Shocking figures last week suggested that people in the UK have seen debts double over the pandemic. Add to that news that energy prices could potentially double in a year, and that the inflation of day to day living is vastly underplayed by figures, and it is fair to say that many people are feeling anxious regarding their finances.
Renowned presenter and financial journalist Jasmine Birtles has been trying to support the British public for many years through her financial advice in times of need. Currently, along with the team at GB news, she is even looking to reduce the VAT on our energy bills. However, she feels people need to hear from the experts now more than ever, so we spoke with Jasmine and posed many of the questions we have received over social media over the last few weeks, hoping to explain some of what is going on.
Would you say the UK is at crisis point with our living costs?
Yes I think many people are although others are still managing. However, costs are likely to continue to go up, particularly energy costs which may double for quite a lot of Brits in the next few months.
Is this an international pattern?
Up to a point, yes. We have a particularly bad problem with energy costs as we don’t produce enough of our own. We really need to get to the point where we are much more independent when it comes to our energy production.
Do you think the figures are accurate?
No, I think inflation is closer to 10% in reality. I think the 5.4% figure – though high – is not realistic for most people in the UK. Just taking energy costs alone, the amount they have to pay each month is going up very fast.
What areas (not geographical) are hardest hit? So, banking/energy/grocery shopping, for example?
Energy, petrol, food, clothing, second hand cars are all going up fast. I think that most will continue to go up over the next few months. I don’t see this easing off in April as the Bank of England has forecast. I think it will go on for longer.
Have wages increased?
Yes but not enough. They need to go up by ore than most employers can afford in order to keep up with inflation properly
Has lending increased?
At the moment it’s still very cheap to borrow if your credit rating is good enough so lending is pretty robust currently. One charity that I am patron of – Fair For You – lends to people on low incomes in order for them to buy products for the home, and I know they are rushed off their feet.
Do you see the increases continuing before wages do?
Yes. Although wages are going up in some areas they’re not in others. Many employers are concerned about the future as they know that inflation means people’s discretionary spend will be down and that that could hurt their bottom line. They are holding back from increasing wages or spending on advertising before they see what is going to happen.
Do you see more people turning to you and your website in times of crisis and what do they offer to help people?
Yes definitely. We have literally hundreds of articles on how to save money, how to make money and how to manage your money in a crisis. We can help people get back on their feet financially and even help them invest in the right way in times like these.
To conclude, although some of this may sound alarming as Jasmine has specified, there is help out there for those in need and she suggests that although “the government is talking about helping people with energy bills but it will probably come too late and be too little. It usually is. I would like to see them remove the 25% green tax and, for the moment, the 5% VAT on energy bills.”
Jasmine says it seems crucial that people remember that there are people aside from the government who will be able to help. She suggests “that people who are already struggling go immediately to one of the free debt advice charities such as Community Money Advice, StepChange, Citizen’s Advice and Christians Against Poverty. I also recommend that they go to Turn2Us.org.uk to use their benefits calculator and also see if there are any grants that they may be entitled to.”
Most importantly, Jasmine’s advice is not to panic, as “it’s likely that this year and possibly next year will see high inflation, but it will go down again at some point. So don’t think this is forever. Now is a good time to get together with friends and family and see what you can share…including sharing where you live as it’s cheaper to heat one home than two! Also look into ways that you can make extra cash on the side to help pay bills and keep you going. We have loads of ideas on MoneyMagpie.com!”
