And now the forecasters are saying the price cap could hit £6000

sienew

MattMattMattUK said:

The thing with the levels that are predicted for October onwards as they are not going to be costs which most people will just blindly keep running up, they will cause behavioural and lifestyle changes, the average bill will not be even close to £6,000 because most people will cut back dramatically. There are predictions of dramatic drops in consumption due to cost increases, people will adjust their usage downward.

I'm not convinced that most people are willing to accept a fall in living standards that reduction in usage would require.

pochase

You are either that comfortable money wise that you can pay the increased costs in all areas, or you will have to reduce cost somewhere.

If you cannot afford to pay for everything you need, you will need to reduce your cost, maybe by reducing energy use, or for example not going into a pub or stop eating out. No matter how you save money it will reduce your living standard.

[Deleted User]

pochase said:

You are either that comfortable money wise that you can pay the increased costs in all areas, or you will have to reduce cost somewhere.

If you cannot afford to pay for everything you need, you will need to reduce your cost, maybe by reducing energy use, or for example not going into a pub or stop eating out. No matter how you save money it will reduce your living standard.

I am in the latter group of the first para , as I suspect most people are.  I agree that costs have to be reduced (just common sense) and yes by monetary metrics my living standards have been reduced already and will continue to reduce in the short term.  However I don't think my quality of life has suffered nor has my mental wellbeing because of cost cutting that started during covid (such as going to the pub etc) and now it is on steroids with a continuing drive towards lowering our household's energy needs.  Money has been saved (into premium bonds) to get me through the next 18 months without cashing in on long-term occupational pensions lump sums.  My wife and I are still able to live off about £12K although I pay no NI, have no mortgage and am under the tax threshold.  My only help towards next year's bills ATM is the £400 grant.  If extra help is forthcoming it will be very welcome but I'm not banking on it.  

Ultrasonic

sienew said:

MattMattMattUK said:

The thing with the levels that are predicted for October onwards as they are not going to be costs which most people will just blindly keep running up, they will cause behavioural and lifestyle changes, the average bill will not be even close to £6,000 because most people will cut back dramatically. There are predictions of dramatic drops in consumption due to cost increases, people will adjust their usage downward.

I'm not convinced that most people are willing to accept a fall in living standards that reduction in usage would require.

There has to come a point when being 'willing' transitions to 'needing to'. Not liking something isn't a reason it 'can't' happen sadly.

fergie_

The more worrying issue is a lot of people already don't have anything to cut back on. They also aren't benefited by tax cuts.

michaels

sienew said:

MattMattMattUK said:

The thing with the levels that are predicted for October onwards as they are not going to be costs which most people will just blindly keep running up, they will cause behavioural and lifestyle changes, the average bill will not be even close to £6,000 because most people will cut back dramatically. There are predictions of dramatic drops in consumption due to cost increases, people will adjust their usage downward.

I'm not convinced that most people are willing to accept a fall in living standards that reduction in usage would require.

So will they invade Russia, invade Norway or suck up to Putin over Ukraine.  Otherwise it is just a spoilt child insisting on being given something by a parent who can only get it by stealing.

shinytop

fergie_ said:

The more worrying issue is a lot of people already don't have anything to cut back on. They also aren't benefited by tax cuts.

There is plenty most people can cut back on; it's about choices. One of the choices that won't be available for most of us is using as much energy as before and someone else paying for it.  As a country, we simply can't afford that. We're nearly all going to have to use less and pay more.  

Lots of helpful tips here
https://forums.moneysavingexpert.com/discussion/6334019/how-to-live-without-heating-save-000s#latest
  

tghe-retford

We're not talking about the idea of one less phone, one less car or one less takeaway here. We're talking of magnitudes of meals to stave off malnutrition, heating to prevent health issues which will place more pressure on the NHS, transportation to work which you need to pay the bills, the ability to donate to foodbanks which will provide food to those in need and the ability to live in your own home for independence and raise a family to name a few. Not things you can wave away or simply cut out.

We are talking not just about using less and paying more, but the concept that for some people in this country, it may be that life in Britain is now just too expensive for them to sustain. Now in poor countries when there is no chance for someone to make a living or sustain themselves, they emigrate. What's the option for when living is beyond someone's means in Britain?

sienew

michaels said:

sienew said:

MattMattMattUK said:

The thing with the levels that are predicted for October onwards as they are not going to be costs which most people will just blindly keep running up, they will cause behavioural and lifestyle changes, the average bill will not be even close to £6,000 because most people will cut back dramatically. There are predictions of dramatic drops in consumption due to cost increases, people will adjust their usage downward.

I'm not convinced that most people are willing to accept a fall in living standards that reduction in usage would require.

So will they invade Russia, invade Norway or suck up to Putin over Ukraine.  Otherwise it is just a spoilt child insisting on being given something by a parent who can only get it by stealing.

No. They will probably demand govt action/intervention, protest, not pay, possibly even much worse civil disobedience.

(I'm not saying this is right thing for people to do... just that it seems quite probable)

Phlik

sienew said:

MattMattMattUK said:

The thing with the levels that are predicted for October onwards as they are not going to be costs which most people will just blindly keep running up, they will cause behavioural and lifestyle changes, the average bill will not be even close to £6,000 because most people will cut back dramatically. There are predictions of dramatic drops in consumption due to cost increases, people will adjust their usage downward.

I'm not convinced that most people are willing to accept a fall in living standards that reduction in usage would require.

People don't have to accept a fall in living standards, however they'll pay handsomely for it.