You and yours this morning,, feeling the pinch??

JaneJudge

GrannyGravy13

I have a horrible feeling that the U.K. will see lots of small/medium businesses close over the next 12-18 months along with the bigger companies laying off some of their workforce and not replacing those that leave or retire.

The above will just compound the problems for the U.K. economy, and those in the bottom percentage of income and job security will carry the burden.

I don't think that is true as many ar struggling to recruit and maybe the economically inactive will try and get more work?

Most of the "economically inactive" are students, are disabled or have caring responsibilities (for children and/or close relatives).

Pantglas2

“As Babyshark says, they were probably chosen as a family with which the average R4 listener would identify. Also, whereas £60k would be lovely as a pension, it's just about average for a working couple; and as they are a dual-earner family then as well as a mortgage, they will be paying two lots of tax and NI on that, as well as childcare - it won't go anywhere near as far as a £60k salary for a single-earner family.“

Not sure about the above Doodledog - wouldn’t a couple pay less tax between them than the single person?

Their total Tax&NI would be around £12000 leaving £48000 net income whereas the single earner family on £60000 would only have around £43000 net.

They'd have more in total, but there would be two adults to feed and clothe, pay for transport to work, etc.

JaneJudge

GrannyGravy13

I have a horrible feeling that the U.K. will see lots of small/medium businesses close over the next 12-18 months along with the bigger companies laying off some of their workforce and not replacing those that leave or retire.

The above will just compound the problems for the U.K. economy, and those in the bottom percentage of income and job security will carry the burden.

I don't think that is true as many ar struggling to recruit and maybe the economically inactive will try and get more work?

There will be no point recruiting staff if your cafe, restaurant, gym, hairdressers, beauticians etc have a dramatic drop in turnover due to lack of customers.

Added fuel costs, food prices along with additional transport costs will push all prices up and the above will become a distant memory for a large proportion of the population.

“As Babyshark says, they were probably chosen as a family with which the average R4 listener would identify. Also, whereas £60k would be lovely as a pension, it's just about average for a working couple; and as they are a dual-earner family then as well as a mortgage, they will be paying two lots of tax and NI on that, as well as childcare - it won't go anywhere near as far as a £60k salary for a single-earner family.“

Not sure about the above Doodledog - wouldn’t a couple pay less tax between them than the single person?

Their total Tax&NI would be around £12000 leaving £48000 net income whereas the single earner family on £60000 would only have around £43000 net.

Absolutely.
They represent the average working couple, I would think, going by what is deemed the average salary.

This is not in reply to you, Miss A; but to the people saying they don't have sympathy for the man on the radio.

I think things are going to get pretty grim for a lot of people, but competitive misery isn't really fair. We may as well say that people here will be cold and hungry, but they aren't as badly off as a family in Ukraine being starved out of a basement, or an orphan slum child in Calcutta. The point is not that some people aren't as badly off as others, but that most people aren't going to have the spending power they are used to.

If someone is used to a lifestyle that involved going out regularly, and then finds they not only have to stop that but also cancel Netflix, so even staying in has been 'downgraded', they are going to feel it.

Objectively it's not as bad as someone doing without more basic things, but unless we acknowledge that it is still a change in circumstances we are saying that only the starving should complain.

As Babyshark says, they were probably chosen as a family with which the average R4 listener would identify. Also, whereas £60k would be lovely as a pension, it's just about average for a working couple; and as they are a dual-earner family then as well as a mortgage, they will be paying two lots of tax and NI on that, as well as childcare - it won't go anywhere near as far as a £60k salary for a single-earner family.

That doesn't seem particularly high for a working couple. The median income was £31,400 in 2021. This couple are each earning just below that amount.

It will be a good deal more than many but they may be paying hight rents or a large mortgage. They will have outgoings relating to this income. I think Casdon put it very well in the post Mon 25-Apr-22 17:01:07.

People in poverty will be in worse poverty and the poverty premium they pay will increase. However, everyone, excluding the Rishi Sunak and those in his rarified world, will see their standard of living cut back.

Pinch?
I'm being strangled!

I think 'feeling the pinch' varies (dramatically) along with your circumstances and what you're accustomed to.

