It’s all we hear about these days – the cost of living crisis in the UK. But what’s it all about? What’s caused it, when’s the cost of living crisis going to end, and how do we cope with it? We’ll answer all these questions here.
The Cost of Living Crisis Explained
We all need a minimum amount of money coming in to live on. We’ve all got to pay for food, rent or mortgage, for our energy bills and for travel to work. But if the cost of these things goes up at a higher rate than our wages, we start finding it hard to make ends meet. When this happens, there’s a cost of living crisis.
What is the Cost of Living Crisis UK?
Here in the UK, we’ve all been seeing the cost of everything going up. The problem with this rising cost of living is that our wages haven’t been going up at the same rate. So, the money we earn doesn’t feel like it’s enough anymore. Where we used to be able to enjoy little luxuries, we’re starting to watch the pennies instead.
What is Causing the Cost of Living Crisis in the UK?
That’s a good question. Here are some of the reasons why this is happening.
- When the Covid-19 pandemic broke out it stopped our normal way of life. We couldn’t buy and sell things like we used to, and we couldn’t go travelling. Then, once everything started getting back to normal, the demand for everything suddenly went up. The problem is that businesses weren’t ready to meet this demand, so it pushed prices up.
- The sudden increase in demand included the need for more energy, like gas and electricity. This happened around the world which forced up the price of these too. And we’ve all seen big hikes in our energy bills.
- In April this year we had to start paying higher National Insurance contributions. This means we’re taking home less money in our wages. Plus, local councils have put up the amount we pay them in council tax. Leaving us with less money in our pockets each month.
- When Brexit happened in the UK, many foreign workers left the country. This left us with a shortage of lorry drivers. With fewer drivers, transport companies could charge more to deliver goods. With these costs going up, businesses have had to cover them by putting up their prices.
All these things have been part of what’s caused the cost of living crisis. The problem is that, because it’s not just one thing that’s making the prices rise, it’s not easy to stop it. But will it ever end?
When Will the Cost of Living Crisis End?
No one can put a date on it. In time prices will start to come down. Or our wages will rise enough for us to be able to afford to pay for everything again. How long it’ll be before this happens is anyone’s guess.
It all sounds a bit gloomy doesn’t it, but don’t worry. Life can still be enjoyed even with a cost of living crisis.
How to Cope During a Cost of Living Crisis?
There are things you can do to help you get through this – here are a few tips for you to try.
- If you haven’t got a budget, start doing one now. It really does make a difference when you know where your money’s going. You can see what to cut back on, like takeaways or some of those subscriptions. Remind yourself, if you can live without it don’t spend on it.
- Have a look if you’re eligible for any grants or schemes that could help with your energy bills. The Citizens Advice Bureau can help you with this.
- Use loyalty cards and discount codes when shopping. You’ll save money by using them. Some loyalty cards even turn your points into pounds which you can spend on what you want. It’s worth doing.
- Think about how you drive your car and make it more efficient. Fill up at the cheapest petrol station. Keep your tyres pumped up to what they should be and try not to carry heavy loads if you don’t need to. Car share where you can and if the journey isn’t necessary, don’t do it.
Remember, you’re not the only one being affected by the cost of living crisis. Everyone’s being hit by rising fuel, energy, and food costs. The difference is how you deal with it.
You can still enjoy life by finding things to do that don’t cost a lot of money. See friends at home instead of going out, play board games instead of watching TV every night. Join a local social media group where people are giving stuff away for free. Who knows what you’ll find – maybe a recycle project to keep you busy?
Life doesn’t have to stop just because there’s a cost of living crisis. We just have to find new ways of enjoying it.
Disclaimer: We are not providing financial advice, these are just tips for informational purposes.
