They Think It's All Over...
Nicola Biggerstaff
This week it was revealed that that average wage growth has overtaken the rate of inflation for the first time in two years, and that inflation has remained at 6.7% since August. According to several news outlets and economists, this preludes a slight easing of the cost of living crisis. However, they fail to see the human cost: for many, this crisis is not over, and will still not be over when costs eventually do ease.
For starters, these statistics released this week are only representative of the average wage. Low income households and low wage earners still exist, still outnumber higher wage earners in this country, and still struggle every day. The minimum wage only rose by 9.7% on average in April which, although inflation had decreased to 8.7% by this point, this was down from previous highs of over 11% at the start of the year, which many had to struggle through on inadequate wages. Many will have fallen into poverty or extreme debts as a result which they will now have to pay their way out of on their own.
With interest rates set by the Bank of England also expected to stay at 5.25% following this week’s news, their highest rate since the 1980s, this will continue to affect low income homeowners who are still paying mortgages disproportionate to their stagnating incomes, and will be expected to continue to do so until at least late 2024.
We cannot base a fair economic structure on these averages, as they neglect the people at the very bottom, those who are now much worse off. The media can take these averages and try to spin them into a positive, but it is a false positive at best. The reckless actions of successive Tory governments have done lasting damage to the poorest in our country, and the fallout will be felt for years to come.
Workers are still striking for better pay and conditions, and life is still unaffordable for many. NHS workers in England, as well as school support staff here in Scotland are just the latest to engage in strike action, with further disruption in the transport sector also continuing. But this is not just affecting wage earners. Those reliant on income other than wages, such as those in receipt of government assistance including pensions and universal credit, are more vulnerable this year than last year, because inflation has been relentless ever since. For the same reasons as those on lower income, they will also still be feeling the pinch until inflation and payments are reasonably adjusted.
As we know, decreasing inflation does not mean lower costs for us, just that costs are not rising as quickly as they did last year. These cost rises are uneven across even out most basic amenities, some things remain within a generally more acceptable price range, while others have skyrocketed, and the mundane has suddenly become unaffordable.
The ONS claims that inflation stagnating is due to the rising cost of petrol and diesel fuel offsetting the slight fall in food prices. This means people are going to continue to struggle this winter, despite having already cut back on our luxuries as we were advised last winter. Things have not gotten any easier for us, and now we will probably be expected to sacrifice even more.
The cost of food may have decreased for the first time in two years, but it remains extortionate, having already previously risen by as much as 19.2% back in March. And as we head into another bleak winter, energy costs, while gradually lowering, are still unjustifiably high. Warm banks are set to return for a second winter in some counties, the very existence of which should bring shame on those who had the chance to continue helping those struggling and wilfully chose not to.
Payments to support people have been stripped back, with the Energy Bill Support Scheme from last winter discontinued, and criteria for Cost of Living payments severely limited, people have been left behind once again while the companies responsible continue to profit from this. Energy companies in particular have been let off the hook far too easily for this. Despite these assistance payments, BP reported profits of over £2 billion, while Shell reported profits of almost £4 billion.
I find myself turning more and more into my parents as the weeks go by – is now a good time to stick the heating on, or should I just put on another jumper? The thought of paying to heat my home terrifies me, how much is extra is it going to cost me this year? Will I have to cut back even more than I did last year? There is simply no way to plan for such uncertainty, and many of us are still recovering from these choices we had to make last year. Worst case scenario, I may just have to prepare to be cold once again, as my colleague Kaitlin reported on last year.
Has there ever been a stronger sign of ineffective governance than having to face the exact same problems this winter as we did last? And yet, our politicians are far too busy gearing up for the next election to care. They’re talking bonds and wars on motorists while people freeze and starve to death in this country. They’re failing to see the true scale that you or I encounter daily.
Someone needs to step up and speak for those who are still struggling. Let our representatives know that we are still struggling, and that we will remember their lack of action in the polling booth.