Good afternoon. Welcome back to Survival Guide. Isabella here.
It seems like we’ve been surviving the cost of living crisis for an incredibly long time. I started as the Big Issue’s cost of living reporter two years ago, when inflation was soaring. At the time, few predicted it would get as bad as it did.
It reached peaks of 11.1% in October 2022, a 41-year high, before subsequently falling.
But inflation has trickled down at a snail’s pace. We only just had news this week that inflation fell to near-normal levels of 2.3% in April, close to the target figure of 2%.
It is a landmark and of course welcome news, but a huge amount of damage has been done. And importantly, prices are still rising. They’re just rising at a slightly lower rate.
Millions of people are struggling to afford the basics they need to live. They have nothing left to sacrifice. They are falling into debt. And the bulk of the government’s cost of living support has come to an end. How are they supposed to cope with rising prices?
Megan Davies from the Stop the Squeeze campaign said: “People across the UK are facing an ongoing cost of living crisis, which for many families is about to get worse rather than better.”
Stop the Squeeze has found that nearly 90% of people reject claims that the cost of living crisis is over.
Davies added: “This crisis isn’t about abstract statistics, it’s about people struggling to put food on the table, pay their rent, and heat their homes – it won’t be over until the millions of people who can’t do these things have greater economic security.”
Typical annual household energy bills in 2024 are 67% higher in real terms than July 2021, according to the Resolution Foundation. Meanwhile, food and non-alcoholic drink prices are 32% higher.
Those high prices of essential items impact the poorest most of all. That’s because it is the poorest households who spend the largest proportion of their income on the basics they need to survive, like food and eating.
So what can be done about it? The Big Issue has laid out a blueprint for change ahead of the general election, calling on the government to end poverty for good. Find out about it and how you can help later in this newsletter.
It’s also, as always, worth pointing out that there is help available and you might be eligible for more financial support than you realised.
Head to the end for details on applying for benefits and other places you can get help as the cost of living crisis continues to be felt by millions across the country.
If you have a story to share, we want to listen. Get in touch at isabella.mcrae@bigissue.com or share your story here.