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?

Nice to see you find Brexit and poverty amusing.

Our gas and electric has doubled to £200.

Our mortgage deal ends early next year and currently the cheapest deal I can find is £200pm more than we’re paying now.

Our council tax went up to £290 a month last year, from £260. So god knows what that will jump to in April.

We both have good jobs but bills going up by HUNDREDS of pounds a month means yes, this is a crisis.

Personally I don't think my family will be in crisis, but i am worried for the increase in electricity/ gas and the general state of the economy.

I'd be surprised if we didn't see riots on the streets by the end of the year. What have people got to loose - life is shit for many atm

Isn't this always the case though? If there was a crisis which genuinely caused hardship for the majority of the population, then the poorest 10 million would be destitute and probably starving, so in any crisis lots of people will basically be okay (you need something on the scale of war to affect everyone). So much of how we perceive a crisis is, for most of us, due to the media, as often we don't experience it directly (for example, I don't know anyone who has died of covid or even been seriously ill, if it wasn't for the media I wouldn't have a clue it was serious). Most people (including me) really struggle with stats once the numbers get big - it's hard to differentiate between a million people being affected, or five million or 10 million. It's all just big numbers! Same with the economy- once we get to talking billions most people haven't got a clue what that actually means in real terms. If the media decide to pick something up (like "immigration") people can get a massively skewed and unrealistic idea of the scale of the problem.

Wait until October when your energy bill goes up by 64% and again in January and then again in April. Wait until the interest rates hit 15% like they did in the 80s and families start losing their homes and social services start taking children into care because their parents can’t afford to feed them and have the heating on because that’s the reality we are facing.

Food inflation in this country has hit 30%. This isn’t going to end until the energy companies are renationalised. Big business and the energy companies are seeing this as a free for all and increasing their prices way about what they need to out of pure greed. It’s called profiteering.

This will be the end of home ownership for most people. We will end up renting from investment companies such as vanguard and black rock. How many members of the government stand to benefit from this situation? I’m willing to guess quite a few.

I agree OP, and I think it bears saying. There is a very strong narrative on Mumsnet that "everyone is struggling" and it simply isn't true. I've lived long enough to know things have been worse and things have been better. The 1970s were tough, the 1980s were very polarised, interest rates were out of control in the 1990s, we were told to expect global financial collapse in 2007, and in another 10 years we will barely remember this.

(That doesn't mean I don't think the cost of living crisis isn't a genuine crisis, just that I'm not surprised that lots of people are fine.)

We are def feeling the pinch. On low income and will rely on the government help. £400 energy payment, plus another £650 as we are on tax credits and also the Welsh government are extending the winter fuel allowance(£200) to those on tax credits.

So we will be OK because of that. Without that we'd have to cut out the kids after school activities. We would be able to heat and eat but with only a little left over for kids clothes etc and everything else.

That’s because we haven’t reached that point yet. This is just the start.

in another 10 years we will barely remember this.

I’d like to think you’re right. Unfortunately I think in another ten years we’ll still only just be emerging from what’s to come. Perhaps my memory is better than yours.

I am working ridiculous hours and still skint. But then I have kids who never stop eating and need data/money for spirts/pocket money etc. bad timing doesn’t quite cover it

Perhaps my memory is better than yours.

Clearly it is not, if your memories of past economic fluctuations are not strong enough to help you keep current events in perspective.

I think it will affect everyone.

I had a bill come in yesterday for electric and gas. It’s looking at about 4/5k for the year.

We are actually renovating our house so haven’t had electric on.

We are living in a studio which is one room for everything. It’s super efficient energy wise and we barely had the heating on - which is wet underfloor and very efficient. We are running lights in one room, one computer, one tv and charging devices (2 tablets and 2 mobiles) for two people. We have no kitchen and are using a fridge freezer, a microwave, stove top travel hob and an air fryer.

People won’t be able to afford to work in supermarkets or as carers - anything minimum wage really. I am on maternity but have done the maths and would be better off not going back to work and going on UC.

It’s going to get tough out there and MC will get hit.

We will manage, as we have stable jobs, a small mortgage and savings, but most discretionary spending and 'treats' will stop. This will impact on the local businesses we currently use - eg: independent coffee shops, restaurants, yoga classes, etc. We've already cut down on lots (well, I have, DH is slower to tighten his belt ) so I've not bought any new clothes at all this year, no cosmetics, no haircuts, etc. Instead of employing local contractors to do work to the house or garden, we will either do it ourselves or, more likely, not do it at all. So we will not be contributing to the local economy and more businesses will close.

DS is off to university in Sept so some of our bills will fall a bit when he goes, but equally we will be supporting him financially as well.

Petrol and energy prices are my biggest worries. I WFH most of the time but DH has to drive to work (literally no public transport available) and despite our best efforts to increase the insulation, the house is COLD in the winter. I am investing in heated throws for all of us (ds included as he will be in a rented house) and an airfryer to try and keep a lid on the worst of the price hikes.

We live in a deprived area of the country and there is already a huge amount of poverty. I'm going to up my donation to the local foodbank, but if I'm really really honest I worry about increases in crime etc as people get desperate. I feel awful for saying that but there we go.

So to answer your question OP, no I don't forsee us being in crisis, but I am not looking forward to winter at all. It will be constrained for us, and unremittingly awful for many others.

It is a crisis for many people. I work with families who are already skipping meals and unable to pay all their bills.

And to a pp who says that the media is blowing this up - they really aren't.

