The cost of living crisis doesn’t only impact on households. Charities are struggling too, just at the point when many of them are needed most.

For many of us, tightening our belts is no longer a choice and we have little spare money, so donating to charities is harder than ever.

This has been dubbed the ‘cost of giving crisis’.

So, how can we help? Are there ways to help charities when you don’t have much money?

Here are some ideas for offering practical support to charitable organisations.

Organise work/school/college events

Make your fundraising efforts more effective by roping in colleagues to organise work events, or enlist your fellow students to help raise money.

Such events can encourage team building, raise morale in the workplace, and encourage donations.

You could have a monthly bake sale, create a bookstall with an honesty box, have dress-down days or a bring-and-buy sale. A group of you could take part in a sponsored walk, Race for Life, or an Easter egg hunt.

You could even do a sponsored abseil or get your head shaved if you are feeling brave!

Some employers will consider matching the amount you raise, so don’t be afraid to ask.

Individual efforts

If you don’t have a workplace you could host a coffee morning at home, ask your friends and neighbours to donate their unwanted stuff and run a car boot sale, or knit, crochet and craft items to sell.

If you are fit and well, you can sign up for a sponsored walk or run.

Reverse advent calendar

When I worked in an office, a popular way to help our local food bank was to do a reverse advent calendar. This can be done with your kids at home, too. 

The idea of a reverse advent calendar is that, instead of opening a window of your calendar each day and taking out a sweet or other treat, you get yourself a box and put an item of food or toiletries in.

For example, one day you could add a can of baked beans, the following day some pasta, a pack of soap or toothbrushes, pet food, or a box of Christmas treats, all the way to Christmas Eve.

In fact, we used to start in mid-November, so we could take our donations to the food bank in time for them to be distributed for Christmas. You can find out where your nearest food bank is and the items they currently require on the Trussell Trust website.

Volunteer

The heart and soul of many charities is their volunteer workforce. If you are time but not cash-rich, you can support charities in various ways.

All kinds of skills and life experiences can be put to good use, from book-keeping for a small charity, helping with their social media, working in a shop, working at a food bank, assisting with conservation or wildlife projects, walking dogs and cleaning cages at a rescue shelter, or training as a guide for a heritage organisation such as the National Trust.

You are likely to benefit from volunteering, too, by making friends, gaining work experience, getting out and about and learning new skills.

More from Shoestring Jane on Mouthy Money

Donating and buying in charity shops

As we approach Christmas, it is the perfect time to make some space by clearing out your unwanted books, clothing, toys and household items to take to a charity shop. 

While you are in the shop, see if there is anything you need. At this time of year, you may find Christmas jumpers, decorations, stocking fillers and gift sets on sale, giving you the chance to save money whilst supporting the charity.

Gift aid

If you are a taxpayer, be sure to tick the gift aid box on any charitable donations you make. This will increase the value of your donation by 25% at no cost to you. Many charity shops will also ask you to sign up for gift aid when you donate unwanted items.

There is more information on how gift aid works here. 

Campaign for charities

Some charities request help supporting their campaigning efforts.

For example, Age UK are requesting signatures for their petition to save the winter fuel allowance, and for people to write to their MP on the subject.

The Trussell Trust is campaigning for an Essentials Guarantee from the Government to help prevent people on Universal Credit needing foodbanks.

It will cost you no money to support campaigns close to your heart and usually just requires the time it takes to shoot off an email or letter.

Payroll giving

If you are in work, talk to your employer about offering a payroll giving scheme, where an amount is donated at source.

Many people would like to make a regular charitable donation but don’t get around to organising it. Payroll giving means employees can make regular donations without paying tax on them.

The perfect storm

Like the rest of us, charities are facing increases in their costs and their services are more in demand than ever.

However, they are simultaneously experiencing reductions in donations, leading to the perfect storm. Many charities are struggling to survive.

By offering practical support, you can help charities when you don’t have much money to give them.

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Many of us are still feeling the pinch. The cost of living crisis hasn’t gone away!

It’s easy to feel deprived when you need to cut back, but I have found that some frugal swaps can allow you to retain a good lifestyle and you will barely notice the difference. 

Here are some ideas for frugal swaps to save you money without feeling disadvantaged.

Swap disposables for reusables

Although these might cost a little more to begin with, buying reusable items wherever you can will save money and are more eco-friendly. 

