Cost of living crisis: How are people in London really feeling about the increase in prices?

By Annabel Sinclair

It’s the end of the month and a heap of bills has just been posted through the letter box. A sudden surge of panic drowns your body in financial fear as you ask yourself ‘How will I afford anything with bills this high?’ Many say they are “concerned”, “apprehensive”, and “stressed” when thinking about the major cost-of-living crisis that is taking charge over the nation. With totals at the till stealthily slipping up with each weekly food shop and energy prices reaching an all-time high, millions of people are forced to choose between eating and heating.

As we close the door on COVID-19 restrictions and reopen the economy, inflation has soared to a 30-year high of 5.5% in December and is set to rise further with a peak close to 7.25% in April. But what does that mean for us? It means that grocery prices will surge by 5%, adding an extra £180 onto the average household’s annual bill. It doesn’t stop there as the energy price cap is set to increase by 54%, throwing a further £639 per year onto our bills.

Whilst the data is alarming, it can be difficult to comprehend the magnitude of the impact that rising costs will have on our daily lives. Poverty campaigner Jack Monroe estimates in a viral tweet that the price of basic food products has shot up by 344% in year, leaving those who were just about getting by now unable to afford the necessities and in unbearable levels of economic hardship.

For Chef Loison, 40, who works for a small catering company in Northwest London, the rise in food prices have been particularly challenging. “Coffee and oil have increased a lot in the past year. The price I paid for an 18-kilo bag of coffee last year is the same price I’m paying for a 12-kilo bag of coffee this year and therefore I’m not making the profit I should be making,” he says. Due to the pandemic and rising prices, Chef Loison and his colleagues are struggling to find business as their usual customers have resorted to preparing their own food or opting for a cheaper deal elsewhere.

The soaring cost of food has also impacted lower-income households in London particularly hard, with people scraping together every last penny to feed their family. Data released by the Food Foundation charityshowed that in January 4.7m adults had experienced food insecurity, equivalent to 8.8% of the population.

To get through the month, Paul Antrobus, a 55-year-old administrator from Northwest London, has had to actively combat rising food expenditures. “We budget very carefully when it comes to food,” he says. “Normally we shop at Tesco’s, but we have started looking at other supermarkets to see if we can get a better deal. I’ve found that with food and toiletries, by shopping elsewhere we can save a few quid each month.” Paul’s main concern is that food prices will continue to rise, and he will start having to sacrifice items at the till.

What is fuelling this recent rise in the cost of living? Covid-19 hitting global supply chains, trade barriers following Brexit, an increase in the cost of shipping and a shortage of goods are all factors contributing to the UK’s high inflation rate, which is the rate at which prices increase over time.

According to the Office for National Statistics, of the 66% of adults in Britain who reported an increase in the cost of living in the past month, 79% cited that skyrocketing energy prices were to blame. The wholesale price of gas has quadrupled since 2021, causing concern among many who are on the verge of sinking into deep energy poverty.

Cheryl Yuen, 28, an educational consultant from Islington, is one of the millions of Londoners who have seen their energy bills escalate in recent months. “I’m always trying to find ways to save energy,” she says. “If it is not too cold, I won’t turn on the heater and I never turn on the lights until it is fully dark. I’m also trying to not cook food every day so I will cook a lot of portions at once, enough to last me four days.” Cheryl is determined to keep trying to reduce her energy bills and stabilize her finances by sacrificing luxuries, but the pressure to do so is overwhelming for her.

Giving up non-essentials to pay the bills may be painful for people like Cheryl, who enjoy treating themselves on a regular basis. According to a study of 2,000 adults, 55% have already attempted to offset growing expenses by suppressing indulgences or cutting down on non-essential spending, such as eating out, buying new clothes, and takeaways. “I’ve stopped hanging out with friends every day,” says Cheryl. “Going out for drinks and dining out can get expensive and with prices increasing, I just can’t afford to be extravagant right now.” For the time being, she’ll stick to socialising at home.

What can you do to protect your wallet from the cost-of-living crunch? Turning off the heating, shopping in budget-friendly supermarkets and cutting down on going out can all make a big difference when it comes to tackling the rising prices. Open your bills at the end of the month; finally float in financial confidence and beat the cost-of-living crisis this year.