What is cost of living crisis in rich Britain?
A customer shops at a Sainsbury's supermarket in Walthamstow, east London Photograph:( AFP )
Story highlights
While rising energy prices will affect most households across the country, they are more likely to disproportionately affect those on the lowest incomes
While rising energy prices will affect most households across the country, they are more likely to disproportionately affect those on the lowest incomes
What a rollercoaster ride British citizens have been on since Brexit, COVID-19 and now the fatal energy blow being delivered to hardworking families in this country. From April this year electricity and gas tariffs have gone up by over 50 per cent on average, thanks in part to the price cap being removed by Ofgem and a free for all in a capitalist energy market. The working poor, pensioners, benefit claimants and ordinary folks will have to make a serious choice of whether to feed themselves and their families or heat their homes to keep everyone warm and comfortable. A disgrace for the United Kingdom as it belongs to the G7 club of rich nations.
While rising energy prices will affect most households across the country, they are more likely to disproportionately affect those on the lowest incomes. In the financial year ending in 2020, the poorest 10 per cent of households spent more than half (54 per cent) of their average weekly expenditure (£298.90) on essentials such as housing (including electricity and gas), food and transport. Those in the richest 10 per cent, in comparison, spend 42 per cent of their average weekly spend of £1,073.20 on the same essentials. As usual, during any economic crisis, it’s the working class that suffers the most and are often blamed, even though it’s the fault of our elected politicians and their lobbyist friends and donors.
A perfect storm is brewing for many households in Scotland as a decrease in wages, increase in high food prices, and from April a massive energy price hike. Rishi Sunak, ex-chancellor and now an aspiring prime minister, has not extended the £20 Universal Credit last year as that would have help cushioned the impact a little. The current rate of pay and benefits don’t fit well with a rich nation like the UK. Prepayment meters will see the highest price rise and they are mostly used by the poor and most vulnerable in our society. It beggars’ belief that the citizenry can be so easily misled and benefit claimants scapegoated again and again for the deals made by politicians to rob the taxpayers via their friends and families' companies which are setup simply to steal money officially through various tax havens.
Overall, considering predicted energy price increases alongside a reduction in real wages and the planned increase in national insurance contributions, the Resolution Foundation feared a “living standards catastrophe” in 2022. It is estimated that taxes and energy bills would have risen by an average of £1,200 per household since April 2022 under current government plans.
(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer)
WATCH WION LIVE HERE:
