The Cost Of Living Crisis

[keelansgrandad 6,679]

1 hour ago, littleyellowbirdie said:

Sort of, but what I was getting at is that the UK always has demand for housing that outstrips supply, which tends to push prices up, but typically that's limited by how much people can afford. The growth of income multipliers is ultimately the biggest part of house prices rising.

Trouble is, if income multipliers hadn't gone up, it'd just mean lower prices with a  greater opportunity for cash buyers for buy to let. Maybe larger income multipliers should be reserved for first-time buyers, perhaps.

What were the income multipliers in the 80s? About three times as a top whack?

Mine was two times in 1980 but as a printer, my income was more than enough to cover the mortgage and live a life that included holidays, good christmases and a well stocked fridge every day. That was an endowment mortgage which are athing of the past now.

Of course, 45 years ago, there were mutuals and building societies. Now its the banks.

[Creative Midfielder 2,003]

53 minutes ago, keelansgrandad said:

Mine was two times in 1980 but as a printer, my income was more than enough to cover the mortgage and live a life that included holidays, good christmases and a well stocked fridge every day. That was an endowment mortgage which are athing of the past now.

Of course, 45 years ago, there were mutuals and building societies. Now its the banks.

Exactly so, banks taking over large chunks of the mortgage market has been bad news for everyone - well, except for the banks themselves of course who have essentially brought the rip-off Britain culture, so pervasive elsewhere, into the housing market.

[keelansgrandad 6,679]

Just had the Water Minister visiting the area today. Several questions conveniently avoided that meant she was absolving her Government and South West Water from any of the current and ongoing problems. She said we had a dry May. We had the wettest March on record! The main reservoir for Cornwall is 66% full and the one nearest me is 93% full.

What is it with this lot? We have had a hosepipe ban since August 2022. No reduction in our bill though. I am not on a meter. 

Why in this world are we spending well over £100BN on HS2 yet nothing on ensuring one of the staples of our life, water, is freely and abundantly available to all? 

[ricardo 7,402]

Unit energy prices drop today for both gas and electricity but standing  charge increases. Forty three pence a day for electric and twentynine pence a day for gas.

So 250 quid a year even if you dont  use any.

[Herman 9,837]

14 minutes ago, ricardo said:

Unit energy prices drop today for both gas and electricity but standing  charge increases. Forty three pence a day for electric and twentynine pence a day for gas.

So 250 quid a year even if you dont  use any.

I think we are basically paying for all the energy companies that failed.🤨Privatise the profit, nationalise the debt.

[FenwayFrank 2,469]

26 minutes ago, ricardo said:

Unit energy prices drop today for both gas and electricity but standing  charge increases. Forty three pence a day for electric and twentynine pence a day for gas.

So 250 quid a year even if you dont  use any.

My standing charge hasn't changed, 42 and 27p 

[Creative Midfielder 2,003]

1 minute ago, Herman said:

I think we are basically paying for all the energy companies that failed.🤨Privatise the profit, nationalise the debt.

That is exactly right, another huge failure of both the regulators and the Government for which as usual we pick up the tab.

I think that ultimately thr reason why all our public utilities will ultimately return to public ownership is not just that the private companies have proved time and time again that they are incapable of running our utilities efficiently and for the public good but that the regulators who are supposed to ensure this happens have failed just as badly.

Ofgem always have been, and continue to be, absolutely useless and in hock to the big energy companies they are supposed to regulate. They and our utterly useless government are also the major reason why our take up of cheap renewable energy has been so appallingly slow over the last decade leading pretty directly to the absurdly high prices and insecurity of supply that we've been seeing for quite some time now, i.e. pre Ukraine - this is a home made crisis which has been brewing for years, Ukraine just made it worse for a few months.

 

[Herman 9,837]

29 minutes ago, Creative Midfielder said:

That is exactly right, another huge failure of both the regulators and the Government for which as usual we pick up the tab.

I think that ultimately thr reason why all our public utilities will ultimately return to public ownership is not just that the private companies have proved time and time again that they are incapable of running our utilities efficiently and for the public good but that the regulators who are supposed to ensure this happens have failed just as badly.

