‘I’m on benefits – my sister works – but we’re both struggling’ | Personal Finance | Finance
The rising cost of living is affecting households across the UK, prompting Chancellor Rachel Reeves to create a new cost of living strategy which could cut the costs of essentials alongside other measures.
Nicola and Karen live just three miles apart from each other in Greater Manchester, but Nicola receives around £2,300 in benefits monthly while Karen works 22 hours a week. Yet both sisters are finding it more and more difficult to stay afloat.
Nicola was employed and financially independent before a workplace injury changed her life. Shortly after the accident, Nicola required surgery and struggled to access certain benefits which left her falling behind on urgent bills. At one point, bailiffs and debt collection agents arrived at her home threatening to start seizing belongings the next day, she says.
Nicola reached out to debt advisors at Money Wellness who showed her the support and benefit options she didn’t know she was eligible for and helped her get back on her feet. The 44-year-old lives in a rented home with her three children, two are working and her youngest has a disability that adds extra expenses onto the households.
She now receives just over £2,300 a month from Universal Credit, disability benefits and child benefit but this quickly is quickly drained by essentials like £667 on rent, £270 on utilities and £505 on food each month among other additional expenses due to her son’s disability.
She told Money Wellness: “I do struggle from month to month because all my payments come in more or less around the same time so I feel rich for a week or so. But with the rise in energy and food I’ve found I’m struggling even more and having to lend off my mum sometimes till I get paid, which is a vicious circle.
“I’m going back to work soon because I just can’t afford to live on LCW, now I’m getting better.”
Just a few miles away, Nicola’s younger sister Karen works 22 hours a week at Tesco and her household doesn’t receive much state help outside of child benefit, but they are still facing similar cost of living fears as Nicola.
The 37-year-old lives with her partner who works full-time and their two young daughters in the home they bought in 2018. But the worsening cost of living pressures have meant the pair have postponed their wedding for the last three years because they can’t justify the expense.
Despite having completely different employment situations, both sisters have said budgeting is getting increasingly difficult and highlighted the vital role family support has had in helping them stay afloat.
Nicola said: “We all muck in and help each other out.”
