Ahead of the UK general election, voters are facing a stark reality: the cost of living crisis is biting harder than ever. For many, the decision to make ends meet has become a daily struggle, with some opting for unconventional solutions to save money. One such example is India Lerigo, who has taken to making her own dog food to cut costs. In an interview, Lerigo revealed she batch cooks a month's worth of meals over a weekend to save money. This is just one of the many measures people are taking to cope with the rising costs of living.
The cost of living crisis has been exacerbated by the Bank of England's decision to raise interest rates in an attempt to combat inflation. According to the Bank, inflation rose to 10.1% in December 2023, driven by soaring energy costs and a decline in the value of the pound. The decision to raise interest rates has had a knock-on effect on the FTSE 100, which has fallen by 15% in the past year. This has led to a decline in the value of pension funds and other investments.
For UK savers, the situation is particularly bleak. The interest rates offered on savings accounts are now lower than the rate of inflation, meaning that savers are effectively losing money. Mortgage holders are also feeling the pinch, with many seeing their mortgage payments increase as interest rates rise. This is a particularly worrying development, as many households are already struggling to make ends meet.
The implications of the cost of living crisis are far-reaching, with many businesses also feeling the effects. With reduced consumer spending power, companies are struggling to stay afloat, leading to job losses and further economic uncertainty. As the UK heads to the polls, the cost of living crisis will undoubtedly be a major issue for voters, with many calling for action to be taken to address the issue.