Cost of Living - How are you handling it?

Inflation drives fastest fall in real pay on record

Pay has fallen further behind the rising cost of living, according the latest official data.

While average wages rose 4.7% between April and June, that was outpaced by inflation - or price rises - which is growing at a much faster pace.

As a result, the "real value" of pay fell by 3%, according to the Office for National Statistics.

The latest inflation figure, due out on Wednesday, is forecast to be higher.

The gap between pay growth and inflation is the biggest since records began more than 20 years ago.

"Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001," he said.

The data also highlighted a gap between public and private sector wage growth.

Private sector wages grew by 5.9% while those working in the public sector saw pay growth of 1.8% - which Mr Morgan said is the "largest difference we have seen for 20 years".

https://www.bbc.co.uk/news/business-62550069

We are on a fixed tarrif until January, which means our current rate is very competitive. Come January though, the cap is likely to have risen twice, so I suspect we'll be hit with a huge hike in our rates.

We have a gas fireplace in our lounge which means that we have to have an air vent. We dont use the fireplace, so my intention is to get the fireplace removed and the vent blocked up. The additional insulation will no doubt pay for itself with the rate increases which are coming.

The combination of interest rates on our mortgage and energy price rises are likely to add hundreds to our monthly outgoings. At the moment we are fine, but there certainly is a feeling of impending doom approaching!

Labours plan to freeze the cap is appealing , but the fact its likely to cost more than the furlough scheme shows just how big a problem we have on the horizon.

Yea...the energy bill for manufacturing is going to have a lot more zeros on the end of it. And if companies aren't price capped, they have no spare funds for payrises.

Recession is the only logical conclusin at this point. Some firms will have to go bump to lower demand to bring energy demand down to keep the others afloat. Will just have a knock on effect of people out of work and unable to pay their gas bill this winter.

jawa_ wrote:Thanks, guys. So if I've got this right... the producers selling at wholesale are almost printing their own money whilst some of those companies selling to consumers and business are struggling.

Probs no way out if this, really, unless we somehow use something different for our energy source? Or, as others have said, tax the profits of the producers? I guess that the former would be an impossibility for the near-to-medium future whilst the latter is probably the way forward but notoriously difficult to carry out?

What's needed is nationalisation of the producers, even moreso than the suppliers right now.

But yeah, the producers are basically able to set whatever price they want and there's little choice anyone has but to pay it since...what the strawberry float else can you do to get energy?

Nationalisation of suppliers is still an option because you get to choose who eats the increase in energy costs, the end user or the Treasury in the form of national debt.

Last year a lot of care homes were lost as they couldn't afford to run with staff having to isolate and pay up for agency staff to cover to run the service. I can only imagine how many privately run homes will pack up as it's no longer profitable to run the heating in summer and pay for laundry and cooking requirements.

Every private enterprise in the country is soon going to be run by Amazon or BP.

Cuttooth wrote:Nationalisation of suppliers is still an option because you get to choose who eats the increase in energy costs, the end user or the Treasury in the form of national debt.

I can see them temporarily nationalising during this period before passing back- which would be the worst possible outcome.

Share the losses, privitise the profits!

Hexx wrote:

Cuttooth wrote:Nationalisation of suppliers is still an option because you get to choose who eats the increase in energy costs, the end user or the Treasury in the form of national debt.

I can see them temporarily nationalising during this period before passing back- which would be the worst possible outcome.

Share the losses, privitise the profits!

That was essentially Gordon Brown's proposal wasn't it?

Cuttooth wrote:

Hexx wrote:

Cuttooth wrote:Nationalisation of suppliers is still an option because you get to choose who eats the increase in energy costs, the end user or the Treasury in the form of national debt.

I can see them temporarily nationalising during this period before passing back- which would be the worst possible outcome.

Share the losses, privatise the profits!

That was essentially Gordon Brown's proposal wasn't it?

I only looked headlines but I think so yeah - very similar to the "too big to fail" banks. It might be necessary/very good for public - but it's great for business in the long run

Oblomov Boblomov wrote:Profit isn't a dirty word!

Profit is fine as long as its donated to our party.

It also just occurred to me that if I was hiring an industrial unit subject to a business energy supply I would also probably be shut down overnight. If I rented one from someone else the costs would just be passed on in rent.

Because I work from a studio at home I have "consumer"/retail energy supply and I charge a proportion of this to the business, I also get tax relief when/if I owe tax (I don't).

After Covid it's just remarkable how setting myself up (including significant rent for the extra room I need) to WFH permanently owing to my disabilities, which would generally be considered misfortune, has insulated me from some of the worst economical impacts of recent crises. It's just bonkers.

I am still losing money every year and it's by no means a good situation but it would be basically impossible to stay afloat any other way unless I too was making record profits. I accept because of the small amount of support I get my work is subsidised to a degree by public money but I'm just counting my chocolate buttons here in that, this could have an enormous impact on my competitors and I feel bad for them.

Garment decorators use things like tunnel dryers, heatpress, UV curing units and in the larger opps a lot of pneumatic equipment etc, it's all powered somehow.

A deep fryer is probably one of the most energy intensive bits of equipment you could have.

Gordon Brown sold off Gold reserves that would be worth an additional 14 billion at today's market value.
Imagine what that could have done for the energy crisis.

Mommy wrote:Gordon Brown sold off Gold reserves that would be worth an additional 14 billion at today's market value.
Imagine what that could have done for the energy crisis.

Could have burnt it to heat 5 schools for a week.

Mommy wrote:Gordon Brown sold off Gold reserves that would be worth an additional 14 billion at today's market value.
Imagine what that could have done for the energy crisis.

I’ve no doubt the Tories would have sold it all to one of their mates to help pay for the pandemic.

Carlos wrote:

Mommy wrote:Gordon Brown sold off Gold reserves that would be worth an additional 14 billion at today's market value.
Imagine what that could have done for the energy crisis.

I’ve no doubt the Tories would have sold it all to one of their mates to help pay for the pandemic.

No doubt they knock spots off what GB did.

Mommy wrote:Gordon Brown sold off Gold reserves that would be worth an additional 14 billion at today's market value.
Imagine what that could have done for the energy crisis.

Yeah if only Gordon Brown could have seen 20 years into the future.

The Tories wasted £15bn on faulty PPE. And £37bn on a broken test and trace app. £52bn on just those alone. Interestingly, that's close to the £55bn it would cost to fully nationalise the energy market. Imagine what that would do for the energy crisis!

But sure, tell us more about what Brown did 20 years ago.

Also decided not to pursue billions of pounds worth of criminal claims made during covid.

And eat out to help out cost a fortune, only helped big business and increased the spread of the virus.

And the Rwanda scheme which is not cost effective.

And Brexit which has cost the UK billions

Mommy wrote:Gordon Brown sold off Gold reserves that would be worth an additional 14 billion at today's market value.
Imagine what that could have done for the energy crisis.

Imagine if energy companies weren't privatised by Thatcher.

At least Brown's decision had logic and good intent behind it even if it didn't ultimately work out. More than can be said for alot of the Tories profiteering during the pandemic.