Omg 18%

ComicGeek

An inflation rate of 10-18% doesn't automatically mean that everything suddenly costs 10-18% more. A person's individual inflation rate is going to vary depending on what they spend their money on, and where they can look to make changes/cuts. Energy price increases are surely going to account for a big chunk of the inflation figure, so looking to insulate yourself from that as much as possible has got to be a priority - unfortunately for a lot of people they either won't be able to afford to invest, or have left it too late to do too much before the price increases hit. 

We're protected against energy price rises over the next 12 months, and have put in place various measures over the last 12 years to significantly reduce usage and energy costs. Also have invested in a few new measures recently that will further shield us from energy price rises next year. We've changed supermarkets, and have significantly reduced our weekly shopping costs - still scope for cutting out luxuries if we need to, but at the moment we're fairly well protected against inflation. We have spending budgets for activities, luxuries, hobbies, clothes etc - if things go up in price then we reach the limit quicker that month and stop spending.

The energy issue should always have been a separate issue that the Government deals with, but a lot of the issues are due to failures in energy policies over the last few decades. A proper insulation programme 10-15 years ago would have been much better than giving everyone £400 now - you might argue that no one could have expected energy prices to rise so much, but the industry has been warning about this for years. I've been actively preparing our own house for 12 years, to the point where my net energy costs are negative, and the money I make each year pays for a short break (or gets recycled back into further measures).

pensionpawn

ComicGeek said:

An inflation rate of 10-18% doesn't automatically mean that everything suddenly costs 10-18% more. A person's individual inflation rate is going to vary depending on what they spend their money on, and where they can look to make changes/cuts. Energy price increases are surely going to account for a big chunk of the inflation figure, so looking to insulate yourself from that as much as possible has got to be a priority - unfortunately for a lot of people they either won't be able to afford to invest, or have left it too late to do too much before the price increases hit. 

We're protected against energy price rises over the next 12 months, and have put in place various measures over the last 12 years to significantly reduce usage and energy costs. Also have invested in a few new measures recently that will further shield us from energy price rises next year. We've changed supermarkets, and have significantly reduced our weekly shopping costs - still scope for cutting out luxuries if we need to, but at the moment we're fairly well protected against inflation. We have spending budgets for activities, luxuries, hobbies, clothes etc - if things go up in price then we reach the limit quicker that month and stop spending.

The energy issue should always have been a separate issue that the Government deals with, but a lot of the issues are due to failures in energy policies over the last few decades. A proper insulation programme 10-15 years ago would have been much better than giving everyone £400 now - you might argue that no one could have expected energy prices to rise so much, but the industry has been warning about this for years. I've been actively preparing our own house for 12 years, to the point where my net energy costs are negative, and the money I make each year pays for a short break (or gets recycled back into further measures).

I agree entirely. Your cash holding doesn't 'reduce' in value by the headline inflation rate, it does depends on what you spend your money on. We replaced our 25 year old windows last October and combined with a new 'intelligent' / highly efficient washing machine and reduced hours at work our energy bills have fallen by a third "on top" of the existing benefits of our solar panels. We're replacing our 26 year old gas boiler at the end of September and based on the current (and predicted Jan) cap rise that it will repay ~£620 of its cost by the spring. Yes this is a pension / investment  forum however planning to minisise your outgoings means that you don't need to work longer / harder to maximise that pot.

Expotter

And what exactly is a person who's already cut all luxuries, changed supermarkets, etc. living in rented accommodation supposed to do then? Especially if they're working full time on a £20k something wage with zero entitlement to any benefit?  Surely, it comes a point when no amount of words of wisdom are of any help.

When you consider that the main drivers of inflation are energy, food and fuel, it means highest inflation affects the poorest the most as these are all necessities. And the working poor are probably on a worse situation than those on benefits, because they're the most likely to be helped. 18% plus inflation is just not financially survivable for some and government must intervene.

sevenhills

Expotter said:

And what exactly is a person who's already cut all luxuries, changed supermarkets, etc. living in rented accommodation supposed to do then? Especially if they're working full time on a £20k something wage with zero entitlement to any benefit?

£20k is quite a reasonable income, unless you live in London. I earn around £17k and don't have a problem.
It also depends on your age, if you are 40 plus then you have had time to amass wealth.
If you have children, then you get government benefits, having children is also a choice. If you don't  want to be poor, don't have children.

[Deleted User]

MiserlyMartin said:

cfw1994 said:

sgx2000 said:

I am 62
Was potentially looking at retirement in 2 years....
But god only kmows when now....

Whats next?  The Russians turning all the gas off to europe?

Very possibly.
Shows what a terrorist state Herr Putin’s Russia has become.
Buckle up, wrap up, and do your best to keep warm…..