Such frugal swaps might include:

• Cotton wool pads for washable bamboo alternatives
• Reusable razor (you will still need to replace the blades, but if you rinse and dry the razor between uses they will last longer)
• Beeswax wraps instead of cling film – they last for years
• Sanitary products like cloth pads or a Mooncup
• Washable nappies instead of disposables

Swap laundry products for an Ecoegg

On a similar theme, investing in a reusable laundry egg, such as an Ecoegg, can save a lot on your usual laundry liquid or powder detergent. 

The plastic eggs are filled with pellets that help lift the dirt from your laundry without using chemicals. They need to be refilled every two months or so and, in my experience, work pretty well.

I have found that very dirty or stained clothing may need to be pre-treated with a stain remover before washing, but I think that’s the case with many detergents, too.

To give you an idea of the potential savings, you can purchase an Ecoegg starter kit with enough pellets for 50 washes for just under £8 on Amazon. After that, you can buy refill pellets for around a fiver each time you need to.

A 1.4 litre bottle of Persil laundry liquid will set you back £9 in Sainsbury’s currently, which will give you 52 washes. 100 washes with the Ecoegg costs approximately £13, as opposed to £18 if you buy the branded liquid.

Swap your dryer for the washing line

Even though our energy bills are dropping a little, it still pays to swap using your dryer for line drying wherever possible. 

Invest in an airer to help dry your laundry indoors. A heated airer will speed things up whilst still using considerably less energy than a tumble dryer.

Clothing lasts longer when it isn’t machine-dried. Where do you think all the lint comes from?

Swap frequent shopping trips 

If you are anything like me, if you go into a grocery store, you are likely to come out with more than the one item you popped in for! 

Lots of small shopping trips, especially if you use convenience stores, can drain your wallet. Instead, try a more organised approach. Plan your meals and write a shopping list so you can buy everything you need weekly or fortnightly with as few mini trips to top up as possible.

Swap going out for staying in

We all like to get out and socialise once in a while, but if you usually make many trips to restaurants, pubs, cinemas, etc., think about some cheaper options.

Could you invite friends over for drinks and snacks, have a games night, or host a potluck supper (i.e., everybody brings a dish or two to share)? 

If you have children, this frugal swap has the added advantage that you won’t need to pay a babysitter!

Swap branded medications for generic ones

I am often amazed at the price difference between branded products and generic items when it comes to things like paracetamol, ibuprofen and cough and cold medications.

Often, when you study the ingredients, they are identical. Rather than pay for the marketing, buy the retailer’s own version.

Swap out dry-clean-only clothing

Search out washable clothing wherever possible. Dry cleaning is expensive!

Having said that, I have frequently found that some garments marked as dry-clean-only are fine when hand-washed. You can also purchase dry cleaning kits to use in your dryer, which are much less expensive.

Swap to free books and audiobooks

Take advantage of the books and media available for loan at your library. In addition, get the Borrowbox app, which allows you to listen to audiobooks for free, as well as read e-books when you can’t get to the library.

I am addicted to Borrowbox and have an audiobook on the go constantly.

Swap to cash

If you are an impulse spender, take out a budgeted amount of cash each week for general spending. Once it has gone, that’s it!

I always think that cash is harder to spend psychologically. You really feel it when you physically hand over notes and coins. Having said that, it is actually becoming harder to spend as some retailers now refuse to take cash, so bear that in mind, too.

Grocery swaps

You can save money on food by swapping to supermarket own labels, rather than branded items. However, there are other swaps you can make, too. For example:

• Replace chicken breasts with cheaper thighs
• Swap fresh vegetables, fruit, fish and meat for frozen versions
• Replace some meat dishes with egg recipes, such as omelettes and frittata
• Swap jars of pasta sauce for homemade, using tinned tomatoes, onions, garlic and herbs. If you make several batches at once and freeze some, you will save time too
• Swap fresh fish for tinned fish like tuna, sardines and mackerel

What frugal swaps have you made to help save money?

Photo Credits: Unsplash

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This Summer Mouthy Money collaborated with its sister business MRM to produce the latest Money Matters Index report.

To follow on from the report a group of financial services experts, including Mouthy Money editor Edmund Greaves, joined a roundtable to discuss its findings.

Other experts on the panel included interactive investor’s senior personal finance analyst Myron Jobson, Sarah Marks, chief executive of financial education charity RedSTART, financial wellbeing consultant Paul Chedzy and founder of Money Means and Mouthy Money contributor Helena Wardle.

Here’s what Edmund told the panel, including why the UK has a problem with “Martin Lewis” disease, why we need to earn more, and why we need to build for the good of the country.

If you’d like to read the full roundtable report, click here.

Should people in the UK accept that they are now worse off financially?

