Cost of Living Increases

I am very fortunate in that I've just moved to a supported living flat, where a main meal at lunchtime is part of the enormous rent/charges.

Even so, that rent is set to go up by 5% from April 1st (alas, my income, entirely from pensions [work pension plus state pension finally] is not) because of the risen fuel costs; when I shop for my breakfast and evening meal I find myself exclaiming silently at the price of thngs - How much for six apples???; and when my final rental expenditure has settled down, I'm definitely going to have to go back to a budgetting regime that I haven't done for years -
I call it my Tins on the Mantelpiece method:

I calculate what I have left after the DDs have gone out (direct debits, not dear daughters) and then divide up the rest into categories such as Household, Dogs, Car, Clothes, Gifts, Savings, Emergencies and others that I haven't thought through yet.
It all stays in the one bank account but mentally I've put £X in a tin on the mantlepiece for each, as for the milkman in days gone by, and physically I've created a word.doc page for each amount in and out. If it's not in its "tin", I don't spend it.

I find it a good discipline, and it really helps to keep check of what I've got, how much I've spent, and where I could cut back.

Surely it is very much individual choices
I can remember many years ago, when we were really struggling an article by a journalist saying how difficult life was for their family and they were actually having to consider having wine only at weekends now!!!!

Each person needs to decide what is really important for them. Heating is a must, a healthy diet is a Must. After that what else really matters? Particularly for the more elderly of us. Wifi to me is an absolute MUST also.

I gave up my car a few months back for a variety of reasons. Have good public transport where I live, as well as a daughter and Son-in-law who will help out for those journeys that require a car. My home is as I want it (except for my new kitchen being nstalled in May). I like to be able to give my g.children a small gift for birthdays, etc. I prefer to eat at home rather than out. Rarely go to theatre or cinema. My social life is mainly around groups in U3A, so I do have to allow about five pounds each week towards those.

As I neither smoke nor drink alcohol (do not like the taste), provided I have my tea (loose not bags), I am quite happy, it is reasonably easy for me to live well within the means of the State pension, even with increased prices at present.

It is about choices, of course. However, some people will be left with choices no one should have to make.

In our family, we call the budgeting method described as the "coffee jar" method. I use a spreadsheet rather than Word as it can be set up to do the calculations for me. All expected outgoings for the upcoming month are listed at the beginning of the month and I then copy over the actual payment, as it goes out of the bank below this list, as they are paid. I then delete the anticipated amount above. I have an amount for food from which I delete the weekly shopping so it reduces through the month. There is an amount is in the budget (coffee pots) for things other than food, one for hairdressers and one for any savings I can make. The "other than food" amount is transferred to a separate bank account and this pays off my credit card at the end of each month. I use a credit card but not for credit, if you see what I mean. I buy almost exclusively online and this gives me more protection. I see it as extra insurance. I check the main spreadsheet daily and it gives me great peace of mind. It means nothing is left to chance

Ailidh, and others who pay service charges and rent. If your income (from all sources) is not much above the Pension Credit rate and you are on the old State Pension or not much above the basic rate of the new State Pension it is worth checking on a benefits calculator whether this "reduces" your income enough to make you entitled to benefit. There is a "Pension and Benefits" Forum on GN with lots of lovely, helpful people if you have questions.

One other thing I should have mentioned for anyone who finds they are struggling - and who knows what this year will bring.

I remember watching a programme where the person was on an exceptionally low income but she had always managed - and then she couldn't. She had a spreadsheet and knew how to budget to the penny. She had enough income to offset her outgoings (just). But she was still going into overdraft at some point each month.

When the programme help team looked at her budget, they found the problem was her DDs were going out before her income came in. They rang the companies and asked them to change the date and everything fell into place. It was as if this very efficient woman had frozen from fear and could not look past the problem. Help is sometimes not about getting more money but about reducing the anxiety a low income can produce.

There are just certain things I will do without. Heating and food are my priorities. I don't go out an awful lot and don't see that changing. I never really holidayed abroad( only on special occasions), so it's not as if I will miss that either.

I live alone with just my salary as income and manage pretty well.
My bills are paid, I have no debt, apart from a fairly low amount on a credit card and I am able to save a little.

Today I received a revised Direct debit notification from my energy company, I currently pay £96 per month for gas and electricity. From March they are requesting £232 per month!
I'm stunned and actually beginning to feel a real element of concern.

Dee1012

That is a lot more than 40% increase (which is what it is going up by) and I am fairly sure that they can’t increase the DD without your permission. So I suggest you message them and offer a smaller amount, then after a few months you will be able to see for yourself what you are using.

DaisyAnne, good to hear about your coffee jars!

I've never learnt how to do spreadsheets but I find totalling things up quite therapeutic, so that's OK.

Thank you for the pensin/benefits information.
I'm on the new state pension, just got it last year, although I retired nearly 8 years ago on health grounds. It's not the full amount but I am disposed to believe it's the right amount due to a works pension being contracted out . Or something. Slightly ashamed to say I don't understand.

I Am eligible for housing benefit but not a vast amount. The House manager is dealing with it, with my permission, although I'm not convinced more will be forthcoming. It's doable. Not fun, but doable.

I know I can cut down on some things but some people have no leeway and end up not being able to afford essentials.
I will be looking at my shopping lists to see what is not really needed like chocolate ? and check my account more carefully.

