THE current cost of living crisis has been described as the most challenging in living memory.
Rising inflation is at a decade high, this along with spiralling food, fuel and energy costs is putting even more pressure on already struggling families.
This rise in prices has coincided with wage stagnation, removal of the £20 universal credit uplift and other covid support schemes.
Inflation increased by 4.2% in October, the highest in a decade.
That’s more than double the Bank of England’s target and could reach five per cent by April.
This is down to soaring energy costs,as well as everyday items such as food and clothes getting more expensive very quickly.
It is thought that households face needing to find an extra £442 this winter just to cover energy and fuel costs.
Food costs have also risen, with households facing an average increase of £21 a week, or £1000 a year, for the same basket of goods, compared to a year ago.
In the three months to September, average weekly earnings grew by 5.8 percent when compared with the same period in 2020.
In the same month, the inflation rate for the Consumer Price Index was 3.1 per cent, indicating that while prices are increasing, wages are currently outpacing these increases.
Minimum wage is set to rise by 6.6% in April 2022. However, this does nothing to help those on minimum wage who face increases in bills now.
It also looks like any increase in minimum wage could well be wiped out by the time it is introduced in April.
Despite average wages increasing, many have and still are facing wage increases which are well below inflation.
NHS workers have received only 3% this year, other public sector workers have received less or nothing.
Many workers have received real terms pay cuts for years. The chancellor has already revealed that the public sector pay freeze will be lifted next year.
But any increases offered are likely to fall short of actually being any real increase for those workers.
Many workers have had success recently in fighting back against these pay cuts. Those hailed as heroes and key workers are taking action against the below inflation cut to real pay which is being offered.
Bus drivers have threatened to strike and won higher pay rises.
NHS and public sector workers are also thinking of taking industrial action.
The cost of living crisis has been caused by a number of things: the pandemic, Brexit, rising inflation and the ending of covid support schemes.
Those hardest hit by the squeeze on finances will also see national insurance increases coming next year.
Young people, working families and those on universal credit are expected to be the hardest hit.
Something needs to be done to try and stop this cost of living crisis, pushing more people further into poverty.
Starting points could include bringing back the £20 a week universal credit uplift and a £15 an hour minimum wage.