By Giulia Zanatta
In the past few months we have been hit by a “post-pandemic wave” – exacerbated by the war in Ukraine – and the entire UK has been affected by the skyrocketing price of basic items, such as food, domestic bills, water, rent and transport.
There are specific locations in London where the price of housing, rent, and food items are significantly higher than others, such as Camden Town, Holloway, and Hackney, according to a Right Move 2022 Survey. It said that house prices in those areas are averaging more than £968,000 in those areas, followed by Kensington and Chelsea.
Based on UK Parliament figures, the cost of living in London has increased overall since just last year, with inflation reaching the highest level in years – and still rising. In April 2022, the Consumer Prices Index (CPI) was 9% higher than in 2021, and the growth of prices for consumer goods has been one of the major factors creating an unstable situation.
Price hikes are making Londoners’ lives difficult, based on London DataStore major Assembly, with an estimated 90 percent of university students facing specific difficulties and obstacles. Most students pay very high accommodation fees, which is made even more difficult by the increased cost of food and personal care items.
As a result, students are thinking deeper about their journey to university, and revaluating their choices about attending university in the first place.
“From now I’ve seen the increase and changes in terms of money for my rent and bills. It’s really difficult for me to cover every single cost and at the end of the month, there is nothing left in my pocket,” said Thomas Menson, 22, a university student living in Hackney.
“It’s really hard to save some money at the moment.”
Young people discouraged from moving out
Amanda Spielman, OFSTED’S chief inspector said: “The current economic situation and the threat of high inflation can discourage young people from moving out and remain at home or limit, in any case, the activity in order to save more money in order to pay the fees. This is not healthy.”
The rising cost of energy prices, resulting in an increase in household energy tariffs and petrol, is also affecting Londoners. The price of domestic gas has risen by 95%, and electricity prices have increased by 45% after the pandemic, when the demand from citizens also increased, as life got back to normal after the pandemic and people started to rejoin the city.
In addition, the war in Ukraine means that energy prices for gas and oil and soon increase by 30 – 50 percent in the next few months, according to the Office for National Statistics.
It said that 87% of adults in the UK reported increases in their costs of living in 2022. And according to the Office for Budget Responsibility, household incomes after tax and adjusted for inflation will start falling in 2022 and not recover until 2024.
The Bank of England has said that there are not many actions it can take to contain inflation. The only action they could decide to take is to work on the Bank Rate (the UK’s single most important interest rate), affecting all other interest rates in United Kingdom.
All of these changes are making people think more deeply about their future, in case of financial insecurity, with young people and students the most affected.
The problem is compounded with the fact that many students have more than one debt with the government, including university and maintenance fees. “We are living in a precariat life having a precariat part-time job,” said Lyuana Partyka, 23.
Twenty-five-year-old photographer Luca Vedolin said: “Since I moved to London a couple of years ago I’ve never struggled so much to save some money for the future and plan some trips in different locations. What I earned from my current job is invested in my rent, travel card, utility bills, and some grocery items.
“It’s really sad because all of these problems means that it’s taking from us some liberties, like the free choice to buy what we want when we want.”
Affecting mental health
Spiralling prices are also affecting the mental health of young people, which is why the HACKNEY QUEST launched a new project in 2022 which aims to help young people and families to survive inflation and rising costs.
The new portal, run by specialists and psychologists, hopes to help young people develop new skills in order to reach their potential, along with providing mental and physical support.
Another initiative is the Hackney Foodbank. This charity is focused on collecting as many food items as possible, with the purpose to help as many people as possible who are struggling with living costs.
Lily Wellesey, a 22-year-old university student, said: “I think for young people nowadays it’s quite shameful going into a food bank. For me there is nothing wrong, I’m not using this kind of resource, but I think that many families can survive thanks to these initiatives and I’m proud to help with this great cause.”
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