I have always been a careful budgeter and saver. I used the Microsoft money programe for years until it was discontinued. I now run a couple of apps on my phone (wallet) and on my iPad (balance guide). I list direct debits and every transaction that I make on a daily basis on both apps, they are slightly different. At any point I can see exactly what is in my accounts and what the end of month balance. Then on a daily basis I divide this by the number of days left in the month. So for instance I have £30 per day and I only spend £20 then I know that I’ve got £40 that I can spend the following day or a little bit more each day till the end of the month. This is quite time consuming but worth it. I can see my daily balance increase as the month goes on if I’m careful then I know that I can splash out a bit towards the end of the month.
This works for me and I’ve never been in debt in my life. However I’m dreading the time when my gas and electricity accounts ends the fixed rate period which I arranged last summer for 2 years runs out. I suspect that im in for a huge shock.

I use a spreadsheet for what was the old " envelope system ". When we retired we budgeted for each "pot" and for annual increases until we get to state pension age . We also factored in a bit of a buffer in case prices when up more that expected. Even with all this planning we never imagined the huge and immediate rise in energy costs alongside rising food prices . Now our extra money from the small amount of work will be more of an essential than a luxury but I am grateful we can still cover all the basic bills and dont ( as yet ) have the heat or eat dilemma, which I know is a reality for some people of all ages .

We've noticed the increases but are fortunate that they're not causing any problems despite the fact I wont be eligible for my state pension for another 4 years I think.

We've budgeted for our gas and electricity bills to double.

Definitely contact them . Unless you have been paying estimated bills and you are already in debit this is far too high an increase. EON have increased our DD by approx 1/3 . Do you have a smart meter installed ? .

Thanks to those who responded.

My previous provider stopped trading so I've been transferred to EDF.
Despite submitting meter readings when requested, this is all based on estimated readings!
I'm hoping it will be resolved when I actually manage to get in touch with someone. I've tried for 2 days and eventually emailed.

Dee , check their estimates against your actual readings . This will give you an idea of how much the estimated cost differs , if at all., from what you have paid . You may be better to switch to a new provider if you feel their DD is not realistic.

Microsoft money may have been discontinued, but it still works fine. I have it on windows 11 without any problem.

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The old adage “Look after the pennies and the pounds will look after themselves” isn’t quite true, but provided calculations show there is enough coming in to balance the books, being careful with everyday spending is an attitude which pays off. I’m fortunate to have enough coming in to live on, but I consider carefully what I spend.
My Direct Debit for energy has gone up hugely, but with Octopus I can control it, so I am reducing the amount, otherwise it builds up too much credit over the summer. I’d rather put the spare money into my own savings, (attracting interest) to cover the winter months, than give it to the energy companies to save for me.

My DD for fuel has come down so that's good for me.
I've got to the stage now where I don't worry about money.
I know what's in the bank account and if I can afford it and want something I buy it . I always get by some how.

I can’t believe this government thinks we are £500 quid better off, our bills are extortionate. I’ve stopped using my credit card, I take cash out of the bank machine & stick to a budget, otherwise I usually overspend. Luckily I can knock up good, nutritious meals from not much.
It’s these young ones/ families I feel sorry for, who can’t cook a boiled egg. Goodness knows how they afford takeouts.

It's all a bit depressing really.Probably shouldn't have looked but my pension pot has plummeted by at least 15% thanks to Trump and although the advice is to wait for recovery easier said than done at our age just as we are about to start drawing some down.We've weathered slumps before when DH lost his business in the recession early 90s.Then redundancy years later.The covid hit our finances. It just feels the older you get the less time to catch up and rising costs of everything-aaargh !

Definitely a significant rise in the cost of living and no end in sight

I am coping now by dipping into my savings, several bills came this month. I also pay into various savings accounts with high interest rates, all mature just before christmas. It is very helpful for the bills that start coming soon after christmas. Halifax, principality, nationwide

I will not be stopping organic food and now have an allotment. Only me at home. My varied hobbies are very important to me but I accumulated a lot of stash over many years, fluff for spinning, yarn for knitting , patterns and fabrics for sewing. Books by the score mainly from cs and my 3 bikes were bought quite a while ago, they have different purposes and all are used. My hobbies are at no cost at present

Washerwoman, I used to trade shares then I took over managing my husband pension pot. He died and soon afterwards I put everything into low risk gilts. This means that I get a fixed income, same as an annuity but when I die, the gilts will still have a value, they will not die with me

Everyone close to retirement should put their pension equity into a low risk vehicle. I have seen a few of these dreadful sudden share plunges , they go down fast and take much longer to recover. Next stage is businesses suddenly closing, when all share value in that company becomes zero

Mt61

I can’t believe this government thinks we are £500 quid better off, our bills are extortionate. I’ve stopped using my credit card, I take cash out of the bank machine & stick to a budget, otherwise I usually overspend. Luckily I can knock up good, nutritious meals from not much.
It’s these young ones/ families I feel sorry for, who can’t cook a boiled egg. Goodness knows how they afford takeouts.

I have heard this said by the government, followed by ‘by the end of the parliament’, i.e. 2029, but afaik the OBR haven’t predicted this. Jam tomorrow if you’re lucky. I’m more interested in today.