Cost Of Living: What You Need To Know

The latest figures show inflation in the UK has now reached a thirty year high of six point two per cent.  And it’s predicted that the impact of the war in Ukraine could see rates climb even higher to 8% later this year. Datshiane Navanayagam reports on the cost of living crisis that has been growing for years, and is now worsening rapidly.

We meet seventy nine year old Sheila who is worried about rising energy prices and says she hasn’t used her central heating for over a year. Campaign groups are warning that increasing living costs will lead to many more people rationing the energy they use, forcing them to make difficult choices, such as heating or eating. 

On 23rd March, Chancellor Rishi Sunak announced that the government is increasing the household support fund by five hundred million pounds to help local authorities support those most in need. But he has been criticised for not increasing Universal Credit and failing to do more for low income households.

The government also revealed that a planned increase in national insurance will still go ahead in Spring, but the threshold will now be raised by £3000, meaning 30 million people will pay less tax. Additionally, the government cut fuel duty by five pence per litre but with prices at an all time high -  the cost of fuel remains a huge concern for those relying on cars for their jobs and other essential journeys.

The government failed to introduce any new measures to prevent the upcoming energy price cap increase of 54% from directly hitting households in April. Without some form of intervention, experts warn typical gas and electric bills could spiral as high as £3000 per year.

We meet mother of two Sade who is worried about whether she will have enough money to top up her electricity prepayment meter. Chef Miguel Barclay shows her how using a slow cooker could help her to reduce the energy costs of feeding her family. Slow cookers can cost as little as fifteen pounds, and only use as much electricity as a lightbulb. Cooking in this way could save Sade as much as 75% on the costs of making meals for her family.

Food is another area where savings can be made if you know where to look. Shops known as social supermarkets are becoming increasingly common across the UK. They are able to sell food at heavily discounted prices, as it is donated or bought in bulk cheaply from the big retailers who can’t sell it themselves. For example, products that are past their ‘best before’ date.

If you don’t have a shop like this near you, there are ways you can get cut price bargains in regular supermarkets. If you scour the reduced section in supermarkets at the right time of day you can make savings of up to 90%. You can also use surplus food apps to find cheap leftover food that is being given away by shops in your local area.

Keeping food bills low is likely to become increasingly difficult though. Russia and Ukraine are fundamental to world food supplies, and the war has sent wholesale oil and gas prices to record breaking levels. The impact is being felt at every stage of the food supply chain. Supermarkets try to keep food prices competitive whilst also generating enough profit to cover wages and pay shareholders. We are now seeing some retailers closing cafes and cutting back on staffing costs.

Unicorn in Greater Manchester though is a supermarket with a difference…

A government spokesperson told Tonight…

“We’re putting billions of pounds back into the pockets of hard-working families across the UK and we’ve taken action worth over £22 billion over the next financial year to help with the cost of living”. 

You Can watch Cost Of Living: What You Need To Know on the ITV Hub by clicking here.

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