So you know how everyone’s been going on about this “cost of living crisis” thing? Let me break it down for you like we’re just chatting on WhatsApp 👇
Tanvir: Hey guys, anyone else noticing how everything’s gotten stupid expensive lately? 💸
You: OMG YES! I spent £7 on a pint last weekend. SEVEN POUNDS. Make it make sense.
Tanvir: That’s exactly what I’m talking about! It’s not just pints though – it’s literally EVERYTHING.
What’s actually happening?
Basically, prices are rising WAY faster than people’s wages. That fancy term economists like me use is “inflation outpacing wage growth” but it just means everything costs more while we’re not making more money. Double whammy.
UK inflation hit over 11% in 2022 (the highest in 40 years!) and while it’s come down since then, prices haven’t. They’re just rising more slowly now, but they’re still higher than they were.
You: But WHY though? I need someone to blame 😤
Tanvir: Several things tbh:
🌍 Energy prices went wild – Russia’s invasion of Ukraine sent gas and oil prices through the roof. Your parents’ energy bills probably doubled.
🦠 COVID aftermath – Remember all those supply chains that got messed up? Companies are still catching up, and now they’re passing costs onto us.
💵 Money printer went brrr – Governments spent loads during the pandemic (rightfully so to keep people afloat), but flooding the economy with money without enough goods = prices go up.
🇬🇧 Brexit tax – Extra paperwork and barriers to trade = higher costs for businesses = higher prices for us. (Don’t @ me, just economic reality)
Who’s getting hit the hardest?
You: Is it just me or does it feel like we’re getting absolutely rinsed as students?
Tanvir: We definitely are, but actually low-income households have it even worse. When you spend most of your money on essentials (food, energy, rent), and those are the things rising fastest, you’re proper screwed.
Students are in a tough spot too though. Our maintenance loans aren’t keeping up with rent increases. I’m literally paying 40% more for my room than students did 3 years ago in the SAME BUILDING.
What can we actually do about it?
You: Are we just supposed to eat beans on toast forever then?
Tanvir: As an Economics student, I should probably tell you to make a detailed budget, cut all non-essentials, and pick up more tutoring hours…
But realistically:
- Use your student status for everything – Discounts, freebies, student deals. Milk it.
- House-sharing is your friend – Splitting bills with mates is the only way rent is survivable.
- Cook with flatmates – Batch cooking saves serious money.
- Check if you qualify for any support – Many students don’t claim hardship funds they’re eligible for.
And honestly? It’s also OK to acknowledge this is properly hard. We’re living through the biggest squeeze on living standards since records began. It’s not just a skill issue™️
The bigger picture
As someone who studies economics, I can tell you the most frustrating part is that this didn’t have to be this bad. Better energy policy, smoother Brexit transition, more housebuilding years ago – all would have reduced the impact.
The real solution isn’t just individual actions like budgeting better (though that helps). We need policy changes:
- More affordable housing
- Energy security that doesn’t rely on volatile global markets
- Wage growth that actually keeps up with inflation
- Student maintenance support that reflects actual living costs
Until then, we’re all just trying to make it through. If your group chat is full of people saying “I can’t afford to go out this weekend,” just know you’re not alone.
Anyone got Netflix I can borrow? My subscription just went up again. 😅
