Cost of living crisis and you.

[Urbandreamer]

I voted that I have no financial concerns. This is despite the fact that over the next few years my income is likely be less than my expenses.

I will be supporting my son at University and giving up work at the same time. My portfolio currently doesn't generate the required income, so I shall be drawing upon capital for a few years, until the pension date on a DB pension. A couple of years later, the state pension kicks in.

This much was planned, hence my lack of concern. The cost of living increases pale into insignificance when considering the swing from working income to living on savings/investments. Though of course every penny does count and needs considering.

[Hallucigenia]

Thanks to all who voted. The result is pretty much as I anticipated.

I know it's a small population but it looks like the majority of folkies here will weather the cost of living storm without even checking the weather forecast.

Maybe the media should run a similar UK poll to see if they should temper their news reporting.

I'm sorry that's just ridiculously complacent, it's the kind of thinking from the privileged that led to a complete underestimation of the poll tax. Of course people on an investment site are going to find this easier than the average person - but that doesn't mean it isn't going to be really tough for the majority of the country. There's estimates that without help, the energy crisis will have double the effect on the disposable income of the average person that the 2008 financial crisis did - and for the poorest it will have 4-5x the average effect of 2008. Whereas I'd imagine that Fools as City-oriented types were probably hit more by 2008.

Floccinaucinihilipilification of the energy crisis is a big mistake.

[scotview]

One other point from the poll which is quite concerning.

Given the nature of the voting TLF population, it is somewhat concerning that there were 3 votes, 5% , who said they were personally very concerned about the cost of living crisis and I would imagine that these are genuine, serious concerns. If this was extrapolated to the wider UK population the government, led by Liz Truss (?) needs to get into gear pretty urgently with fast acting, sensible measures.

Edit, posted simultaneously with Hal's post.

[BullDog]

It's true that I will be hit far harder next year now I am retired than ever during the 2008 financial crisis. I was running a one man consultancy and at the time, daily and hourly rates had never been higher. Between 2008 and 2010 it was a very fruitful time indeed. Contrast that with 2015 and H1 2016 which saw me with zero income.

[richlist]

I view the cost of living crisis in the same way that I view many other issues .......I see it as an opportunity.

[Dod101]

I view the cost of living crisis in the same way that I view many other issues .......I see it as an opportunity.

Lucky you.

Dod

[richlist]

I really have no financial concerns about paying my bills because at worst I would pay them from capital without noticing the loss , since I have certainly lost more in capital through market noise this week alone than my fuel bills are ever likely to be. That is probably not what was meant in the poll.

So however a good idea the poll might seem, it is rather flawed. OTOH if the questions were more tightly drawn, such as to ask 'Given the current situation and outlook for fuel bills, how confident are you that you will be able to pay them out of current income?' that could produce an altogether different set of answers.

Dod

Lucky you !

Let's not forget the help we will be getting from the Gov' in the next few months + the extra help that is very likely to be coming once the new PM is in place.

[Mike88]

Thanks to all who voted. The result is pretty much as I anticipated.

I know it's a small population but it looks like the majority of folkies here will weather the cost of living storm without even checking the weather forecast.

Maybe the media should run a similar UK poll to see if they should temper their news reporting.


Note to mods, I got the wording of the third item wrong "You am personally very concerned." I tried correcting it a couple of times, within the time limits but it seems that when a poll is posted, you can't correct the wording.

I very much doubt whether the people frequenting this message board are representative of the population of this country as a whole.

[Urbandreamer]

Let's not forget the help we will be getting from the Gov' in the next few months + the extra help that is very likely to be coming once the new PM is in place.

I'm sure that we don't want to get into the politics of the situation here, but I'm likewise sure that people are interested.

As such, can I recommend the recent episode of R4's "more or less".
https://www.bbc.co.uk/sounds/play/m001bl03
While it covers more than this issue, it does go into the numbers around this subject, rather than the polemic.

[richlist]

I assume the comments on this thread are limited to private individuals.
The issues relating to pubs, restaurants and small businesses would be of greater concern to me.

[Mike4]

I assume the comments on this thread are limited to private individuals.
The issues relating to pubs, restaurants and small businesses would be of greater concern to me.

Yes this is the bigger risk and mostly overlooked. As they mawkishly pointed out on R4 the other day, the biggest employer in the whole of the UK is "Small Business", and 'many' small businesses are are likely to be pushed into insolvency by uncapped fuel bills. They cited as an example a pottery business (running kilns IIRC) whose annual leccy bill would be rising from something like £20k to £120k with the implication they were gonna just have to close down and make the staff redundant, with this scenario duplicated all over the UK.

I shall be most upset too if our village pub goes under, which seems likely. It struggles to remain viable with its current overheads.

[BullDog]

I assume the comments on this thread are limited to private individuals.
The issues relating to pubs, restaurants and small businesses would be of greater concern to me.

