The current conditions for many people living within the UK have been ones of sacrifice and uncertainty, a “vicious cycle,” said 20-year-old Michael Holt from Wigan, after losing his job this year.
The highest areas of inflation are within the energy sectors. Electricity prices in the UK rose by over 65% from the previous year, a substantial amount but in comparison to gas prices it seems miniscule as the price of gas rose by over a staggering 120%. ( https://www.ons.gov.uk/
Michael spoke about how he has struggled financially amidst the crisis. “With the way things are at the minute, I feel like I’m picking and choosing between everything.” “It’s a vicious cycle that I’ve found myself in.”
This comes as the increase on energy prices has had added effects on goods and services, with businesses facing increased costs.
Following, Michael spoke on how he had lost his job due to his place of work having to close as they couldn’t keep up with the increase in costs and financial stress.
He said, “to find some extra work has been my main priority.” This led him on to talk about the difficulties he has faced locating a new job.
“I’ve found it difficult; I often find myself needing more experience for a role, however, I ask how I will get the experience if I cannot find work to begin with.”
The indirect effects that energy prices have had on the prices of food and other essentials has ultimately tasked people with categorizing what they class as essential for themselves.
Michael spoke about his fitness journey and how he believes that paying for his gym membership is essential to him.
“The gym helps me to destress, the past three years have been brilliant, I won’t let the current conditions alter that.”
“Some months it can be a struggle to afford, but without it, I think I’d be feeling a lot worse about things.”
Following, The Mental Health Foundation (mentalhealth.org.uk) say that due to cost-of-living crisis, poverty and financial stress will likely rise over the next few years.
To tackle current inflation rates, Citizens Advice provide tips on how to reduce your regular outgoings, visit https://www.citizensadvice.org.uk/ for help and advice on what you can do to help manage costs.
What does the future hold? The Bank of England have stated that by the end of 2023, they expect inflation to fall quite quickly down to 5% and they hope to hit their target of two percent by the end of 2024.
They aim to do this by increasing interest rates, they do admit that this may also lead to people facing financial strain but say it is essential as “low and stable inflation is vital so that money keeps its value.” “It is vital for a healthy economy.”