Ofgem always have been, and continue to be, absolutely useless and in hock to the big energy companies they are supposed to regulate. They and our utterly useless government are also the major reason why our take up of cheap renewable energy has been so appallingly slow over the last decade leading pretty directly to the absurdly high prices and insecurity of supply that we've been seeing for quite some time now, i.e. pre Ukraine - this is a home made crisis which has been brewing for years, Ukraine just made it worse for a few months.

 

Talking of regulators.👀🤨

https://www.theguardian.com/environment/2023/jul/01/exclusive-uk-water-giants-recruit-top-staff-from-regulator-ofwat

[ricardo 7,402]

1 hour ago, FenwayFrank said:

My standing charge hasn't changed, 42 and 27p 

My previous daily charges were 38.93 and  28.48  (Scottish Power)

[dylanisabaddog 5,014]

11 hours ago, ricardo said:

Unit energy prices drop today for both gas and electricity but standing  charge increases. Forty three pence a day for electric and twentynine pence a day for gas.

So 250 quid a year even if you dont  use any.

As @Hermanhas said above, that money (or a sizeable proportion of it) goes into a fund to deal with failing suppliers. Martin Lewis is trying to do something about this as it clearly penalises low users. I think it also supports a green energy fund which is £170 per household. Last year that was paid by the Government but it has now been switched to consumers at a cost of £14 per month per household.

If this doesn't convince people that the system doesn't work then nothing will. If Tesco told you they had added £8 to your weekly shop in case Asda goes bust or to pay for their green policy you wouldn't be happy. 

We have a similar problem with water where our bills vary significantly depending on when our house was built. Imagine if a loaf of bread costs £1.50 but you get a reduction of 50p if your house was built before 1980. 

Edited July 2, 2023 by dylanisabaddog

[KiwiScot 1,489]

Current/Savings accounts interest. Decided to have a look and some rates have gone up so you find a decent rate, but across the board no. However what is still around are those accounts with say 5% up to £2,500 then nothing afterwards essentially giving you nothing for any money you might have.

[keelansgrandad 6,679]

1 hour ago, KiwiScot said:

Current/Savings accounts interest. Decided to have a look and some rates have gone up so you find a decent rate, but across the board no. However what is still around are those accounts with say 5% up to £2,500 then nothing afterwards essentially giving you nothing for any money you might have.

Lloyds offering up to 5% on new ISAs. Bet they won't alter the % on my old ones.

But there again, I am not bothered about interest in the hope they won't charge exhorbitant rates to my children and grandchildren who have mortgages.

But I forgot that Banks are just greedy bustards.

[keelansgrandad 6,679]

Funny how normally we are told to believe in the Market. It will decide. It will provide.

Apart from when supermarkets sense a loss of profit. They now tell us they ripped us off for 6p a litre because the demand wasn't strong enough and needed to protect their margins.

Wonder if Sunak will give them a stiff talking to and maybe even not smile?

 

Edited July 4, 2023 by keelansgrandad

[Barbe bleu 833]

3 hours ago, keelansgrandad said:

Lloyds offering up to 5% on new ISAs. Bet they won't alter the % on my old ones.

But there again, I am not bothered about interest in the hope they won't charge exhorbitant rates to my children and grandchildren who have mortgages.

But I forgot that Banks are just greedy bustards.

Why not transfer the balance of the old isa into one at the new rate. I'm sure that's possible.

If you want a slightly higher rate, Lloyds have a 6.25% regualar saver account  available. There clare conditions amd limitations but seems to be about the best you'll get.

 

[keelansgrandad 6,679]

12 minutes ago, Barbe bleu said:

Why not transfer the balance of the old isa into one at the new rate. I'm sure that's possible.

If you want a slightly higher rate, Lloyds have a 6.25% regualar saver account  available. There clare conditions amd limitations but seems to be about the best you'll get.

 

I didn't realise I could transfer an ISA. I was thinking of withdrawing the money and buying Premium Bonds.

[KiwiScot 1,489]

1 minute ago, keelansgrandad said:

I didn't realise I could transfer an ISA. I was thinking of withdrawing the money and buying Premium Bonds.