I don’t think people should just accept they are financially worse off from now onwards, although the past two years have been bad, and people are currently worse off in financial terms.

But we’ve developed a kind of ‘Martin Lewis disease’, where everything is about pinching pennies, ‘where can I save?’ and ‘what costs to cut?’ – and we’ve totally forgotten about what it’s like to earn more money.

How do we go out there and make more of our wages? Wages are rising above inflation, which means many will start feeling better off again. We need to get out of the mindset of having to scrimp constantly.

Although this can be important, it shouldn’t be at the expense of thinking about how to get a wage rise or how to start a business that will earn more money than being a salaried employee.

Another issue is that many places don’t talk about pensions, investing, and long-term wealth – that piece of the conversation is often missing. While there are obviously people on the knife edge at the moment, I don’t think it’s beyond redemption at this point.

How will it change the way people in the UK think and feel about money over the long-term?

Rising energy prices are one of the big drivers for the cost-of-living crisis, but these impact different people in different ways, as the energy bill goes up similarly for households despite income differences.

However, some people are still taking holidays and still paying for things, and those who can spend are still spending rather than cutting back.

On top of this, other companies have happily pushed up their prices by more than inflation and people are still buying them. In terms of outcomes, the one big thing is the return of pay bargaining, which could be transformative for the economy and country more widely.

Meanwhile, renters are typically struggling, and could create an entire generation who’ve been unable to fulfil life choices that they want – such as affording to buy a house, getting married or even starting a family while you don’t have that stability at home. We’ll only learn the consequences of that in years to come.

How will this new era impact things like financial aspiration or financial inclusion?

A demographic shift to an ageing population would be a real issue, with a decreasing tax-payer base. Building more houses is the simple solution, so that more people can have their own homes and start their own families – and have a fair shot.

What can we do to diffuse some of these ticking timebombs in the short to medium term?

It’s easy to be pessimistic about it, and a change of government may not necessarily change the outlook. Even a seemingly simple solution of building more houses becomes extremely complicated when you look into it – as you need things like schools and doctors to go with it.

It’s economic growth that creates solutions, but there are coalitions of voters against this – where MPs are anti-development because it plays to their constituents’ views. The upshot is real progress must come that some people are not going to want, but unless something is done to rectify the problems we face then other more powerful changes could take over.

We need to fix retirement policy and create a better way to help people retire than we have currently. People have been encouraged to hoard their wealth in their homes and other property which has created a lot of unintended consequences that are the source of many of the UK’s biggest issues.

Another bugbear we have with the government, regulators, and financial services is financial products are quite complex and make people need advice to understand them. The whole system is not easy to navigate, and we need to make things simpler.

if there’s one conclusion to draw from the discussion around the cost-of-living crisis and the financial services industry, what do you think that should be?

Ultimately, people’s future should be in their own hands. Financial services and government just need to help people make the right choices on their own terms and empower people to come to the right decisions that benefit their long-term future.

Significant change in the way we have conversations around long-term wealth is needed too. The cost-of-living crisis is now changing and when it comes to pay bargaining and people talking more openly about money, then maybe it’s time for this change to take place.

Edmund Greaves is editor of Mouthy Money, a personal finance community comprising real people talking about real dreams, successes, and failures when it comes to their money.

Formerly deputy editor of Moneywise, Edmund covered the full spectrum of financial services, from investing, pensions and savings to day-to-day budgeting.

Edmund started in journalism as a political writer, editor, and consultant in the European Parliament in Brussels, before moving into financial journalism in London and later financial PR and latterly content as Head of Editorial at MRM.

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It used to be so easy for us money savers.

If we needed to shave some pennies and pounds from our grocery budgets, we headed straight for the bottom shelves in the supermarkets, where the cheapest baked beans, spaghetti hoops and pasta were to be found with easily identifiable budget branding.

But what has happened to supermarket value brands, most of which seem to have disappeared? The picture seems somewhat unclear at a time when many families are struggling the most.

First, we had the distinctive blue and white stripes of Tesco’s Value range, the orange Sainsbury’s Basics brand and Asda’s plain Smart Price offerings.

The supermarket price wars being waged when these were introduced in the 1990s meant that you could at one time pick up a can of beans for 3p and a loaf of bread for just 7p.

These brands may have been no frills, but they were excellent value for money. Although occasionally renamed and redesigned over the years, the ranges were still recognisably the best value. However, the picture is not so simple for the bargain hunters amongst us now.

Brand snobbery

Back in 2012 that Tesco revamped its Value range to spare the embarrassment of its customers. Renamed Everyday Value, the updated range boasted of being better quality and having fewer additives, as well as looking less obviously the cheapest of products on offer. However, it was still easily recognisable as a budget brand.

