What will actually happen?

[usernamechanged1]

There are many threads on here about mortgage, rent, utility, food prices all going up. I don’t think there are many left who aren’t noticing the financial strain.

So, whilst we’ve all heard “this can’t go on…” and “when will this stop…”, it is continuing to go on and shows no signs of stopping. I’m wondering what we should actually expect.

I feel like we’re heading towards a place where people will be working but literally unable to survive. I appreciate there are people in that position already, so what happens when this is a mass problem affecting a majority of the country.

It’s akin to working an eight hour shift and having 13 tasks taking 1 hour each to do. It’s simply impossible; the maths don’t add up.

Is it out of the realms of possibility that we could see people take to the streets? For crime to shoot up (shoplifting, robberies etc).

I think many of us thought the CoL crisis would be temporary, but maybe it isn’t.

It's not going to help. Most of that 10% increase is going to go to pensioners who already own their own home, who will have a private or workplace pension and the state pension just tops it up. Money, yet again goes to money.

I find it amazing that the government refused to give public service workers a decent pay rise because it will cause inflation, but feel its necessary to give pensioners more. It should have been means tested.

I'm not saying that benefits shouldn't go up, just that the universal increase in state pension makes no sense.

I'm a 40% tax payer. I have a full time job and a part time job (which I also get TAXED 40% on). Many people I know are skint but refuse to do second jobs as they would also get 40% tax rate on it. For me, I see it that I'm still getting more money even if it is taxed highly, for others it's not worth it, but they moan about feeling the COL. I suppose it's what standard of living you are prepared to accept (although I recognise that people who are carers or disabled wouldn't necessarily be able to work more-although I have a disability, luckily I'm able to still work).

Yes the French do which is why I’m in a hotel in France trying to work out a route to the French port without going trough a town/city where they are rioting knowing that my ferry on Tuesday will be cancelled due to strikes leaving me stranded overnight so let’s not turn into people who don’t give a s..t about others and hurt them.

So you’d have been a teenager in the late 80’s when foreign travel did start to take off, by that time most average earners were able to have a week or 2 abroad, the sun did ferry vouchers for £1 so loads of people saved those and camped in France and the canary package holidays were popular and not expensive. Late 70s early 80s I knew only 1 person who went to Florida they actually had a cheese and wine party to show off their slides and loads of people were interested as it was so exotic (they also had a swimming pool so totally different wealth level to the rest of the village) most people had a week camping or caravan by the sea and the slightly better off had b&b or a cottage. This is based on fairly affluent area in the SW.

What evidence do you need? I don't even live in the UK and I can back it up. Interest rates rise and fall, they've just been low for a ridiculously long time. Why do younger people think they are so special that they shouldn't be subject to what has happened to previous generations?

It will spiral downwards.

As each of us spends more on the basics/cost of living/food any disposable income is hugely reduced. So less money circulating in economy. So more businesses shut & jobs lost. Rinse and repeat.

Even families with more disposable income will be spending more on essentials & less on non essential s. So we are all affected in one way or another.

I don't know how families that we're struggling a year ago are coping today - prices have gone up so much.

It's grim.

@Billybagpuss grandma and grandad went abroad twice a year throughout my childhood. Grandma died in ‘89 and had been abroad many times by then. I went to Majorca in ‘82 as a 6 year old and that wasn’t unusual. All our neighbours did the same. Florida wasn’t common until the 90’s but lots of people went to Europe.

Yeah, this. The music was always going to stop at some point.

It's been hyped up.massively on social media too and because so much emphasis is on sharing every boring detail of our lives on social media, people are trying to keep up with people who they see that have lovely clothes etc, yet those people were given it for free by companies.

Fast fashion is a huge, huge problem. Stacey Dooley did one of her shows about it and whilst I can't remember the exact figures, it was something like there used to be 4 fashion drops a year (for the 4 seasonal wears) now, there are something like 300 drops a year.

There are younger women at work who still live at home and can't afford to move out. I know their wages as I pay them, yet their money goes on clothes, shoes and cosmetic procedures (lots of lunch time chat at our place) and then ones that drive are driving brand new cars on either finance or the plans where you have it for 3 years then swap for a new one.

COL crisis wont read the same for everyone. Our gas and electric has gone from 130 a month to £240 but is manageable. We've got friends who bought a house a year before covid for £450,000 got given £120,000 inheritance, extended their house, had a baby, both moved to lower paid jobs and are now worried they won't be able to afford the house at renewal because of the drop in income

I'm in my forties and wear the same outfit multiple times if and when I go out yet I know people who don't.

I definitely think we've been spoiled with cheap and readily available credit and many have taken out finances and debts and now cant afford them. Someone my husband works with has a son who has been drastically affected by the COL crisis and when you listen, to me, he hasn't. What's happened is he is 30, still.lives at home, earns a decent wage (over £35,000) and has had to give back his brand new car and has to chip in a bit more with bills at home and only goes out twice a week now) yes his lifestyle is affected, however not in the same way where someone who has to shop for food on a budget and suddenly that food shop has risen but their budget has got smaller due to having spend more on other living costs.

