with a big fucking iceberg up ahead that's the winter fuel bills.

Apart from your breathtaking dismissal of 4 million UK kids currently in poverty - WTF are you on, with your "so called cost of living crisis"?
Food is up 10 or 20 %, fuel is the highest it's ever been, & utility bills are doubling. Yet you reckon this is all invented do you, @Unphased?

Is it that you just don't give a shit because it doesn't affect YOU - or are you just goading now?