The Cost of Living Crisis

Building the Fight Back

Abstract

The cost-of-living crisis is having a profound effect on working people, raising key questions about the operation of the free market and its ability to meet the needs of the majority in society. Households are reeling from the huge increases in energy and food costs. In June 2022, the children’s charity Barnardos reported that families are having to make hard choices between eating, lighting, and heating, and that many were cutting back on food purchases: ‘70 percent of parents said that cost of living increases have negatively affected their children over the past six months.’ With energy prices rising, energy poverty is at all-time high, affecting 29 percent of households. If current trends in energy costs continue, this could rise to 43 percent, almost double its previously recorded high of 23 percent in 1994/95. Some projections suggest it could be as high as 70 percent. In general terms, it is estimated that many households will be €4000 worse off by the end of the year due to rising prices. Some will see their energy bills increase to €6000 per year from under €2000 in 2021.