The cost of living crisis in the UK
The UK is currently struggling with a cost of living crisis, which is the cumulative effect of Brexit, the pandemic, the Ukraine war, global inflation and local policies.
In July, inflation hit 10% in the UK. While there is a global inflationary trend in 2022, this percentage is higher than in many other developed countries. For instance, inflation is currently 8.5% in the United States, 7.5% in Germany and 2.6% in Japan. As reported by the Guardian, the Bank of England forecasts that inflation could rise to 13%, while Citibank makes an even gloomier forecast of an inflation rate of 18% in January 2023. Meanwhile, salaries in the UK haven't risen in line with the galloping inflation.
Trade unions have held multiple protests across the country for the minimum wage to be raised to £15 (17.5 USD) an hour and for the government to take rapid, concrete measures to help the middle- and working-class. The main contenders for the post of Prime Minister, Rishi Sunak and Liz Truss, haven't provided clear answers yet, which is breeding a sense of frustration and political uncertainty. Limited cash handouts from the state are unable to keep some families afloat. One campaign named Don't Pay UK is even encouraging Britons to not pay their energy bills in October as a form of protest.
That is because the latest blow has been the announcement of an upcoming rise in electricity and gas bills in October. The average energy bill will reach £3,549 (about 4,100 USD) per year in October. In summer 2022, it was £2,100, and in the last winter before the pandemic (winter 2019), it was £1,227, according to Ofgem, the government regulator for energy. The hike will not stop in October, for it is forecasted to rise over £5000 in 2023. To put things into perspective, new graduates in the UK often earn between £18,000-£28,000 – an energy bill of £5000 is 17-28% of their income. The average UK wage is £38,131 – that energy bill would take 13% of it.
Middle-class and working-class Britons are struggling
It should be no surprise that many Britons are struggling financially. The Financial Times reports that British consumers have stopped buying branded goods when doing their groceries, and are instead choosing cheaper own-label brands, even for basic products like sliced bread. A British IT consultant, Lewis Ford, penned an opinion piece in Al Jazeera about how his family is struggling financially despite both him and his wife, a finance professional, having high-paying jobs.
Fresh university graduates are also facing a difficult entry into the working world. In the Guardian, Aravindh Suresh, a 21-year-old who will soon be graduating in economics from LSE, says that despite how salaries run high in his field, he is struggling to find flats that cost less than £900 a month. Young graduates in less lucrative fields are in an even more dire situation. Deyna Grimshaw, a 21-year-old final-year student in English literature, says that she will struggle to leave her parents' home as she owes £60,000 in course fees and maintenance loans and is unlikely to get a “very high-paid” job. Inflation has also raised the interest on student debt that young graduates owe monthly.
Most alarmingly, many British families might be left out in the cold this winter as they are unable to afford energy bills. The steep rise in the cost of energy has imperiled some 9000 “crisis hotspots” in the UK, reports the End Fuel Poverty Coalition. These regions, some of which are in large metropolitan areas like Birmingham, lack proper home insulation. In winter, it could lead to the deaths of the vulnerable, like young children and the elderly.
Migration as a solution
The cost of living crisis detailed above explains why 4.5 million, based on Totaljobs' survey, want to move abroad. A quarter of the respondents also said that they would move if offered a job package. 3%, which equals 380,000 British workers, are taking the steps to move abroad within the next two years.
The percentage is particularly high among Londoners (23%) and young people between 18-25. Explanations could be the cosmopolitan nature of Londoners as well as the exorbitant cost of living in the British capital. This year, barristers and bus drivers in the city have striked to protest against the cost of living. As for young adults, the desire to travel after not being able to during two years of the pandemic is a strong motivating factor. Adults between 35-44 were the ones who tended to cite the cost of living as the prime factor for moving abroad (48% provided it as the main reason). They are likely to have families to raise and debts to pay off.
To what countries are these Britons moving or considering moving to? The international relocation company Movehub lists these ten top destinations: Australia, the United States, Canada, Spain, Ireland, New Zealand, France, South Africa, Germany and Italy.
Australia stands out as the top choice. Over 1 million Britons live in Australia, and the immigration law firm Reiss Edwards revealed that Google searches for ‘apply for Australian visa' increased by 670% in recent months. In April 2022, more general Google searches for ‘move abroad' increased by 1000%.
Close to one million Britons live in the United States and half a million live in Canada. South Africa, where over 100,000 Britons live, is popular for its good weather and the affordability of housing, says the expat insurance company, William Russell. The company also states that the number of British expats abroad has risen by 30% after the Brexit vote in 2016. Brexit initiated a trend that is continuing with the current cost of living crisis. Some are even calling it the “Great Relocation,” echoing the Great Resignation that saw people in the US leave their jobs during the pandemic.
