Read on for the story about Manchester City fans raising £15,000 to fund a food bank, a teenager with MS who was forced to turn to food banks and is fighting for a key change to universal credit, and why climate change means food prices are soaring. 

Good morning. It’s Isabella here, reporter at The Big Issue, welcoming you back to Survival Guide: the newsletter bringing you everything you need to know to navigate the twists and turns of the cost of living crisis. Hope you are all doing well this week.

Still in the midst of their long summer break from parliament, Rishi Sunak and his ministers have been celebrating the drop in the inflation rate announced this week. There is even a nifty graphic to go with it (and we all know a nifty graphic is the best way to start a party). 

But is the fact that inflation dropped to 6.8% really something to boast about? Is this finally the end of the cost of living crisis?

Sunak has said his government will halve inflation and, yes, the country may well be on track to getting to that 5% figure by the end of this year. But the PM neglects to mention that inflation was already forecast to halve before he made that pledge, and the drop for July is largely down to the sharp fall in gas prices as opposed to clear actions from his government. 

Here’s a reality check: prices are still rising and by a pretty high rate at that. Food prices are far worse, having increased by nearly 15% in the year up to July. And as ever, the people who are hit the hardest are the poorest, who spend a greater portion of their monthly income on essentials like food than anyone else. 

As Alfie Stirling at the Joseph Rowntree Foundation points out: “The reality is inflation of 6.8% will bring little respite to the 3.1 million low-income families with children already making sacrifices on essentials like food, basic toiletries, and adequate clothing.”

And while headlines have chorused about record wage growth, earnings still haven’t caught up with inflation in real terms. Brace yourself: real wages compared to prices are not expected to return to 2021 levels until 2027. Check out our explainer on when the cost of living crisis will end for more details.

Rather than boasting about the fact that prices are still rising, charities and campaigners are calling on our multi-millionaire prime minister to turn his attention to mitigating the impact of inflation for ordinary people. 

That means ensuring that the poorest households are paid enough to afford the essentials – at the very least – with a stronger social security system. And it also means ensuring that public sector workers are paid enough to live. 

Unite general secretary Sharon Graham puts it strongly: “The government, the Bank of England, and profiteering corporations will try to use today’s inflation figures to tell people the crisis is over, but workers won’t be fooled while they see prices and profits continue to rise faster than wages. Until policy-makers stop attacking wages and take on the corporate profiteers there will be no end to this cost of living crisis.”

Want to know more? Check out this video from Smiley News where I spoke about some of the ways policymakers could tackle poverty alongside a panel of brilliant women from charities Save the Children, Action Aid and the Felix Project.

Here’s more of what you need to know this week…

Need to know basis

🌡️ Heatflation. Food prices may increase further as an unprecedented heatwave wilts Europe’s crops this summer, experts warned last week, but scientists are working on a solution. The pressures on global supply chains are likely to bring up inflation even further. Healthy diets are also at risk. 

💰Paltry pay. Public sector pay has fallen sharply in real terms (by much more than in the private sector), according to this new report from the Resolution Foundation. Until they catch up, it will likely mean more strikes and disruption to our essential services for the foreseeable future… 

🌪️ Debt spiral. The number of people seeking debt advice has soared as debt charities urge families struggling with cost of living to avoid loan sharks. Missed payments on essentials bills are now high as they were over the winter, according to the BBC.  

If you’re struggling, seek free debt advice and reach out to your bill provider for help. We have advice to finding help if you’re in debt here. 

🪧 Disability benefits distress. Disabled and seriously ill people are missing out on an estimated £24 million each month because of a backlog in the disability benefits system, Citizens Advice has warned. More than 430,000 people are waiting for a PIP review.

Following our reporting on the disability benefits system, scores of people have written in to The Big Issue. George Mitchell is one of them: he told me the DWP refused him PIP and took universal credit deductions because his landlord told them to. 

And a survivor of physical and emotional abuse explained to me that her assessment and appeals process has been traumatic – leaving her curled in a ball and begging to go home in one assessment. They are both calling for change. 

⚽ Man City heroes. Manchester City fans responded to a row over the Community Shield’s kick-off time with a boycott that raised almost £15,000 for a Manchester food bank. Read the story here.

