Consumer Insights Newsletter #001
Analysing Discussion Around the Cost of Living Crisis
Sarah Ball
Sarah's 19 years of experience in the media analysis industry hold her in good stead for her role leading on research methodology development. She was an early innovator in social media insights work and is responsible for data sourcing and tool selection.
CONTEXT
With UK inflation at a 40-year high and predicted to increase up to 12% by October, the cost of living is starting to bite. Similar patterns of high inflation are playing out across major economies, at 9.1% in the US, 7.6% in Germany and 5.8% in France.
Between 14th and 31st July 2022, almost eight million low-income households in the UK will receive an additional payment of £326 to help them manage their budgets in the face of high inflation, particularly around fuel, energy and food.
We analysed posts from UK social media users on Tik Tok, Twitter, Forums and Facebook Groups who stated they would receive the payment, to understand how they intended to spend the extra cash. The analysis included posts from 14th to 20th July 2022.
INSIGHT:
Uncertainty over payment impacting mental health
The UK Government’s decision not to confirm directly with individuals whether they were eligible meant that many were unsure if they would receive it at all. The Government failed to recognise that many recipients are living and hand to mouth, so not knowing when in a two-week window the money would be received left them unable to budget effectively.
Widespread uncertainty about when payments would be received, coupled with a lack of confirmation of eligibility, caused extreme stress and anxiety. Concerned individuals set up a Facebook group to offer support and community to those with questions and anxiety over the payments, generating 700 posts and thousands of replies in the six days since it was set up.
On Twitter, there were desperate cries for help from those who had not received the money early in the payment window and were running low on food or out of credit on the electric meter. That an extra payment was desperately needed to keep food in the fridge and keep the lights on indicates how inflation in everyday essentials is already pushing people to the edge.
INSIGHT:
Majority planning to spend on essentials
Critics implied on social media that those receiving the extra payment would waste it on non-essential purchases, such as alcohol, cigarettes or takeaways. A number of posts speculated that pizza delivery services and budget pub chains were busier than usual as the payment landed.
The analysis offered a reality check, as 74% of recipients’ posts indicated that the recipient intended to spend at least part of the cash on essential purchases, with over half of posts mentioning spending on daily essentials of food, bills and rent. Just 21% solely mentioned plans for non-essential purchases, while 5% said they would use the money to pay off debts or add to savings.
The very small proportion who were able to save the extra cash indicated another trend - the vast majority of recipients had immediate or imminent plans to spend the additional cash, with “it’s all gone” being a common phrase shortly after payments were received. This again indicates the urgency of the need; the majority were unable to keep the cash to help with increases to energy bills expected in October.
“I still haven't had mine it's making my anxiety so bad”:
"It's a godsend that temporarily helped”
“I really need this payment to live”