For some, handing an expensive car back and only going out twice a week is the end of their lives as they know it whereas I wouldn't see that as a struggle compared to someone who is literally deciding whether to eat, to heat their hole or are eating reduced meals so their children can eat.

I donate 4 bags of food a month to our food bank, it's all I can afford and their numbers are increasing and now deliver basic packages each day to their "customers" they currently have over 400 people a month they help out and that doesn't include social workers who come for emergency packs for women who have been rehoused following DV

These are people in our area and our neigjbourhood, yet our pubs and cafes and restaurants are full.

I had a second job in a bar last year and the majority of customers paid on credit cards. I often wonder how many of those were in serious debt compared to how.many used a credit card properly

There will be much more extreme inequality. This government doesn’t care. Look at the recent pension tax changes for the 1%. We need to vote the fuckers out at the next election.

@magicthree evidence that over 55s knew low interest rates wouldn't be around forever but young people did think that? How would you even quantify that judgement. Most young people rent for one.

Why do younger people think they are so special that they shouldn't be subject to what has happened to previous generations?

what does this even mean?

Agree. It should get better with each generation. Progress not regress.

FWIW, a colleague who has an accountant told me their account said that they were expecting VAT to go down in a few months' time.

@Billybagpuss it's still very normal for people to holiday in the UK & when people do go abroad European destinations are the most popular.

FWIW, a colleague who has an accountant told me their account said that they were expecting VAT to go down in a few months' time.

well the increase was meant to be temporary!

@AbreathofFrenchair on that salary though 35k plus could your the son of who your husband Son works with could they really not afford the car? Even though they at home? I suspect there's more to it on that scenario.

I agree with what your saying everything people so accessible has taught people how not to save and put a bit each week.

Does anyone remember the "Provident" man coming each week?

Not with the lifestyle they were living though. The car was over £600 a month plus insurance and petrol. He paid £300 to live at home and this went up to £400 plus he had to pay for travel ticket to work each month as car parking was more expensive and the rest was on night outs, football season tickets and clothes

Holidays abroad 3 times a year and girlfriend he spoils too

Not a clue of what the real world involves.

Open a wardrobe of a woman of 19 in the late 70’s in and I bet anything you would find only the tiniest proportion of clothes and shoes you would find in the average wardrobe of a person of the same age nowadays. We had no choice in the mid to late 70’s stay at home if your parents would have you, if you paid rent to them, or buy somewhere anywhere. No properties unless you could get a council house. Boyfriend & I bought a house 25 miles away from our jobs as that’s all we could afford. We had no washing machine no sofa no carpets. Sick of being told we had it easy. What we had was the ability to make do. Disgusting liver four nights a week for tea. A wedding in the registry office, sandwiches back at our house then a night in Bournemouth.

It means previous generations have also had tough times but the approach has been very different , they dug deep and did what was necessary yet todays young think everyone owes them a living . Far too many people expecting government to be responsible for their welfare.
Young people want new cars expensive phones on tic rather than save . Everything has to be shiny and new yet moan when they can't afford rent or to save a deposit .
Seriously I worked with a 23 yrs old who bought a brand new car but couldn't afford to go out or drive it anywhere because the loan ate up her salary ? Where's the thinking there . Previous generations would have bought an old banger todays young want everything new and now without saving for it . Times are hard now and those decisions are biting .

@Chateau13 I'm not sure what point you are trying to make to me? I simply don't buy the narrative that young people believed interest rates would be low forever.

I'm not sure why this has turned into generational bashing?

What would he know? Accountants know as much about what is about to happen as everyone else.

Unless your accountant friend of a friend works in a Treasury or HMRC VAT policy team then they know fuck all.

There is no planned cut to VAT. I'm also not sure how that would help with inflation, it would probably do the opposite.

It’s turned into the older generation didn’t have it this hard but yes they did. We spent less on material things. How many people decided 5 years ago that they had to have a new car on a PCP, or a caravan on a PCP or a motor home on a PCP never once thinking that food, energy or interest rates would go up? Now that they’ve all gone up they’ve over stretched themselves.

Of course, but my lived experience of the 70s people tended not to. It wasn’t really until the 80s that foreign travel became a popular thing. People would have travelled I’m not disputing that but when I was young I didn’t really know anyone that had been abroad at all.

It means previous generations have also had tough times but the approach has been very different

Has anyone on the thread said previous generations haven't had it tough?

Far too many people expecting government to be responsible for their welfare.

What does this mean though? Who are you referring too? People relying on benefits? Every age group has people relying on benefits.

Young people want new cars expensive phones on tic rather than save

Yes this is where I disagree, I don't think the issues with housing is because of phones on tic.

Seriously I worked with a 23 yrs old who bought a brand new car but couldn't afford to go out or drive it anywhere because the loan ate up her salary ? Where's the thinking there .

Every generation has idiots.

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