Ways to Help With The Cost of Living Crisis

Oct 10, 2022

Even if you haven’t already felt it yourself, there’s a good chance that you’ve heard about the cost of living crisis happening in the UK right now.

We know that lots of people are starting to look at the rise in prices and the impact it could have on their finances. From the increase in the cost of filling your car up, to rising energy bills, mortgages and the price of everyday goods, many of us are worried about how to cope

But in reality, little has been done to give households the information and tools to prepare for what is to come. In a Bank of England survey in May 2022, only 51% of those surveyed thought that prices would rise by 4% or more in the next 12 months. Inflation is already currently running at 10% and shortly expected to rise as high as 13% according to the Bank of England – and as high as 18% next year according to Citi.

Some of the Reasons for The Price Increases

The War in Ukraine

 One of the reasons for the current instability in the energy market is the war in Ukraine. As a response to Russia’s invasion of Ukraine, many EU countries (including the UK) have placed a series of sanctions on Russia’s economic activities, this has led to countries having to source oil and gas from other places. Previous dependencies on Russian oil and gas means there is a lack of quick and viable alternatives to substitute in the short term.

In addition, pipelines that carry gas from Russia to key European countries such as Germany are running at a reduced capacity (5% of full capacity at the time of writing).

COVID-19 impacts

As the world went into lockdown this meant less energy and resource were required to power the likes of offices and factories. This resulted in many energy companies scaling down their operations during the height of the pandemic. However, as the lockdown eased there was significant demand for energy which in turn drove up prices within the energy market.

 The Weather

Weather conditions the world over have had impacts on the current supply of energy. The lack of wind here in the UK over the last year has meant lower than usual reserves of renewable energy generated by wind turbines. Whilst incredibly warm temperatures last year in the likes of China saw significant demand on oil and gas for the likes of air-conditioning.

Households across the UK are likely to see their utility bills increase from October due to the changes in the energy price cap. With the cap set to be reviewed again in January 2023, it’s difficult for customers to lock in low-cost fix rates. We understand the challenges this presents and unfortunately, student loans have not increased to balance the overall rising costs of living.

Interest Rates

Due to the rise in inflation the Bank of England’s has increased interest rates which will have a significant impact to those people with mortgages due to end and those that need renewing in the next 6 months.

Not All Doom and Gloom – The Real Living Wage

Full Circle has joined forces with over 11,000 other companies in the UK to ensure their staff are paid a real living wage. The Real Living Wage is not compulsory however it is a calculation on what people need to earn to get by everyday ensuring they have enough money for Food, Petrol, or a surprise trip to the dentist.

With the cost of living rising at a high-rate Full Circle thought this was an appropriate time to stand shoulder to shoulder with other companies who want to look after their staff and their staff wellbeing.

The Real Living Wage applies to those over 23 years old and they have put in the place across the 3 sectors they supply staff – Catering, Care and Education.  This is the minimum level that has been applied, however many of the job roles pay more than this.

Some companies may not agree with this move, and they purely stick with paying the National Minimum Wage (which is different to the Real Living Wage) however Full Circle belief that by doing this they will continue to retain and improve staff loyalty and staff well-being. 

Many employees on National Minimum Wage are stressed on a day-to-day basis worrying about how they are going to put petrol in their car to get to work for the rest of the week, or they have to work a ridiculous amount of hours week in and week out just to make ends meet, they worry if they can afford to feed their families, many never have time off as they never have any extra money for holidays or days out. 

Full Circle Catering, Care and Education believe that increasing the hourly earning rate will ease these burdens within their team and a less stressed workforce, which equals happier staff and happier clients. Investing in their employees and valuing their hard work it will provide positivity and reward that will be channelled through to their clients.

 If you are working in Healthcare/Catering/Education industry and earning the national minimum wage, then consider joining an Agency that specialises in these fields and offer higher hourly rates.

Full Circle Employment Agency pay the Real Living Wage and have vacancies in Education, Catering and Healthcare. We offer flexible shifts that can work around your week and it may be possible to split your tax code so that you can benefit from having 2 jobs.

Please contact 01623 404224 or email nadja@fullcirclecareagency.co.uk