✊ Teen fights for change. A 19-year-old with multiple sclerosis was forced to use food banks because a government policy leaves disabled and severely ill people waiting months for their full universal credit payments. Now she is fighting for change so that others get the support they need. Sign her petition here. 

❌ No money left? Keir Starmer’s Labour party is becoming more reluctant to splash the cash if he becomes prime minister, claiming “there’s no money left”. But is that true? My colleague Greg Barradale asked the experts. 

🏦 British Muslims face banks. A fascinating – and shocking – article in Bloomberg about the treatment of British Muslims by UK banks. One in 10 don’t have a bank account because of the barriers they face. They call it a “broken system” which “ruins lives”.

🧶 Granny privilege. Grandparents reportedly save families £96 billion a year in childcare costs. Pregnant then Screwed tweeted in response: “There are so many layers to this, but we can’t help but think about all the mums and parents who don’t have the grandparents and family who can help. Affordable childcare isn’t a privilege, it’s essential.”

🪩 Lights out for nights out. Young people are cutting back on clubbing, according to ITV. More than a third of Brits have reportedly reduced the number of times they go on a night out (and not just because of the sticky floors and overpriced drinks). 

📚 U-turning on uni. Young people are being put off going to university because of the cost of living crisis, The Mirror reports. A study by Co-op and Barnardo's found children are having to prioritise basic needs over long-term aspirations. The organisations are calling for greater social mobility and support for kids from disadvantaged backgrounds.

🤝 Helping hand. Do you want to support good causes in the cost of living crisis? The Guardian has a guide to helping out regardless of how much cash you have to spare. 

Like what you're reading? Let people know by going to our sign-up article and sharing it on your social networks! You can also sign up to our 'Working on It' newsletter, about making work better, written by my colleague Evie Breese.

On a cheery note

Do you remember Carly Burd? Her allotment, which she used to feed her community in the cost of living crisis, was sabotaged earlier this year (you can read more about that on Bigissue.com here) but her story has now become one of hope. 

The community project has doubled in size thanks to the overwhelming donations she received of more than £250,000. Burd has helped feed 2,164 people, up from about 1,000 before the incident. Read the update in this BBC piece. 

Saving those coins

Pay what you can! There are events and venues across the country where you can simply pay whatever you can afford. The National Gallery in London is extending its ‘pay what you wish scheme’ for some of its major exhibitions, including its Frans Hals showcase next month, so you can pay as little as £1 to see some historic works of art. 

There are theatres across the country where you can just pay a small amount to get in – like the Nottingham Playhouse. Or you could get cheap food at ‘pay what you can’ restaurants and cafes – like those run by the Real Junk Food Project. Just search for ‘pay what you can’ events near you on Google and across social media. 

Dates for your diary 📅

6 September. A living standards election? Event by the Resolution Foundation with speakers including Kelly Beaver, chief executive of Ipsos and journalists Nick Robinson and Mehreen Khan. 9.30pm, online or in person at 2 Queen Anne’s Gate, London, SW1H 9AA.

7 September. Austerity and Deprivation: A Day of Discussion, a conference discussing the intersection between poverty and deprivation. 9am, Greenwich University, 10 Stockwell Street, London, SE10 9BD.

14 September. Citizens Advice September cost of living briefing. 12pm, online.

18-19 September. Action on Poverty Conference, hosted by Staffordshire University Action on Poverty and Hardship team. 5pm on Monday and 10am on Tuesday, Catalyst Building/ Science Centre, Staffordshire University, Leek Road Campus, 249 Leek Road, Stoke-on-Trent, ST4 2DF. 

17 October. The London Child Poverty Summit 2023, hosted by the Childhood Trust and London Child Poverty Alliance. 9.30am, Regent Hall, 275 Oxford Street, London, W1C 2DJ.

Anything I’ve missed or any events which should be on our radar? Let me know on isabella.mcrae@bigissue.com

Catch up 📺

For this week’s catch up, you’ll have to tear yourself away from your screens and head out to an art exhibition. The Drummond Street Artists was founded by London artist Geraldine Crimmins to give people experiencing homelessness a place to make art. Now their new exhibition is creating a buzz in the art world, and you can see it at the Old Diorama Arts Centre until 28 August. 

Sunny side up 🌞

Oh, to be an otter and to have the time to sleep during the day.