There was always a certain amount of shame among less well-off shoppers about resorting to the budget ranges. Lower prices tend to be associated with poorer quality, even when it isn’t necessarily true.

Personally, I had a family to feed on a limited budget, so had no compunction about buying such products. I would try them once, and if I didn’t like them move up to the next level own brands.

However, as Aldi and Lidl arrived and began to offer real competition to the larger supermarkets, the no-frills ranges became less popular. Customers could purchase items just as cheaply but with none of the stigma that might have come with buying a Value, Basics or Smart Price offering.

The budget brands weren’t offering the solution the big three supermarkets had hoped for in their battle against newcomers Aldi and Lidl, and they began to change their approach.

The arrival of phantom brands

So-called ‘phantom brands’ have now started to take the place of the original value ranges. These are own brands (also known as private labels) in a different format.

They have no reference to the supermarket and don’t carry their logos, so it isn’t obvious that they are private labels. They are given wholesome names such as Mary’s Dairy and Willow Farms and have eschewed the stark and basic packaging of the value brands for a softer, more general look.

As a result, customers perceive them as superior to the very basic ranges, although still very good value. 

In this respect, the big supermarket chains are simply playing catchup with Aldi and Lidl, who have carried dupes of everything from cornflakes to candles since their arrival.

Aldi’s popular private labels include Choceur, Cucina, Specially Selected and Bramwells, whilst at Lidl you can find Batts, Gellatelli and Deluxe.

How to identify the budget labels

So, how to identify the private labels? Phantom brands seem to muddy the water somewhat for the frugal shopper, although a simple price comparison will quickly identify the best-value products. 

At Tesco’s, private labels include Creamfields, Butcher’s Choice, Rosedene Farms and Eastman’s.

In Sainsbury’s you will find Hubbard’s Food Store, The Greengrocer and Stamford Street Food Company.

Asda’s approach

Asda has taken a different route from the other supermarkets, retaining an easily identifiable no-frills private label in the form of its Just Essentials range, launched in Just Essentials has been a big success for Asda: 

“Excluding fuel, like-for-like sales jumped 9.6% in the three months ended June 30, while revenue reached £5.4 billion (€6.2 billion).”

With the cost-of-living crisis ongoing and many families struggling, choosing budget private label ranges over their much more expensive branded rivals is a no-brainer.

Although it is more confusing, once you become aware of their existence, the cheaper brands will jump out at you, and you will know what to look for.

Do you regret the passing of many of the no-frills budget grocery brands, or have you embraced the new private labels? If you find it confusing, let me know in the comments below!

Photo Credits: Pexels

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From the end of the cost-of-living crisis, to falling house prices, and how to be a football fan without breaking the bank – here are our favourite must know money stories this week to help you get your head around your personal finances.

Rising wages forecast to ease cost-of-living crisis

Average pay rises could be about to overtake inflation for the first time in 14 months, reports Oliver Wright for The Times.

New inflation figures and average earnings data for the last month are due to be released next week. According to the Bank of England’s forecasts, inflation is expected to slow down to around 6.8%, and wages are expected to rise slightly more than 7%.

Ashley Webb, UK economist for Capital Economics, said: “There isn’t a perfect way to define the cost-of-living crisis but a good proxy is when CPI inflation is above average earnings growth. So, based on this measure that uses growth rates, the cost-of-living crisis appears to be coming to an end.”

While economists say there are signs wages will grow faster than inflation at least until 2025, these wage rises will make it harder to bring down inflation to its 2% target set by the Bank of England.

Furthermore, homeowners might find that these wage rise benefits will be offset by rises in rents and mortgages.

House prices edge down, but market proves resilient

House prices fell by 0.3% in July, according to data released by the latest Halifax house price index yesterday. An average UK home is now worth £285,044 – 2.4% less than house prices a year ago.

While this was the fourth consecutive monthly decrease, prices have only changed a little over the last six months. The rate of annual decline also slowed down from -2.6% in June to -2.4% in July.

There are indications of first-time buyers turning to smaller, more affordable properties to offset the rising mortgage costs. The buy-to-let sector also remains under pressures. However, wider economic factors such as the strong wage growth, currently over 7%, suggest a promising path ahead for the UK housing market.

Kim Kinniard, director at Halifax Mortgages, said: “The continued affordability squeeze will mean constrained market activity persists, and we expect house prices to continue to fall into next year.

