Is the Cost of Living Crisis Easing?
The rising inflation rates in 2022 marked a significant shift in the economy, leading 2023 to become a time when the phrase “Cost of Living crisis” underscored many conversations. For the first time since the 1980s, inflation rates reached their peak, having a noticeable impact on most people’s day-to-day lives.
September news brings a welcome sigh of relief due to the gradual decline in the annual inflation rate. This is helped by interest rates remaining unchanged for the first time since November 2021, reduced global prices of gas and oil and declining petrol prices. However, it does not mean that the current inflation rate is beneficial, and it does not undo the damage caused by the past year of economic hardship.
In fact, people are still battling higher than usual prices whilst trying to recover from the difficulties faced over the winter. Everyone is affected by price hikes, but studies on inflation inequality reveal that many are left to suffer more extreme impacts and are still in need of support, even if the general economic state of things is looking ‘brighter’.
For example, increases in food prices will affect those who have more mouths to feed. And this pressure inflates when it comes to heating more rooms in a home or trying to budget for other necessities.
On the other hand, drastic increases in petrol costs seen over the past few weeks may affect your long drive to work more than it will to those who travel by bus or walk.
During the back to school season, there are reports of children suffering from lack of sleep, lack of food and lack of sufficient resources. A striking image, painted in this Guardian article, speaks of children who have holey uniforms and shoes falling apart at the seams. It is quite different from the idealistic vision of returning to school with shiny shoes and a brand-new uniform. It does not reflect the positive narrative that at long last our country is returning to normal and signals that the cost-of-living crisis is here to stay.
The Cost-of-Living crisis impacts everyone differently, and those on lower incomes are likely to be impacted to a greater extent. Therefore, while the media is conveying optimistic reports of change, the reality is that this will take time to see evidence of recovery and the support available must be outlined for those who need it.
As a fuel poverty charity, Nottingham Energy Partnership offers a range of services such as food bank vouchers and discounts on water bills intended to provide support and help maximise the disposable incomes for low-income households. Call us today on 0115 985 3009 to see how we can help.
Cost of Living Payments
Below we have listed the cost-of-living payments which have been announced for 2023/24. Should you need further information regarding eligibility, this can be found on the Government website.
-
If you get any of the following benefits or tax credits you may be entitled to up to three Cost of Living payments of £301, £300 and £299.
If you are eligible, you should have received the first payment of £301. The next £300 Cost of Living Payment will be paid between 31 October and 19 November 2023.
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit
• Universal Credit
• Child Tax Credit
• Working Tax Credit
If you are eligible for the payments you do not need to do anything, you will automatically be paid them.
-
If you receive any of the following benefits you may have been eligible for a £150 payment which was automatically paid between 20th June and 4th July:
• Attendance Allowance
• Constant Attendance Allowance
• Disability Living Allowance for adults
• Disability Living Allowance for children
• Personal Independence Payment
• Adult Disability Payment (in Scotland)
• Child Disability Payment (in Scotland)
• Armed Forces Independence Payment
• War Pension Mobility Supplement
-
Pensioners who are eligible for the Winter Fuel Payment will get between £150 and £300 as an additional payment in November 2023. This is to ensure vulnerable, elderly people will be able to stay warm, healthy and comfortable.
Anyone born before 25th September 1956 is expected to receive the Winter Fuel payment in November or December 2023 to help with bills in winter this year. The exact amount depends on your age and whether other people in your household also qualify, you will receive a letter in October or November regarding this.
Please note, you do not need to apply. If you’re eligible for these payments, they will be made automatically - if you receive a message asking for your details, be aware that it could be a scam.