Those who are struggling now will find next winter really hard. Heating costs will rise again - and we may well have a really cold spell. I worry about the elderly, disabled and poorly - who really do need to stay warm.

Perhaps, if someone eats them regularly, they might not seem so odd.
Or, they were given a jar and didn't like olives so put them in the food bank.

I never thought of putting in vinegar, even malt vinegar.
But what's a chip without vinegar?

I agree, I regularly put in chocolate biscuits and treats for children, I just feel olives are an odd choice that’s all.

What's wrong with gruel?

GillT57

Some people kindly donate nice things like olives and chocolate and such because they realise that these little treats can lift the grinding day to day of finding it difficult to feed your family properly. If anyone says anything about being sensible and cooking from scratch I will scream loud enough for all of GN to hear.

A diet of baked beans, pasta, tinned soup etc could become very tedious.

I don't see why someone who has to go to a food bank shouldn't have an occasional luxury.

GrannyGravy13

I have a horrible feeling that the U.K. will see lots of small/medium businesses close over the next 12-18 months along with the bigger companies laying off some of their workforce and not replacing those that leave or retire.

The above will just compound the problems for the U.K. economy, and those in the bottom percentage of income and job security will carry the burden.

I don't think that is true as many ar struggling to recruit and maybe the economically inactive will try and get more work?

Some people kindly donate nice things like olives and chocolate and such because they realise that these little treats can lift the grinding day to day of finding it difficult to feed your family properly. If anyone says anything about being sensible and cooking from scratch I will scream loud enough for all of GN to hear.

Whilst we may sneer at those who have to give up their cleaners, having their nails done and their holidays don’t forget this trickles down and there is then an unemployed cleaner, beautician and airport worker. Holiday cottage cleaners are no longer needed, shop assistants in the posher shops, waiting staff and bar staff get the push and these are all lower paid workers who will then struggle in their turn.

Monica
Presumably not!
That would be silly.

I presume you do not get given cat food unless you have a cat!

I think you missed the point. It was to highlight that even middling incomes aren’t enough to afford a bit of nice extra food and a couple of entertainment subscriptions.

Remember that couple are probably at the start of a (more than likely) large mortgage. Not to mention cars, I can’t believe that my families 2 used cars bought 18 months ago are worth more now than what we paid them because of the demand.

It’s ok to scoff but 2 incomes are needed to buy a house now in most cases. But child care, even with family support can cost more than a mortgage replacement every month.

I have seen things in the food bank trolleys which I would struggle to use, a jar of olives, white wine vinegar, loads of cat food
There is usually a list of what’s most needed, and I can honestly say, I’ve never seen olives on it.

I didn't hear that part of the programme, I turned on late. What I got was discussion about helping people reliant on Food Banks make the most of what they are given, because, some Food Bank food gets thrown away because the recipients do not know what to do with it or how to conjure tasty meals from tinned and packaged food. One volunteer at a Food Bank had produced a book of recipes.

There were several other similar interviews. Perhaps the first one was done to show how cloth-eared and insensitive some of those well clear of the breadline can be.

I have a horrible feeling that the U.K. will see lots of small/medium businesses close over the next 12-18 months along with the bigger companies laying off some of their workforce and not replacing those that leave or retire.

The above will just compound the problems for the U.K. economy, and those in the bottom percentage of income and job security will carry the burden.

Oh, and £60k is not a huge income for a couple. Most people in their early 30s, a few steps up the career ladder earn this, all of my adult children do

Riverwalk

I didn't hear the programme - maybe they were pointing out that even on an income of £60k a couple are having to reduce subscriptions, eating out, etc.

You don't have to be at the food bank stage to be feeling the pinch.

I agree. I think the point is that even people who would be considered comfortable, are having to cut back, and apart from anything else this is bad news for an economy built on people buying stuff. For every comfortably off person cutting back, not eating out, not having their hair colour done, there is a small business not getting business. For every parent cutting back on after school activities such as music lessons, swimming clubs etc., there is a self employed tutor not getting business.

If people on that sort of incone are struggling to pay all the bills (which might include student loan debt and mortgage) then we should be very worried about the economy