“Based on our current economic assumptions, we anticipate that being a gradual rather than a precipitous decline. And one that is unlikely to fully reverse the house price growth recorded over recent years, with average property prices still some £45,000 (+19%) above pre-Covid levels.”

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown commented: “Big challenges remain, we’ve seen borrowing costs stabilise in recent months, but they remain much higher than many have become used to and there is no sign of them coming down significantly any time soon.

“This squeeze means we are likely to see prices fall further over the coming months though the index suggests more of a soft landing than a crash.”

Be a football fan without breaking the bank

As the new Premier League season nears, Miles Brignall writes for The Guardian ways for all football fans to watch their favourite, local team and save some money.

Season tickets are still popular but there is no denying that they come with a substantial price tag. With some season tickets up to £3,000 (and cheaper ones for League Two clubs) or many in-demand clubs charging fees to even join waiting lists – it’s worth thinking twice! Most clubs also don’t allow sharing season tickets with friends, but many have measures in place that you might be able to work around.

One-off tickets are almost impossible to get a hold of too. So, a good way to see your team for cheaper is buying tickets for League Cup matches, known as the Carabao Cup.

Another way is watching academy games. For example, Manchester United’s under-21s play their home fixtures not too far from Old Trafford – and entry is free!

You can always watch live football on TV – via subscriptions with TNT Sport, Sky Sports, Now TV, or others – or head down to a pub to watch the game. They continue to be the low-cost options if you don’t end up spending tons of food and drinks, plus, there’s an added communal experience.

Photo credits: Unsplash

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From households struggling with mortgage payments, to shoplifting being on the rise, and millions using credit to pay basic bills – here are our favourite must know money stories this week to help you get your head around your personal finances. 

‘Mortgage help’ Google searches skyrocket 1,366% 

‘Mortgage help’ Google searches skyrocketed by 1,366% in the past month, according to analysis by mortgage broker L&C Mortgages.

Following numerous base rate hikes from the Bank of England, the term ‘mortgage help’ was searched for at 10 times the normal volume – reflecting financial stress among mortgage holders amidst rising rates.  

Other highly searched terms in the past 30 days included: ‘how to afford mortgage’ (324%), ‘mortgage support’ (213%), and ‘remortgage (106%).  

Increasing fixed-rate mortgage costs are adding financial pressures on the finances of Brits and triggering a surge of uncertainty for both mortgage holders and renters alike.  

A spokesperson from L&C Mortgages said: “There are still plenty of deals available for borrowers looking to switch, but remortgaging a home is a decision that should be made with thorough research and help.” 

If you need to remortgage, speak to a broker and shop around for the best available rates.  If you are struggling for tailored support, speak with your lender before the situation becomes untenable. 

‘The cost of living started my shoplifting’ 

Stealing goods is on the rise, reports Ez Roberts for BBC News as shoplifting incidents in the UK saw a significant 30.9% year-on-year rise as of March this year, pushing shoplifting back up to pre-pandemic levels. 

According to the British Retail Corsortium (BRC), shoplifting cost retailers almost £1bn in 2021-22. Tom Holder from the BRC said: “Only about 5% of shoplifters we catch go to court, so you can’t ask most people why they’re doing it.” 

Roberts investigated this to find out the ‘why’ and received varied answers. 

Some shoplifters believe food should be affordable for all, and one should not have to make the choice between basic necessities and leisure spending at all.

One said: “I only steal things I need but I can’t afford,” while another commented: “If I was earning enough, I’d probably stop.” 

On the other hand, a supermarket manager said little is done about shoplifting and the police aren’t interested – making it easy for people to steal.  

Millions use credit to pay basic bills 

2.3 million low-income UK families have reportedly taken out loans or used credit to pay for basic bills during the cost of living crisis, report Michael Savage and Skyler King for The Guardian.  

According to an analysis by the Joseph Rowntree Foundation (JRF), nearly six million low-income families have unsecured debt – such as credit cards, overdrafts, and personal loans. 

However, the use of credit is not preventing households from falling behind with payments – and families are warned of the ‘debt timebomb.’ Three-quarters report arrears with at least one household bill or lending commitment, with 44% in arrears with three or more bills. 

Rachelle Earwaker, senior economist at JRF, said: “Despite inflation falling back, we risk the tragedy of a second wave in this crisis, as millions of people struggle to maintain their borrowing in view of rising interest rates.  

“The fragility of the current situation ought to be a preoccupation for policymakers everywhere, but on the contrary, it is in danger of being overlooked. While rising mortgage costs dominate the national conversation, the affordability of short-term credit should also be a factor of vital concern.” 

