To put it simply, the current financial climate in the UK is a bit of a mess. There are a few different factors to blame, like Covid-19, the war in Ukraine, the Downing Street game of musical chairs and, you guessed it, Brexit.
Inflation has soared since lockdown came to an end. This is thanks to the sharp increase in demand for goods and services, as well as ongoing supply chain disruption caused primarily by Covid and the war in Ukraine. And it’s not just the odd thing getting more expensive. Prices have risen across the board from essentials like your weekly food shop, to discretionary purchases (your treats – alcohol, holidays, concert tickets, that kind of thing). With the Consumer Price Index (CPI) up 10.1% in September 2022 vs the year before.
Wholesale prices of fuel, like petrol and diesel, and energy have gone up too. That means daily rituals like making a cuppa, having a shower, turning the heating on and filling up the car all cost more too.
Who’s feeling the pinch?
Sure, prices are rising at similar rates for everyone, but the pinch isn’t one-size-fits-all.
According to The Guardian, lower income households tend to spend twice as much proportionally on essentials like housing, food and bills compared to richer households. This results in huge disparities between the leeway that different households have in managing financial strains. The bottom line of it? While some families can cut back on luxuries to accommodate rising costs, others are having to make impossible decisions between putting food on the table and heating their home this winter.
Whatever your personal situation, this guide is a helping hand for anyone looking for inspiration, ideas, tips and hacks for enjoying days out without breaking the bank.