Updated 04/08/2023

The cost-of-living crisis has been making headlines since 2021, and concerns are rising. With a number of factors affecting the lives and livelihoods of many UK citizens, this crisis’s reach is broad. The most affected, however, are the vulnerable of our society. 

In this post, Four Oaks Healthcare explains what this crisis is, what caused it, and the impact it has on vulnerable people. Keep reading to find out how your loved ones might be affected.

What is the UK cost-of-living crisis?

The UK cost-of-living crisis is an ongoing situation in which the prices for many essential goods are increasing faster than household incomes. This has resulted in a drop in real incomes, which affects everyone, but most particularly low-income persons, including those relying on pensions.

As we approach winter, people increasingly have to choose between buying groceries and heating their homes. A good illustration of this rising need is seen through the Trussell Trust network’s recent findings. They claim that, in the last five years, the need for their food banks has increased by 81%, resulting in them distributing over 2.1 million food parcels in a year period from 2021 – 2022.

Additionally, research from Age UK indicates that 1.6 million of the UK elderly population have or are going to have to cut back on their social care. 

What caused the cost-of-living crisis in the UK?

Three main factors caused this ongoing crisis. The COVID-19 pandemic, the Russian invasion of Ukraine and the rise in inflation in the UK have all contributed to this issue. The pandemic and the invasion have both had far-reaching consequences across the globe, but we will look more specifically at the effect of inflation, as this is more quantifiable and specific to the UK.

The effect of inflation

In the 12 months until August 2022, The Consumer Prices Index (CPI) rose by 9.9%. This inflation occurred while the rate of annual pay growth for total pay was 5.5%, and the annual pay growth for regular pay was 5.2% from May to July 2022. State pensions increased by only 3.1% at the start of this tax year in April.

Now, almost one year late, inflation is still causing issues, with the CPI increasing by 7.9% in the 12 months leading up to June 2023, and in October 2022, it reached 11.1%, the highest annual inflation rate since 1981. Between February and April 2023, the average regular pay of employees grew by only 7.2%, while pensioners saw a boost of 10.1%, which came into effect on April 10th. 

The significant rise in pension can be attributed to the triple lock commitment, which was reinstated after being suspended for 2022/23. While this increase is positive, the elderly are still struggling to make ends meet. 

The largest contributors to the CPIH inflation rate came from rising food costs, housing and household services, including electricity, gas and other fuels. This shows a worrying trend of basic goods and services rising in cost, which has a detrimental effect on the most vulnerable more than anyone else.

The effect of the cost-of-living crisis on the vulnerable

It’s positive to see that in 2023, pension rates were rising almost 2% more than the cost of basic goods and services. While this is a significant improvement from last year, it’s important to note that many pensioners are likely still recovering from the tough economic hit. 

Our elderly are the most vulnerable in our communities, alongside children and those with disabilities and different needs. With fewer resources to cover rising bills, the impact of the cost-of-living crisis may be severe, especially when considering that attentive care is required for many of these individuals.

Note: If you or a loved one requires care but aren’t sure of the costs involved, read this blog about how much care costs.