Understanding the Cost of Living Crisis: Insights and Implications
The cost of living crisis in the UK, driven by high inflation and stagnant wages, has worsened due to recent events like the conflict in Ukraine and pandemic repercussions. This has led to a significant impact on disposable incomes, widening inequalities, and psychological effects. Organizations like Citizens Advice Bureau are actively addressing the rising challenges. The crisis is also affecting physical activity levels, as stress and worries related to the cost of living hinder participation.
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Cost of Living Cost of Living Data and Insight to influence change Insight to influence change Data and 2ndNovember Share, Connect, Collaborate
Workshop structure Workshop structure The what ? Introduction to Cost of Living and Insight presentation The so what ? Group discussion The now what ? What could you do differently
The cost of living crisis refers to the fall in real disposable incomes (that is, adjusted for inflation and after taxes and benefits) that the UK has experienced since late 2021. It is being caused predominantly by high inflation outstripping wage and benefit increases and has been further exacerbated by recent tax increases. Institute for Government
National picture National picture The cost of living has been increasing across the UK since late 2021 Conflict in Ukraine Legacy of the pandemic Increased price of goods Global supply chain issues Wage stagnation The annual rate of inflation reached a joint 40 year high in September 2022 of 10.1%
National picture National picture Citizens Advice Bureau report that more people are hitting crisis point than ever before. By the end of August, CAB had nearly helped as many people with energy issues as they did for the whole of last year. The CAB have developed a COL data dashboard and associated monthly briefings that are free to attend.
National picture National picture ONS data collected suggest that people are concerned about the cost of living increases, with 93% reporting their cost of living had increased compared with a year ago. 79% of adults very or somewhat worried about the rising cost of living. COL crisis is widening inequalities, disproportionately affecting those with disability, low income and from a minority ethnic background Significant psychological effects for reduced income such as reduced confidence, educational and professional attainment and increased risk of mental illness.
Cost of Living and physical activity Cost of Living and physical activity Sport England research (March 2022) suggest that physical activity is likely to reduce as a result of COL crisis This is concerning as physical activity participation has not returned to pre pandemic levels Increased worry and stress associated with COL
With the person next to you, With the person next to you, discuss whether the data discuss whether the data presented is consistent with presented is consistent with what you are hearing in your what you are hearing in your organisations organisations
Local picture Local picture The Data and Analytics team at ECC have predicted the effect of inflation on household income By modelling the annual inflation rate at 11%, the team have predicted that the number of families in Essex experiencing financial hardship will double compared to baseline (December 2021) rising from 27% (160,000 households) to 54% (320,000 households). This could mean that up to 30% of households (c. 180K) could have negative discretionary income D&A team presentation and accompanying video can be found on the QR code
Local picture Local picture Data collected to explore Cost of Living through Holiday Activity Fund Summer 2022 survey. Parents/carers thought their financial situations were worse off compared to previous year and expected to be in more financial difficulty in a years time. Financial concern such as the cost of the living was a worry to 95% of parents/carers. Nearly half of parents/carers (46%) described their current financial status as just enough for basic necessities and little else
Over 80% of parents/carers agreed that the increase cost of living means their families will not always be able to take part in sport and leisure activities. Around a quarter of parents/carers indicated that they were thinking about changes to the current leisure use and children s attendance at a sports club or session.
I am very worried about the future, about the increasing bills and prices for groceries. I don't think my employer will increase our salary to be enough for everything. I don't know what I will do! I cannot sleep because of all these thoughts! It's a real worry as I regularly go without food and essentials just so my children's needs are met. Any further cost of living rises are likely to mean that we will become homeless. I m so worried about this. I m budgeting wherever I can. My focus is on keeping my family healthy, plus helping them get through school, whilst not spending too much I ve had to cancel after school clubs as I simply can t afford it. If it wasn t for clubs like [Essex] Activate, I don t know what I would do.
So what does all this mean? So what does all this mean?
1. How have you used cost of 1. How have you used cost of living data to inform your living data to inform your work? work?
2. What additional data 2. What additional data would be beneficial for your would be beneficial for your work? work?
3. What could you do 3. What could you do differently as a result of this differently as a result of this workshop? workshop?
