“The cost of living crisis and lack of good employment are two sides of the same coin. When wages don’t keep up with costs, people get stuck in a cycle of struggling to make ends meet.” -Elizabeth Warren – Senator
The cost of living crisis is a real and pressing issue for millions of people in the UK. There are many causes and consequences of the cost of living crisis, which local authorities and policy makers need to urgently address. With the latest rounds of austerity local authorities are struggling to provide support to those who need it the most; meaningful employability support is becoming more and more difficult, and skills are becoming less and less valued. In this blog post, we will discuss 5 causes and consequences of the cost of living crisis.
1. Low wages:
Low wages are one of the main causes of the cost of living crisis. Inflation has steadily been increasing while wages have stagnated, leaving people unable to keep up with rising costs. Until inflation is under control individuals will be forced to look for better paid employment.
2. Rising housing prices:
Another cause of the cost of living crisis is the rapid rise in house prices across the UK. This has made it increasingly difficult for people to enter into home ownership or secure a safe and affordable rental property.
3. Lack of local authority support:
Local authorities are often overstretched when it comes to providing support for those experiencing financial hardship due to the cost of living crisis. There is a lack of meaningful employability support, and local services such as benefits advice are becoming increasingly difficult to access.
4. Lack of skills development:
People are finding it more and more difficult to upgrade their skills in order to increase their employability, due to the lack of local authority support and financial hardship caused by the cost of living crisis. This is preventing people from gaining the skills they need to improve their employability and secure better paid employment.
5. Mental health problems:
The cost of living crisis is having a significant negative impact on mental health across society, with people feeling isolated, anxious and stressed about money worries.
The cost of living crisis has serious economic implications too; businesses are unable to attract or retain quality staff because they cannot afford to pay them a livable wage and local authorities find themselves unable to provide meaningful support for those in need. In short, the cost of living crisis requires urgent attention from local authorities, policy makers and individuals alike in order to create a more equitable society.
The cost of living crisis affects all parts of society, but there are steps we can take to address the problem. Local authorities must invest in meaningful employability support and skills development so that people have access to the resources they need to secure good jobs and afford rising costs. Governments must also take action to ensure wages keep pace with inflation and introduce measures such as rent caps or schemes which help first-time buyers into home ownership. Most importantly, local communities must come together to raise awareness of the causes and consequences of this crisis, lobby local governments for change, and provide support for those experiencing financial hardship due to these issues. By doing so, we can all work together to tackle this growing problem.
So what can you do about it? The answer is not simple, but one place to start is by looking in your own area. What are the costs of living in your town or city? How does this impact the ability of local authorities to provide services and support to their residents? And finally, what can be done to make sure that people have access to good jobs in the area? We’ve put together a free toolkit with all the resources you need to get started and ability for you to share Skillzminer with your residents. Sign up today and let us help you make your community a better place for everyone.