And meanwhile Boris is jetting off to Ukraine while there is an crisis at home and he has the cheek to tell us that these high prices is a price worth paying for the Ukraine war! The UK has a high level of debt but Boris sees fit to load billions after billions of fresh spending on weapons for that war, which we will have to pay for alongside energy rises. The solution seems to be keep fighting - not sit down at the peacetable, without all these weapons the war would have been over by now and our energy prices back down. Not to mention the lives saved by the war ending. They are prolonging it by sending these weapons. I don't think the policy has public support.

“Peace for our time” policy has been so successful in the past that it led to 7 years of absolute bliss and economic prosperity.  Because rewarding fascist aggressors with more land and people to enslave isn’t going to encourage them to try and take over more and more countries.  Unfortunate the US decided to prolong the war by sending all these weapons to Britain. Not to mention the resulting loss of life because clearly its not the occupying fascist regime that was at fault. 

arnoldy

Expotter said:

 Especially if they're working full time on a £20k something wage with zero entitlement to any benefit?  
And the working poor are probably on a worse situation than those on benefits, because they're the most likely to be helped. 

These are the grafters people feel most sorry for. For example they are paying £1500 tax out of that and possibly half a council tax bill of £2500. Plus maybe trying to put aside £1000/yr for a pension. The answer is probably not more tax and spend, most taxes will always be paid by the millions in the middle who are being squeezed like lemons.

Expotter

sevenhills said:

Expotter said:

And what exactly is a person who's already cut all luxuries, changed supermarkets, etc. living in rented accommodation supposed to do then? Especially if they're working full time on a £20k something wage with zero entitlement to any benefit?

£20k is quite a reasonable income, unless you live in London. I earn around £17k and don't have a problem.
It also depends on your age, if you are 40 plus then you have had time to amass wealth.
If you have children, then you get government benefits, having children is also a choice. If you don't  want to be poor, don't have children.

I don't know where you live, but where I am (not the southeast) the cheapest 1 bed flat rents for around £850, if you add bills and food there isn't a lot left from £1400 per month, if any. Is life really supposed to be about just surviving?

Sorry, but £20k is well below average salary although extremely common and £17k is actually below minimum wage for a full time (37.5 h)  job unless you're under 21.

Most of the young(ish) single people I know of have to live in shared accommodation, even though they work full time and don't get any benefits or credits. Do you really think that's okay?

zagfles

sevenhills said:

SouthCoastBoy said:

The problem we currently have, due to govt intervention, is a massive transfer of wealth from workers to pensioners and people on benefits, we don't have full employment, we have people not economically active as it is not cost effective. Govt policy needs to change otherwise we could see uk sliding into a crisis with higher and higher inflation. Not sure the politicians are aware of the risk to the UK, by giving more money to non producers it is creating an ever bigger inflation cycle.

The party of the rich and business has been in power since 2010, how can that be the case and which party will sort the problem?
How much above earnings have pensions increased?
Giving money to pensioners and the economically inactive hasn't caused inflation, that is down to worldwide issues and printing money.

Do people still believe those tired old stereotypes? Poorer people were more likely to vote Conservative at the last election. The coalition restored the earnings link for the state pension. The welfare budget has increased in real terms since 2010.

pensionpawn

Expotter said:

And what exactly is a person who's already cut all luxuries, changed supermarkets, etc. living in rented accommodation supposed to do then? Especially if they're working full time on a £20k something wage with zero entitlement to any benefit?  Surely, it comes a point when no amount of words of wisdom are of any help.

When you consider that the main drivers of inflation are energy, food and fuel, it means highest inflation affects the poorest the most as these are all necessities. And the working poor are probably on a worse situation than those on benefits, because they're the most likely to be helped. 18% plus inflation is just not financially survivable for some and government must intervene.

I sympathise, I really do. I am now in the twilight of my working career and am fortunate enough to have accumulated a good (though nothing like the size of some of the pots discussed on this forum) size pension pot as fiscal insurance. I'm sure you'll manage that too, however difficult it seems now. However it wasn't always that easy for us. We bought our first house in 1989 which unbeknownst to us at the time was just before the property crash. We sold in 1996 losing our deposit and owing on the (interest only) mortgage. When we bought inflation was ~5% rising to around 8.5% in 1992 before falling to ~2.5% by the time we sold. Over the same period the BoE base rate rose from 13.75% (yes, almost 8 times what they are now!) to 14.9% until falling to 5.7% in 1996. My point being I survived 30 years ago and most will survive this crisis, even though it will be very, very tough. Bear in mind though that the intervention that you hope / expect the government to make will come out of current, or future, tax rises. The government doesn't make money.

sevenhills

zagfles said:

Do people still believe those tired old stereotypes? Poorer people were more likely to vote Conservative at the last election. The coalition restored the earnings link for the state pension. The welfare budget has increased in real terms since 2010.

It's how you interpret things that count. Less educated people support the conservatives, not because they are stupid, but because older people tend to be less educated, because it's only in recent times that so many attend university.
Is the welfare budget increasing a good thing, or a sign of more government handouts?
The government are broke now!

I am a single parent, my daughter is now 22, never earned more than £20k