Yes this is the bigger risk and mostly overlooked. As they mawkishly pointed out on R4 the other day, the biggest employer in the whole of the UK is "Small Business", and 'many' small businesses are are likely to be pushed into insolvency by uncapped fuel bills. They cited as an example a pottery business (running kilns IIRC) whose annual leccy bill would be rising from something like £20k to £120k with the implication they were gonna just have to close down and make the staff redundant, with this scenario duplicated all over the UK.

I shall be most upset too if our village pub goes under, which seems likely. It struggles to remain viable with its current overheads.

A 5 or 6x hike in energy bills plus a clientelle who are far worse off than they were six months ago. A perfect storm for smaller businesses in hospitality? I can see many pubs and restaurants will be open maybe only the three busiest days a week to minimise overheads this winter. Whether they are viable or not? We shall see, I suppose.

[Arborbridge]

I'm not sure how to answer this, as it depends what the frame of reference is. Concerns? Well, probably most of have some concerns unless you have 25 million in the bank, and then maybe you have concerns for others - your employees, friends, etc.

So I am somewhere between some concerns and no concerns....probably depending on what is going on around me on the day. Anyhow, for my immediate outlook, I guess I fit into "no concerns".


Arb.

[richlist]

Well there are going to be quite a few small businesses that will do very, very well in the latest cost of living crisis, just like some businesses did very well in 2008 and in the C19 pandemic. In the current crisis.....solar panels, log burners, log suppliers, portable gas heaters, bottled gas in fact anything that positively affects heating or eating. I suspect airlines & associated businesses will do quite well as those that can afford it will fly to somewhere sunny & warm for the winter. So, there will be many thousands of jobs that are likely to be safe........and many thousands that won't be so lucky.

[BullDog]

Well there are going to be quite a few small businesses that will do very, very well in the latest cost of living crisis, just like some businesses did very well in 2008 and in the C19 pandemic. In the current crisis.....solar panels, log burners, log suppliers, portable gas heaters, bottled gas in fact anything that positively affects heating or eating. I suspect airlines & associated businesses will do quite well as those that can afford it will fly to somewhere sunny & warm for the winter. So, there will be many thousands of jobs that are likely to be safe........and many thousands that won't be so lucky.

Given the pandemic and the present economic outlook, has there ever been a worse time to be in the UK hospitality business? I can't think of a worse time. The industry, might not be the best payer, but it employs millions of people. Many of them part timers and who really do need the income. I do have a great deal of sympathy but beyond carrying on with visits to local coffee shops and restaurants I don't know what can be done. I hope I am too pessimistic.

[richlist]

Yes I agree. I'm a shareholder in some and receive discounts which I'm going to be embarrassed to claim during my visits.

[Arborbridge]

Yes I agree. I'm a shareholder in some and receive discounts which I'm going to be embarrassed to claim during my visits.

Don't feel so bad - they would rather you visit and spend some money than not, which is why they offered the discount. And the discount is part of the deal you entered for investing in them and taking the risk with your capital.

And there's always the option of not taking it.

Arb

[88V8]

Thanks to all who voted. The result is pretty much as I anticipated.
I know it's a small population but it looks like the majority of folkies here will weather the cost of living storm without even checking the weather forecast.
Maybe the media should run a similar UK poll to see if they should temper their news reporting.

I'm sorry that's just ridiculously complacent, it's the kind of thinking from the privileged that led to a complete underestimation of the poll tax.

I was disappointed to hear Gove , usually a sensible chap, on't wireless responding to a question today... whether people should be told to use less energy by saying "that would be condescending".
Whaaaa?

Since when it is other than sensible to tell people that they should make every effort to economise... and improve what's said to be the least heat-efficient housing stock in Europe - not that we're in Europe - what happened to the climate crisis and net zero? Are these just empty phrases?

This is an opportunity to focus folks' attention on their wastefulness... and the notion that the average idler glued to their phone should be told to do something is not condescending. It's neither hard nor expensive, topping up the loft and sticking some Compriband around wooden windows.
That won't offset a tripling of energy costs, but it certainly helps.

Says he ... having just spent two days in the attic topping up our insulation... remove the clutter lift the floor add insulation beef up the pipe insulation... which I'd vaguely intended to do for ages... but then at 71yo I'm not an idler and I resent the notion that the govt with my money, should insulate some shiftless peoples' houses or subsidise those who like to walk around in their shirtsleeves sticks in my gullet.

Those not alive in the 60s mostly have no idea how to be frugal with energy, and it is not condescending to tell them.

V8

[didds]

[
... it is not condescending to tell them.

V8

I do agree. Especially since since the late 90s at least we have had increasing nanny-stateism and now have an entire generation that (very generically speaking obviously) has become used to being "advised" as to what to do.

What is important though is how the message is delivered - other's MMV but frankly telling people to buy a new £20 kettle to save £10 a year is ridiculous.

[pje16]

but frankly telling people to buy a new £20 kettle to save £10 a year is ridiculous.

Agreed
What does save money is something like this
https://www.wilko.com/breville-hotcup-h ... /p/0465193
How many times do boil the kettle for a cuppa, leave it come back 10 mins later and reboil
I have had the Tefal equivalent of one of these for years
(they don't make it anymore)