Affording the basic needs

Affording the basic needs

It will come as no surprise to most people that we now need more money to pay for the same day-to-day living costs. Although the darkest days of the most recent recession are, in most people’s opinion, behind us, it would appear that we need more and more money in our pockets to afford our most basic needs.

Affording the basic needs

The Consumer Prices Index and inflation

The Office for National Statistics (ONS) released figures showing that the UK Consumer Prices Index (CPI) – the measure widely used to measure inflation – rose by one per cent in the year to September. This was a marked rise compared with the 0.6 per cent rise reported for the year to August. The latest figure brings inflation back to its November 2014 peak and, according to the ONS, is mainly due to the increased cost of clothing, fuel and hotel accommodation.

Is Brexit to blame?

Following the announcement, many speculated that this was another consequence of Britain’s vote to leave the European Union and the subsequent weakening of the pound against other major currencies; however, experts insist there is no explicit evidence that this is the case. Whatever the reason, households are likely to feel the squeeze on already stretched budgets. This will mean buying deals at the supermarket and if the children want new sports attire then getting them Cheap Football Kits. Help is at hand with families that need somewere to look for lower cost sports wear with kitking football kits. If inflation continues on an upwards spiral, as economists warn, many lower income families may struggle to make ends meet in the coming months, with the weakened pound potentially seeing increases costs for imported food and clothing

Benefits recipients hit hardest

This is particularly worrying for families receiving benefits, as many tax credits and benefits have been frozen by the government. These families are therefore unlikely to be able to keep up with rising prices and it is advisable for anyone struggling with debt problems to seek expert advice as soon as possible. A debt management solution such as an individual voluntary agreement (IVA) may be appropriate in some cases.

Swift action to take control of personal debt is essential at this time. According to the Institute for Fiscal Studies (IFS), over 11 million households will be £360 a year worse off should inflation rise to 2.8 per cent in the coming years, with this figure rising to £470 per annum for families that receive more in benefits.