Growing numbers of people are feeling psychologically affected by the cost of living crisis according to the latest Inflation Nation report from the Yorkshire Building Society.
According to the report, some 67 per cent of adults are concerned by the impact of the cost of living crisis, with 46 per cent already reporting a deterioration in their mental health as a result.
The situation is set to worsen as the crisis continues, with three quarters of people expecting household running costs to increase – and two in five expecting them to do so by between £101 and £500 in the coming months.
With four out of 10 respondents already dipping into their savings within the last 12 months to cover basic living costs, and a further third (35%) reporting that they expect to need to do so in the future, the Yorkshire Building Society is raising concerns over the need for greater mental health support in the UK.
Stephen White, interim chief executive of the society, says: “Much has been written about the devastating financial impact of the ongoing cost of living crisis on British households, with a number of measures announced by the government in an effort to combat rising fuel and utility costs.
“However, what we have been able to reveal today is the shocking, severe impact the crisis is having on our nation’s mental health – with almost half of all adults already reporting a deterioration in their mental state as a direct result of rising prices and inflation.”
A recent report by the Resolution Foundation, a think tank, has revealed that the ongoing crisis will push an additional 1.3m people below the poverty line.
These findings are corroborated by the Yorkshire Building Society which says almost one in five households have nothing in cash savings and therefore, no easily accessible buffer to absorb further increases to their cost of living.
A further 15 per cent of people have under £500 in savings, placing severe pressure on their own financial resilience given the Inflation Nation report found that of those who had used savings to cover rising living costs in the last 12 months, the average had dipped into their savings by £455.
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They forgot to survey private Landlords no one worried about his mental health with all the stress, torture and unfairness imposed, not to mention the huge financial burden placed on him.
Even people earning a good wage these days don't have savings, they live up to and beyond what they earn, then when things go wrong they whinge and blame everyone other than themselves
People do need to be more engaged and proactive when things get tough.
I grew up in the poverty trap, experienced several periods of living on income support, had many years of precarious self employment, etc. A few years ago I had several periods of depression and PTSD.
Wallowing in self pity while doing nothing constructive is a quick route to depression. Taking control of the small stuff can give a huge feeling of achievement. Learn how to understand an electric bill, how to cook lower cost meals, new cheaper hobbies. Do some adult education classes or online courses. Chip away at debt. Set targets, be competitive. Use comparison sites, cashback websites, loyalty cards, special offers. Just having a bank account with separate pots within it or a spreadsheet to list all spending can make budgeting much easier. Change to a utility company that bills frequently if you're worried about building up a big utility debt.
The cost of living the way we have lived in recent years is going to be more expensive. There's no reason to continue doing exactly the same things though. A few modifications can be much cheaper and often better.
Agree. Last year I looked at where I could save on my monthly outgoings. I stopped paying for sky and switched to sky freesat. Even though sky are now offering me half the monthly payment I was paying. Why didn't they offer me that before? I also rang BT and got a better deal with my phone and internet package. I switched energy provider. I also had a water meter installed. In total I am saving about £150 per month without loosing any lifestyle benefits.
I am in my late 50's. I have grown up with easy credit, so it is easy for people to spend out of hand. My parents used to say it was frowned upon if people bought things on credit. If they didn't have the money, they would wait and save up to buy things.
I'm in my late 60s and was brought up by older parents to save first then buy, in my late 20s I had a proper old fashioned bank manager, '' borrow to make money boy, not to sustain a false life style'', better advice you could not ask for, I've never bought a car on finance, or leased one, and never will.
I'm also 50 something and have gone through the gambit of financial offerings. Endowment mortgages, self cert mortgages, interest only mortgages, credit cards, HP, etc. Coupled with periods of unemployment, self employment and zero hours employment.
Credit can either be your best friend or worst nightmare depending on your self discipline with the repayments.
I haven't actually used cash for anything for over 2 years and buy everything on a credit card, which I pay off in full every month. This has multiple benefits:
A complete record of all spending,
Section 75 protection,
Tesco Clubcard points which I convert into hotel accomodation for mini breaks.
Before buying anything I ask myself:
Do I want it, do I need it, do I really like it, where will I keep it, what will I do with it?
The most dangerous phrases people use are:
"It's only........" and "I deserve....."
Unfortunately we are hard wired to be anxious about everything, and so as Jo says we do need to take positive steps to address this. Things are going to get a lot worse before they get better. It doesn't help that the media keeps showing food banks etc, rather than how to access education to manage your life and finances better. Also I agree that landlords already have plenty of reasons to be anxious, including the possibility that their tenants will stop paying the rent.
There are times when people really fall through the cracks in the system but they're likely to be short term. I had a 3 month period in 1987 when all I was entitled to was a giro for 33p a week, milk tokens and Child Benefit for 2 children once every 4 weeks. It was very specific unusual circumstances. I had gone back to college to do A levels as a mature student, so had received a student grant in January. My marriage broke up in February long after the grant had been spent and the next one wasn't due until after the Easter holidays and my husband wasn't paying any child support. The DSS attitude was that I'd had everything I was entitled to so tough, just get on with it and manage.
Back then we didn't have food banks but the Salvation Army was giving away the EU cheese and butter mountain. I used to walk into town with my baby and toddler and queue up 4 times for cheese, butter and occasionally tinned meat. My mother worked next to a bakery and could buy a sack of past its sell by date bread for 50p. People used to cut the money off coupons out of newspapers for me as some supermarkets didn't insist on you buying the correct products. My sister lived in an HMO with housemates who had a somewhat alternative lifestyle so I shared their communal washing up bowl of whatever was for dinner 2 or 3 times a week. It wasn't easy but we survived.
It certainly taught me to never look down on anyone and that help when you really need it can come from the most surprising quarters.
What is classed as the Poverty Line ? Well according to the online calculator , a couple with two Children , Need an Income of £20911 each. So a total income of £41822. for the household.
Which is £3485 per month.
And of course they both smoke, drink, run a car each, have 2 holidays a year and the Sky subs, but they are on the ''poverty line''. which is why I don't buy all this ''poverty'' B S
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