Mumsnetters are lucky, they have a buffer in their income, they can cut out things, even if they aren't living in luxury. This isn't the case for many people in this country.

I come from a family that lost every penny in a 90s recession. We lost the roof over our head and I will never forget that feeling. But as an adult, I am very lucky as DH earns six figures and I earn a v good day rate. However - first world problem alert - both jobs are vulnerable to a recession. We have parked our plans for a ‘final forever’ house as it would mean taking on a mortgage that would cost three times as much to service as it would have a year ago. Basically, if high income people like us are adjusting our plans and spending, it’s really going to hurt those on the breadline. It’s giving me shivers as I remember what that felt like. I do think there may be civil unrest unless something is done.

It’s good enough to recognise just how bad things were and I’m realistic enough to recognise this will be at least just as bad and very possibly far worse. Minimising is just sticking your head in the sand.

The rising energy and food bills will be painful for our household, but we won’t be in crisis as such. I think I will have to go back to work from maternity leave full time though, rather than part time as I originally hoped, but I wouldn’t call that a crisis.

But we will only be ok as long as we both hold onto our jobs. The thought of losing our jobs in the face of rising interest rates and energy bills makes me feel queasy.

I think this sums the situation up pretty accurately.

It's still a crisis because just being alive shouldn't be this hard.

People working full time should be able to afford food, shelter, to start a family. Or to afford being single. And to save, considering were always told we should have living expenses saved up.

It's ridiculous how hard it is to have a nice quality of life unless you have a good job, no kids and are coupled up.

It's the summer for me too. Hasn't stopped British Gas's from doubling my gas and electric DDs to £330!!! And I was in credit before - a £190 DD last month for gas which I haven't used! No heating - using the gas oven a once a day for about 30- 45 mins at a time !!

I don't have £330 a month to pay gas and electric bill- I am a lone parent of 3DCs. Both older ones work part time jobs.

So yes- it is biting this increase in cost of living . I'm saying no to using my car where my teenage DCs can catch a bus or a train, as it costs me £85 instead of £60 to fill my car. So that seems 35% more expensive than usual and my mortgage has rocketed as I can't fix the rate. An extra £180 a month and still going up I expect .

Food bills are higher and we are living on cheap food that I am stretching out. I'm losing weight rapidly as I'd rather DCs eat before me.

So I'm not sure where that extra £300-400 a month will come from.

It's great if you have two wages coming in and you're not supporting everyone on one wage or has carefully budgeted with only a little left over spare to set aside each month, and now in minus at end of each month. I'm picking up overtime where I can from work. My son (at Uni) is struggling with extra costs too. I've exhausted all my savings over past 6 months.

I'm absolutely terrified. I don't know how I'm going to manage.

I'm an unpaid carer living with my disabled adult child. We have no luxuries at all including haircuts, takeaways etc. The gas and electricity has risen from £78 before April to £175 now and will be around £300 from October.

The food shopping is rising rapidly. A pizza that my daughter likes was £1.75 earlier this year, it's now £3. I can't eat gluten and a small loaf of bread has just risen again to £2 when it was £1.75 four weeks ago.

I can only afford to put £20 petrol in my car per month and its obviously not going very far on that. The car spring broke 3 weeks ago and I needed to find £470 to repair it.

Saying all that we are not in as bad a position as some for now for which I am extremely grateful.

I agree OP, we are very lucky in that we haven't had to cut back on anything as yet. We aren't very extravagant and don't have a mortgage or car loans so appreciate we are in a very fortunate position to start with.

Looking at friends/family and the amount of people in our local bars and restaurants, you wouldn't think there was any crisis imminent at all.

I'm dreading the increase in energy prices.

We're just about ok at the moment, I've had a small payrise which has helped and we've changed the food we buy to cheaper brands, but we spend too much on food partly because DS is suspected to have ASD and is limited in what he will eat.

DS also limits extra work either of us can do, or even looking for different jobs - for example I couldn't work evenings as bedtime can take 3 to 4 hours. Throw school refusal in and violent meltdowns that means we don't think it's safe to have only one of with him...

Come October were looking at our energy bill going up to 230-250ish and frankly I don't know how we'll manage at that point.

Do you mean will more than half the population be affected by the affordability crisis, @buzzheath ? If so then by answer would be 'yes'. Will more than 50% be in severe financial difficulty, that seems less likely.

At present, only the less well off section of society are really struggling but that is still a lot of people. That segment will increase with time.
We have only just entered 'the cost of living crisis'. Things will get much worse in Winter. As you know, energy prices are set to rise again in October and most of us will be using far more domestic energy by then. This will be combined with increasing costs of everything but particularly essentials. In addition, interest rates are continuing to rise which will affect all borrowing (both individuals and businesses). Most people will find that their essential bills rise by several hundred pounds/ month. Some people can't afford that and will default. Most will cut back on their discretionary spending or saving significantly to make up the short fall. As others have said, this will have a knock on effect on multiple small businesses eg beauty salons, boutiques, cafes plus very large sectors such as travel, retail, hospitality. It would also be expected to affect the housing sector as people change their minds about moving to larger houses and simply can't afford asking prices due to increased costs and more expensive credit combined.
Families may be able to reduce their discretionary spending by a few hundred a month by cutting travel or socialising or trips to the hairdresser but the businesses will not survive if millions are cutting back at the same time. This will lead to more businesses failing and more people being made redundant which will add to the percentage who are struggling, resulting in them spending less, etc.