A government spokesperson said: “We know people are struggling with rising prices, which is why we are delivering support worth on average £3,300 per household, uprating benefits in line with inflation and have increased the national living wage.” 

Photo credits: Pexels

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From wages rises fuelling inflation, to over-50 pandemic retirees being ‘much poorer’, and the upside of generation rent – here are our favourite must know money stories this week to help you get your head around your personal finances. 

Wage rises fuel inflation, as real pay falls behind 

Regular pay grew by 7.3% between March to May 2023, according to the Office for National Statistics (ONS) equalling the record growth rate set last month. But with inflation currently at 8.7%, real pay is still lagging in real terms. 

The increase has put further pressure on the Bank of England to continue hiking rates in its attempt to slow price increase and cool the economy. Concerns over strong wage growth remain as it feeds consumer demand and further forces companies to increase the prices of their products – a so-called wage price spiral.  

While a higher wage means you have more money to spend out of your pocket, it is certainly not keeping up with inflation either – regular pay fell by 0.8% overall, after accounting for inflationary impact. 

Sarah Coles, head of personal finance, Hargreaves Lansdown comments: “Somehow, pay is simultaneously too high for the Bank of England’s liking, and yet too low to keep up with inflation.” 

The Bank faces the challenge of carefully working around the tight labour market to end the vicious cycle of inflation and rate rises without hurting the incomes and employment of UK households.  

She added: “It’s likely to mean both that interest rate rises are on the cards, and that more interest rate rises could well exacerbate growing weakness in the jobs market.”  

The upside of generation rent 

Amid turmoil in the housing market, “renting is largely risk and responsibility-free, unlike owning a property,” writes Ben Wilkinson for in The Telegraph. 

While today’s tenants feel the squeeze of the sharp rent rises and competition in the property rental market, things are not quite rosy for landlords and homeowners alike.  

Many have stretched themselves to get on the ladder at the peak of the market – and are now facing punishing mortgage rises, the burden of monthly payments and commitment to decade long contracts, along with the threat of the housing market crashing down. 

On the other hand, renting is risk and responsibility free, according to Wilkinson. Renters have short-term contracts and no maintenance responsibilities – giving them the ability to move easily to access better opportunities in different locations.  

While renters are not immune from surging housing costs and there is a need for better regulation to root out unfair landlords – in the current situation with wobbling house prices, the heavily-mortgaged might wish they were renting.  

Over-50s pandemic retirees are ‘much poorer’ 

People over 50 who left work during the pandemic are “much poorer” in general than other retirees, reports Jemma Dempsey for BBC News. 

Research from the Institute for Fiscal Studies (IFS) shows that 48% of those who retired in 2020-21 were now living in relative poverty. The report found that they cut their food spending by £60 per week on average and nearly half of them had no access to either private or state pensions.  

Older workers between the ages of 50 and 70 who left in the first year of the pandemic were “not retiring in comfort”, the IFS said, compared with those who had retired even just a year earlier.

The study noted that older people who stop working often never re-enter the workforce. “This group may be experiencing long-term poverty and greater hardship in the current cost of living crisis,” it said. 

Chancellor Jeremy Hunt has made it a goal to encourage the over-50s back into the workplace.  

“We have recently committed £70m in back-to-work support for the over-50s including a new online Midlife MOT launched this week,” a spokesperson said. 

Photo Credits: Pexels

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The cost-of-living crisis has rumbled on for more than a year. But where is the Great British public now, after so much time dealing with soaring living costs?

This is the focus of the latest Money Matters Index from MRM, in partnership with Mouthy Money.

The results of a nationally representative poll of 2,000 18-65-year-olds found tensions building further, but as of yet households are still coping.

Nearly half (47%) say their discretionary income – beyond essential bills – has dropped. Curiously enough, worst hit in this category were hairdressers and chip shops!

Worryingly, more than one in three (36%) say their monthly income is no longer enough to meet their monthly outgoings.

A massive three quarters (75%) say they’ve struggled to save money in the past year or haven’t been able to save at all. This points to growing pressure post-pandemic on the financial cushions households have in place to meet surprise bills and cost increases.

16% of respondents say they’re using credit to meet everyday expenses, even as debt becomes more expensive to maintain as interest rates rise.

The Mouthy Money view from co-editor Edmund Greaves

Britain is at real risk of embedding persistently higher inflation thanks to weak, or even facile, institutional policy responses to the problem.

The Money Matters Index shows Brits are finding it as hard as ever to maintain lifestyles. But as they push harder to gain wage increases this is only going to make the situation worse, and harder for the Bank of England and Government to overcome.

