How The Other Half Lives

Two news stories have been circulating in the past week which show the huge differences between people in this country, and their attitude to the economy. 
Jack Monroe, outspoken defender of the poor had a go at the Office for National Statistics about the way they measure inflation. They have a "typical" shopping basket showing what the man on the Clapham Omnibus might be buying.[or whatever the 2022 equivalent of that 1932 term is]
For example, why should this basket include theatre tickets and fancy wines? she asked. Poor people do not buy them. There should be a different way of measuring for those with lower incomes. 

The Vimes Boots Poverty Index, is based on a theory in the Terry Pratchett books. Simplified, a rich man will pay $50 for a good pair of leather boots, which will last him 10 years. A poor man can only afford a $10 pair with cardboard soles which will leak within the year, so he has to buy another pair. After 10 years, rich man has spent $50 and still has his boots- the poor man has spent £100 and still has wet feet. "Buy once and buy well" is a great principle, but it is dependent on having the money upfront to pay.

Jack complained that many supermarkets have a 'value' range - where staples [rice, pasta, beans, canned tomatoes etc] are all sold in simple packaging at a rock bottom price. But she has monitored these for a decade or more- and all the major supermarkets have cut the number of products in their ranges, and many do not sell the entire range across their stores. Furthermore, some have upped the size and price of a packet - so the 45p bag of rice has gone, and the cheapest equivalent is £1.20. 

Well done, the ONS, for taking her idea about the VBPI on board, and agreeing to recalculate a simpler, more relevant basket alongside the original.

And well done Asda for agreeing to change their value ranges. Currently there are 150 SmartPrice/FarmStores items in 300 of their stores. But as from 1st March, there will be all 200 items available in all 600 Asda stores.  I hope the other major supermarkets follow their lead. 

Jack understands what it is to live below the breadline - and is totally committed to helping those who continue to struggle. 

Meanwhile craft guru and TV presenter Kirstie Allsopp has been explaining how we can all get on the property ladder. After all, she managed it - she walked to work, only had pizza once a month, and had a sandwich for lunch*. If only people were willing to make sacrifices- give up Netflix, their gym membership, holidays abroad , and fancy coffees each day - and if only they would move to a part of the country where property is cheaper, why then, they too could afford a house of their own. [*the Right Hon Kirstie also had money from Daddy, who is Baron Hindlip, former chairman of Christies Auction house]

How out of touch is that? 30 years ago, the average house cost £51K-  adjusted for inflated, that's £112K in today's money - but the average equivalent house now costs £256K. She honestly has no idea. Yes, you can buy a property in Newcastle or Worksop for £60K - but it will probably be a small fixer-upper. And if your job is down south, and your family too [after all, you need Mum to help with childcare while you are out earning] then it just isn't feasible. 

Many of the young people currently dreaming of owning a house do not have gym membership, or Netflix subscriptions, or a daily Pret cappuccino. If they have a job, it may be low paid retail work, or zero-hours contract, or if they are on the bottom rung of the 'professional' ladder, they are paying back student loans. And they don't have rich daddies to bail them out. 

It is not right to judge them or imply they are managing their money wrongly. Look at this chart from the Trussell Trust, which began twenty years ago. This chart goes up to 2017 - since the pandemic it has got much worse.

And as for this iniquitous £200 "loan" on our energy bills, don't get me started...[Martin Lewis explains it here] As Peggy Lee used to sing

There's nothin' surer, the rich get rich, and the poor get poorer....
And in my book, that is plain wrong. May God bless Jack Monroe, and Martin Lewis, and all those who are working to correct these inequalities.