Families in Stamford and Rutland continue to feel #BigSqueeze on finances
Our #BigSqueeze coverage will find out how families are coping in the region
Last updated 11th Apr 2022
The average household is expected to be around £1000 worse off this year due to rising costs of energy, fuel and food.
The Big Squeeze on finances is forcing people in Stamford and Rutland to make changes to the way they live - just to get by.
59 per cent of people in the East Midlands say they've already started spending less on non-essential items, according to the Office for National Statistics.
It comes as Citzens Advice report that they're receiving more calls from people in crisis now than they did at any point during the coronavirus pandemic.
Kayley Hignell, from the charity, said 50 thousand people have already asked for crisis support this year:
"Wages aren't keeping pace with costs, benefits are certainly not keeping up with them either. We're seeing people who are day in day out going 'how am I going to get out of this situation?', and not feeling like there is anything they can do."
The local impact
Liz Leaper runs Pollen Floristry, a family flower business in Oakham - she says she's been feeling the squeeze at home and at work:
"At home, we've turned off the heating already, I know that's ridiculous and we probably could afford it but it's so high and so noticeable the difference, that you start to make cuts where you can."
But the Leaper's collectively share their concerns for the grandad of the family, who's often having to to turn off the heating in all rooms but one - they even bought him a portable radiator and thermals last Christmas.
Liz says she's worried for some of her staff:
"One of my staff is off on maternity pay and I think she'll really struggle because the maternity pay isn't your full wage. Then your heating bills, your food bills are going up and your wages literally come down - it's very difficult for people like her."
Anne, Liz's delivery driver, is struggling to find the finances to get away on holiday:
"I would say I am looking fairly closely at the amount I would pay for a holiday. I was looking at shepherd's huts, because I've always fancied a week in a shepherds hut. You could of got one of those for about £70-80 a night before all of this happened. I was looking at them last night... £110, £120, £130, £140... I don't know whether I could justify that sort of money for a short holiday."
But it's not all bad news for the Leaper family, who are embracing the challenge where they can. Liz's husband has been forced to shop at cheaper supermarkets, which has been a pleasant surprise:
"The noticeable thing is that my husband has started shopping at different supermarkets, instead of like the big branded supermarkets that you get in every town, he's trying less expensive ones and actually finding the quality quite good, so that's been a bonus really."
Merren Leaper, Liz's son, is also finding new ways around higher prices: "I'll just have to cook big batches, I like cooking so I can just make it work cheaper, sort of do big batches and freeze it."
A living cost crisis
Last week the energy price cap lifted leaving the average household's likely to pay up to £693 more on energy bills per year.
It follows food cost inflation and unprecedented highs in the price of petrol and diesel, forcing some families in Stamford and Rutland to make compromises.
The energy bill rise is due to regulator Ofgem increasing the price cap on standard and default tariffs by 54%, meaning the price cap will go from £1,277/year to £1,971/year.
Nine in ten people in the East Midlands have also reported seeing the cost of their weekly shop go up.
But, if you pay council tax on a house in Band A to D, you'll get a 150 pounds refund to part-cover the rising costs.
And there will be a 200 pound deduction on this year's energy bill, which you'll have to pay back over five years from 2023.
It's among a number of plans put in place by the Government to mitigate the impact of the living cost crisis, including a raise in the national insurance tax threshold.
Anne, Liz's delivery driver, was made redundant recently, and has to work three jobs to make ends meet:
"It's had a real affect on how I use the energy at home, using gas a lot less, really measuring the water that goes in the kettle. You know all the little things? Last month it (energy bills) was something like £70, and I didn't have the heating on either."
Support
The government have announced some support to help those affected by the big squeeze.
If you pay council tax on a house in Bands A to D, you'll get a £150 refund to part-cover the rising costs,
There'll also be a £200 pound deduction on your energy bill this year - crucially, though, you'll have to that pay back over the following five years.
However, families like the Nickless' say this isn't enough.
Colin would like to see the government do more: "If you want to look after the people in your country, you have to increase wages at some point.
"Inflation is going to keep going up, the cost of living is going to keep going up, and if you don't, we'll get to the point where people just can't afford to live."
If you're struggling with the big squeeze, click here for advice.
Why does everything cost so much?
The government say global supply chains, and the uncertainty cause by war in Ukraine is responsible for the cost of living increase.
Inflation is the measure by which we record how much prices are rising across the UK.
At the moment, it's just over 6%, so something that cost £1 last year will now cost £1.06.
It's thought it could hit close to 9% later this year.
Energy prices
The cost of energy is skyrocketing because of increased demand since economies opened up after months or years of coronavirus restrictions.
Most of our homes are gas-powered through central heating, and a large part of our electricity comes from gas too.
The price cap, which was designed to stop companies charging too much, is now setting the minimum amount you can pay, after looking at national and global supply factors.
Earlier this year, Ofgem decided 54% was a fair increase for energy companies to charge, pushing bills up to around £2000 per household.
It's thought it could go up to closer to £2500 a year if prices on the wholesale market continue to rise.
Petrol and diesel
Demand for petrol and diesel has done the same to prices at the pumps, which saw record amounts charged at filling stations throughout March.
Unleaded now regularly costs more than £1.60 a litre, and its more than £1.70 for diesel.
Wholesale prices are rising, as people return to workplaces after months or years of working from home, and demand for items in shops and online means fuel is in massive demand.
That means higher prices too.
Grocery shopping
The route items take to get to our supermarket shelves has also been disrupted by coronavirus, and new rules and red tape introduced because of Brexit.
That's pushed up prices too.
At the moment, prices are increasing by more than 5% on last year, which could hit as high as 8% later this month.
National insurance
The government announced last year they were pushing up the National Insurance rate to pay for social care.
For most people it comes directly out of your wages, just like tax.
A 1.25 percentage-point rise introduced by Chancellor Rishi Sunak will mean someone earning £20,000 per year will take home £89 less compared to last year, but a change to thresholds announced in the Spring Statement now means a typical employee will take home an extra £330.
Pay rises that don't match inflation
At any other time, we'd be celebrating the highest pay rises in a decade, with some staff seeing a 3% rise in their salaries this year.
But given inflation is currently higher than 5%, it actually means you're actually worse off, as your new pay amount won't match the increase in the things we want or need to buy.