As Chris Tuite points out in the report – are you really willing to accept that you may be poorer?

A few glib words from an MPC member aside, this question is something that vexes households up and down the land. But far from sinking into the abyss, I’d bet people will fight harder to earn more in order to maintain those lifestyles they’ve become accustomed to. This means more and harder pay bargaining.

With debt getting more expensive, this leaves the economy in real danger of stoking a wage-price spiral – something that other major economies such as the US just aren’t experiencing, as variable core inflation figures suggest.

So people earn more money, what’s the upshot of that? When the economy comes back to earth – and the overheating inflation causes guarantees it – it will fall harder, and more people will lose their livelihoods.

We’re being awoken from the zombie economy, maintained for over a decade by aggressively low rates. Once the dead wood begins to ‘fall away’, it’s going to leave behind a trail of destruction.

The Government doesn’t have the answer to these questions. Most recently, it has mooted frankly stupidly thought through ideas such as price caps in supermarkets to quell rising food costs, amid a slew of other half-baked, contradictory, or cringingly political decisions.

Until institutions of the British state stop fiddling while Rome burns, the country will

be nowhere near beating persistently higher inflation and the economic crash dangers that poses for us all.

Find out more and read the full Money Matters Index report

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Shoppers are struggling with astronomical food price rises at the moment. Here’s some ways to beat the costs.

Inflation is one of the biggest issues in the UK at the moment, and has driven a cost-of-living crisis that has rumbled on now for over a year.

Overall, inflation has reduced slightly with the annual consumer price index (CPI) measure at 8.7% according to the Office for National Statistics (ONS). This means overall prices are 8.7% higher now than they were 12 months ago.

But food inflation is much higher, at 19.1%. Although this has reduced slightly month-on-month from 19.2%, it still means we’re paying much higher prices for our food than a year ago. It is the fastest rate of price rises in 45 years, when in 1977 food inflation was 21.9%.

The ONS says the situation is serious enough that two in five (44%) of adults are spending less on groceries to save money, while half (50%) say they’re buying less in their regular shops to cut back.

Two thirds of Brits report their general cost-of-living increasing in the past month alone, while 97% have experienced food price increases.

Which food is worst affected?

The ONS has itemised data on price rises among a huge range of foods, goods and services. You can use their shopping prices comparison tool to dig deeper. 

Looking specifically at groceries, cucumbers top the list of biggest price increases, going up a staggering 54% in 12 months – costing 83p on average compared to 54p a year ago.

Also fast rising is sugar, going from 73p to £1.08 – a 47% rise, and olive oil, up from £4.07 to £5.95 over 12 months, a 46% rise.

At the opposite end, lemons are the only product not to experience price rises, remaining around 32p each on average. Meanwhile, a bottle of gin went up just 3% – from £15.51 to £15.95, while honey also rose 3% – £2.19 to £2.24 on average.

Ways to save on the food shop

It is very tricky to give one-size-fits-all tips for how a household can save money on groceries, as everyone’s needs will be different.

There are some small changes we can consider to save on our groceries though. Here are some ideas:

Cut the waste – one of the biggest contributors to overspending is how much we buy and then subsequently don’t use. According to a study from The EcoExperts, the UK wastes around 9.5 million tonnes of food every year. This is equivalent to £19 billion of food or around £284 per household per year.

The best way to cut waste food is to try and plan more carefully your weekly meals and only buy what you need instead of always “stocking up”. It’s also crucial to store food properly, including freezing (but not forgetting) stuff you won’t use straight away.

Batch cook – batch cooking is often cited as a way to cut costs, particularly by food influencers such as Jack Monroe or Suzanne Mulholland, the so-called “batch lady”. While reliable statistics on saving money via batch cooking are hard to come by, cooking in large quantities and storing it properly will be an effective way to cut waste – especially when buying bulky items such as potatoes or pasta that would otherwise sit unused in a cupboard.

Try meal kits – An alternative to grocery shopping if you feel you don’t shop efficiently, or maybe fall to temptations, is meal kit services. Companies such as HelloFresh and Gousto offer concise recipes and meal kits which give you precise amounts of ingredients so you never waste, potentially saving you money.

It also removes the need to be constantly vigilant of every product price. Just make sure you’re not leaving meals unused, and look around for voucher codes to save at the start.

Shopping around – the kind of tip your granny might swear by – make sure you’re visiting as big a range of supermarkets as possible, if you have the time for it. Supermarkets are relentlessly competitive on pricing so some items very competitively priced, while overpricing on others.

