Rising poverty in Britain: 'We hardly eat meat anymore, it's too expensive'

Poorer citizens turn off the heating, only go to the discounter, some even forego meals altogether in order to save: The rapidly rising prices are a drastic burden for millions of British consumers.

"Our energy bills were shockingly high, food has gotten crazy expensive," complains Monika, a Polish woman who works as a domestic help in south London.

"All my acquaintances only talk about the increased prices," she says.

Her income is no longer sufficient, now she also works on Saturdays.

Friends think about how to save.

“Some turn off electrical devices to save electricity.

We hardly eat meat anymore, it's too expensive," says Monika.

And instead of using the car of her husband, a construction worker, she only drives the scooter.

Philip Pickert

Business correspondent based in London.

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In a television interview this week, Prime Minister Boris Johnson was confronted with the case of 77-year-old Elsie, who now uses her free ticket to ride the bus for days: it is nice and warm, but she can no longer heat her home.

Johnson expressed understanding for the concerns of the population.

However, he did not promise more social benefits at taxpayer expense.

The best protection is a strong economy with higher wages.

After all, unemployment is very low and there is almost full employment.

Multiple price shock

Many households are still at the limit.

"Very high inflation, which will rise to about 9 percent in the spring, will push up to 1.3 million more people, including 500,000 children, below the poverty line this fiscal year," said Jack Leslie, economist at the Resolution Foundation Think tank that works for the socially disadvantaged.

The Resolution Foundation puts the poverty line for a couple without children at £14,000 (€16,800) in annual disposable income – after housing costs have been deducted.

In northern England in particular, there are many low-income households.

During the Corona period, poverty in Great Britain had fallen because the government paid more welfare.

The increased welfare (Universal Credit) of £20 a week, a good £1,000 a year, expired again in autumn 2021.

In April, households were hit by multiple price shocks.

The sharpest rise has been in government-regulated energy bills.

For an average household, the ceiling has increased by almost £700 to almost £2,000 a year.

In addition, there are rising social security contributions, which burden employee income and employer contributions by 1.25 percent each.

Wages and salaries on the island are rising, most recently including allowances by around 5 percent.

But inflation eats up everything and causes painful real wage losses.

Food prices have increased by almost 6 percent on average.

In addition to gas and petrol, the Ukraine war has made agricultural products in particular more expensive.

"A large pack of chicken breasts in our supermarket is 25 per cent more expensive, it's now £12.50.

We almost only buy vegetables now,” says cleaning lady Monika.

According to market research institute Kantar, the average household now pays £271 more per year for groceries.

Many consumers are turning to discount stores, says Kantar's Fraser McKevitt, because they "have to count every penny."

The central bank is likely to tighten monetary policy this Thursday and raise the key interest rate by 0.25 points to 1 percent in order to curb inflation.

But you can already see that the increased prices are slowing down the economy.

Outspoken Chancellor of the Exchequer Sunak

Finance Minister Rishi Sunak has fallen in public popularity, he is now seen as the aloof Chancellor of the Exchequer of the tax hike.

Unions, social organizations and the Labor opposition are calling for more help.

Sunak has given 28 million households a £200 rebate on energy bills, which they will have to pay back in installments over the next five years.

Poorer households will receive an additional £150 subsidy towards gas and electricity bills.

In addition, Sunak has increased social security contributions so that millions of low-income earners pay less.

From the point of view of the social organizations and trade unions, this is not enough.

"The longer Rishi Sunak delays taking action, the more people are being driven to the food banks and in need," said Frances O'Grady, general secretary of the TUC.

She refers to the rush to the Tafel (food banks) with their discounted or free groceries.

2.1 million food parcels

The 1,400 food banks operated by the Trussell Trust are stacked to the ceiling with boxes of canned goods, rice, pasta and cereal.

The demand is increasing.

In the 12 months to April, the Trust dropped 2.1 million food packages, up 14 percent from a year earlier.

Trussell director Emma Review tells bad stories.

"We hear from people who skip meals themselves so that they can give their children something to eat," says the head of the Tafel association.

“How can that be right in a society like ours?” She demands that social security benefits increase by at least 7 percent to keep up with the cost of living.

Johnson has called on all cabinet members to look for ways in their departments and areas to lower costs for citizens.

In the autumn budget at the latest, Sunak will probably not be able to avoid further relief measures, because it is feared that the energy bills could then rise by another 700 pounds.