The Oxford Student | Friday 10 June 2022
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Editors: Daniel Kovacs, Shivanii Arun, Tom Elliott (deputy), Kylah Jacobs (deputy), Samuel Kenny (deputy) comment@oxfordstudent.com
9% Too Much?Harrison Gates
discusses recent inflation in the UK, and how it affects both university students and the general public.
Featured image credits: Geoff Livingston via Flickr
W
ith the dramatic rise in inflation across the country and the slow average pay increases causing a squeeze on the average homeowner, is the United Kingdom heading for a recession when we were set to become the fastest growing economy out of the G7 two years prior. With the added effects of the Covid-19 Pandemic, Ukrainian-Russian conflict and continued regional lockdowns still occurring in China all effecting the global supply chain is there anything the Government can do to help ease the burden on the British people and university students.But why should inflation Bread, beef, rice and chicken all increasing by around 15% in price.
worry the average pot noodle eating, bibliophile addict and party animal university student? Well ever since the Russia-Ukraine war started more than 104 days ago the price of oil and gas has skyrocketed to $119 a barrel, the highest it’s been since 2012. This has subsequently driven up the average price for your household bills as
the global market struggles to keep will increase to around 12% by this up with the demand and come to autumn and will not settle down terms with the situation at hand. by at least March of 2023. Breaking this down into exactly how much This has therefore caused prices more debt will be added and how to increase to around £700 more much you will have to pay back, than in January. Not only have after graduation if you earn under your gas and oil prices increased the threshold of £27,295 a year with dramatically but also the price of the current inflation rate expected food, growing from 3.5% in April by September expect to add anto 4.3% in March the highest since other £2,300 in interest every six 2012. This rise in inflation has also months. While if you find youreffected some of the most basic self earning around £50,000 a year commodities that every house- only expect to have £3,000 interest hold purchases such as bread, beef, added over six months. rice and chicken all increasing by If you earn under the around 15% in price which has threshold of £27,295 again put the strain on those most a year and with the vulnerable in our community. But where this rise in inflation current inflation will hurt the most for students is to rate then expect to be found in our lingering student add another £2,300 debt after graduation. Currently, in interest every six while students are in full-time study their interest rate is set at 3% months. above the RPI (Retail Price Index). According to the Bank of England, they predict inflation to increase Rent has also seen an increase to %10 by October, an astronomi- for students living both in halls cal number that will cause student and houses, St Catz has announced debt to skyrocket to new levels. an 11.8% escalation in rent for the next academic year, this being Other predictions have been from 2022-2023 meaning students made by the Institute for Fiscal will pay £1654 per term, rather Studies who claim that inflation than £1480 in the previous year.
For those not living in college the average rental prices grew by 2.5% in England in the last 12 months to April 2022, this represents the largest increase since January 2016.
always extraordinary amounts of money to be made. The chancellor has announced a Windfall Tax on Oil and Gas profits to help with the cost of living, this is estimated to raise £5 billion. But will this be “an insult to both the enough to help students?Currently, Queen and her decades of only half of students are employed unwavering service...”
Should we expect the soft hand of Rishi Sunak to break through the dark clouds forming over Britain and pull students out of this quicksand of debt. The short answer is no. It seems the government has almost pulled all the rabbits out of the hat and is unable to fix this situation with money and promises. The chancellor of the exchequer’s speech on the 26th of May 2022 says that “no government can solve every problem, particularly the complex and global challenge of inflation.” It seems like the Chancellor is just going to wait for this event to balance out over the coming months and use the already implemented policies to combat the rate of inflation. However, where there is economic uncertainty there are
Average total pay only grew to 5.4% while inflation has currently reached 9%.
while in a full-time study with an average weekly wage of £112.20. Those who need to work to afford University will see their hard earnt cash become worth less as the average total pay only grew to 5.4% while inflation has currently reached 9%. This inability to protect students in all corners will see students as some of the worst hit by this inflation. With the government silently shrinking the financial screw-on students, graduates and universities with their lack of support over the cost of living, rent increase and repayment structure should we be surprised that those in power who never had to pay tuition fees do not understand the situation facing us in now and in the future.