I'm pretty sure(don't quote me) you can have more than one ISA as well it's just the amount you can put into them Total per year that is limited.

[ricardo 7,402]

1 hour ago, keelansgrandad said:

I didn't realise I could transfer an ISA. I was thinking of withdrawing the money and buying Premium Bonds.

I transfer mine every year or renew it at the new rate if ok. People who leave it in a some ludirous minimal rate are just bumping up the banks profit. 

[KiwiScot 1,489]

On 04/07/2023 at 16:43, ricardo said:

I transfer mine every year or renew it at the new rate if ok. People who leave it in a some ludirous minimal rate are just bumping up the banks profit. 

if they have a term length like 5 years can you still transfer them?

[Herman 9,837]

On 04/07/2023 at 14:16, KiwiScot said:

I'm pretty sure(don't quote me) you can have more than one ISA as well it's just the amount you can put into them Total per year that is limited.

Aye, 20k a year limit. 

[Herman 9,837]

6.66%. The number of the beastly mortgage. 

[Nuff Said 5,178]

On 04/07/2023 at 14:14, keelansgrandad said:

I didn't realise I could transfer an ISA. I was thinking of withdrawing the money and buying Premium Bonds.

Make sure you transfer, not close the old one and open a new one. Otherwise you lose the previous tax free allowance and use up this year’s.

[keelansgrandad 6,679]

7 minutes ago, Nuff Said said:

Make sure you transfer, not close the old one and open a new one. Otherwise you lose the previous tax free allowance and use up this year’s.

Thanks.

[keelansgrandad 6,679]

23 minutes ago, Herman said:

6.66%. The number of the beastly mortgage. 

Mine was 15% in 1980 but only on £10K.

6.6% on what would be a £280K mortgage today is absolutely mind boggling cruel and greedy and fcukin down right immoral.

We are talking about homes not currency.

[KiwiScot 1,489]

Was reading an article saying food inflation has peaked and was like "yeah right." Then read an article that today wheat prices jumped up in price now Russia is saying any ship in the black sea sailing to/from Ukraine is a target. Hurray.

[Pyro Pete 1,924]

 

[dylanisabaddog 5,014]

On 11/07/2023 at 15:32, keelansgrandad said:

Mine was 15% in 1980 but only on £10K.

6.6% on what would be a £280K mortgage today is absolutely mind boggling cruel and greedy and fcukin down right immoral.

We are talking about homes not currency.

Yes, I paid 15% but my flat cost £23k and I earned around £19k the same as you. I didn't have a care in the world. Getting a bit fed up with people my age telling youngsters they should be grateful. 

[Canary Wundaboy 1,360]

I am now into week 2 of electric car ownership, combined with our solar panels and 6kW battery our electricity usage is down to around £1 usage per day (without any sun) to run both the house and our daily transport to/from nursery/gym. We're also getting paid a higher rate for the electricity we put back into the grid so we're running a few hundred quid in credit. 

All of that saving has been offset by the weekly shop which keeps increasing, and of course the £700 increase in our monthly mortgage payments which kicked in from January. Still, could be worse.

[Pyro Pete 1,924]

BBC News - British Gas: Anger as energy bill change leads to record £969m profits

https://www.bbc.co.uk/news/business-66315117

[keelansgrandad 6,679]

1 hour ago, Pyro Pete said:

BBC News - British Gas: Anger as energy bill change leads to record £969m profits

https://www.bbc.co.uk/news/business-66315117

I found the excuse that the tariffs were raised to help the smaller companies succeed after several went to the wall as undefendable. I am pretty certain the bigger comapnies couldn't care lesswhat happens to these other companies. Less competition, bigger piece of the pie.

I am waiting to hear what the usual supsects will make of it.

Sunak=margins are small per household. 

SKS=we have a plan to stop large profits.

[KiwiScot 1,489]

Watch Out. Next stage of the great water rip off.

https://www.theguardian.com/environment/2023/oct/15/water-metering-should-be-compulsory-in-england-advisers-likely-to-say