Alternative retailers such as Poundland, B&M, and even Amazon can also be great for some staples at cheaper prices, just be wary that sometimes things will be overpriced relatively too. The variation is enormous unfortunately and requires a keen eye and possibly some notetaking, but your wallet might just thank you.

Utilising retailer discounts through your employer – Some employers offer benefits to staff which include giving them access to discounts and cashback. You’ll usually be directed to a provider’s website that offers these deals, but what might be particularly helpful (and is becoming more common on these websites) are discounted gift cards.

The provider allows you to buy gift cards for shops including the likes of Sainsburys, Morisons and M&S for example, and when purchasing the gift card you could save anywhere from 2-15% of your gift card’s total value. So, you could buy and use the gift card for your usual food shop and get a discount on the money you were going to be spending anyway!

It’s worth checking if your employer offers access to these kinds of benefits and then deciding how best to use gift cards, discounts or cashback to your advantage.

Use loyalty wisely – Supermarket loyalty schemes have had something of a renaissance in the past year with the now famous “When it’s gone, it’s gone” from Lidl, Tesco Clubcard discounts, and now Sainsbury’s Nectar discounts too.

Like ‘shopping around’ above, it pays to be vigilant with these deals and ensure you’re actually getting the best price. But it also pays to be signed up to the schemes so when you do spot a good deal you’re able to take advantage straight away.

Photo Credits: Pexels

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From inheritance dependency during retirement to ‘worryingly high’ food prices and a cashless Britain economy – here are our favourite must-know money stories this week to help you get your head around your personal finances. 

A third need an inheritance to pay for retirement  

One in three (34%) of the people who expect to inherit say they need the money to fund their retirement, reveals data from a survey carried out for Hargreaves Lansdown by Opinium this month. 

The survey found that while 38% people either expect an inheritance or have already received one, only 29% of people plan to leave an inheritance – creating a gap that may leave many without their inheritance wishes being materialised.  

At the same time, several aspects such as expensive care, a potential new relationship, the rising cost-of-living, equity release on properties, or a later demise may devour or slow down an inheritance. 

Younger people were found to have higher expectations of inheritance, along with higher earners – 37% of higher rate taxpayers compared to 30% of basic rate taxpayers – owing to their better standard of living. Only 54% people completely ruled out needing an inheritance to fund retirement. 

Sarah Coles, head of personal finance, Hargreaves Landsdown said: “If you expect inheritance to play a part in your retirement plans, you cannot rely on it. You need to still be able to afford to retire if you get less than expected, it comes later than you initially thought, or you end up without one.” 

Food prices remain ‘worryingly high’  

Food prices continue to surge with food inflation at 19.1% in April, reports Daniel Thomas for BBC News. Inflation figures came down to 8.7% from 10.1% in March, but it doesn’t mean prices are coming down, just rising less quickly. 

The Chancellor Jeremy Hunt said food prices remained “worryingly high” and while the sharp fall is welcome, things underneath the numbers show that the battle is far from over.  

Inflation has dropped overall thanks to stabilising energy prices. However, prices of staples such as sugar (up 47.4%), eggs (37%), milk (33%), bread (18.6%), and fish (18.9%) continue to rise – just slightly less quickly! Imported food prices have fallen considerably, but are not yet reflected on supermarket shelves due to long-term contracts with food producers.  

Rachel Reeves, Labour’s shadow Chancellor said families would be worried with such high food and other essentials prices and asking: “why this Tory government still refuses to properly tackle this cost-of-living crisis, and why they won’t bring in a proper windfall tax on the enormous profits of oil and gas giants.” 

Cashless Britain: a disaster waiting to happen 

Britain is rapidly becoming a cashless society, but who really benefits from shunning notes and coins? Relentlessly marching towards digital payments doesn’t benefit the average consumer, writes Adam Williams in The Telegraph. 

The Bank of England says one in five people consider cash to be their preferred payment method on a daily. However, in a nation with car parks to cafes, and theatres to pubs switching to digital payments ‘only,’ and even some central London banks rejecting cash, several are left behind.  

While the elderly, disabled and those who struggle with technology are the obvious losers, business owners lose out due to sky-high card processing fees, and the rest of us lose our privacy and the right to choose how we pay he says.

Dilip Soman of the University of Toronto published research over twenty years ago warning that card usage encouraged customers to overspend. Beyond a personal finance issue, the decline of cash could quickly even become a national security issue if prone to a hostile banking system attack – essentially closing down our bank-dependent economy.  

Williams concluded: “The survival of cash is about more than what’s in your pocket – our civil liberties are at stake.” 

Photo Credits: Pexels

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