In the last year, there has been a sharp decline in the financial security of Norwegian households. Almost seven out of ten households have had to take measures to make ends meet. This is revealed in a recent report from the Consumer Research Institute SIFO. About the report Dyrtid und upseiling II. Households’ financial security in 2022 By Christian Poppe and Elaine Kempson This is the second report from a larger data collection on households’ financial security in 2022. Data for this report was collected in August, while the first data collection was in June. Together with three reports from the corona era, these reports provide an overview of the households’ finances over the past three years. In August 2022, 130,000 households, or 5 per cent, find themselves in serious financial difficulties. A further 280,000, or eleven per cent, struggle financially. This is a doubling from the previous year. – This is undoubtedly a bigger crisis than the one we saw during the corona pandemic, says Sifo researcher Christian Poppe, who is one of the authors behind the report. 35 per cent of households in Norway are in a “vulnerable” position financially, while 49 per cent are “safe”. – At the same time, the proportion of financially secure households has fallen from two-thirds to just under 50 per cent for the first time since we started measuring financial security, says Poppe. Inside “animal times” Poppe calls the period we are now in “animal times”, a term from the interwar period for a period of strongly rising prices. There are three trends in economic development in particular that worry the researcher: There are many people who have to make difficult choices between food and electricity. Around one in six households has either saved on food to be able to pay the electricity bill, or cut back on electricity consumption to be able to afford food. There are signs that food poverty is emerging in the wake of the animal age. One in twelve households state that they either pay for meals, visit food stations or contact Nav for help paying for food. Many of the households at lower levels of financial security use savings to cover the costs of necessary consumption. Twelve percent of households have already used up their savings. One in twelve households say that they either pay for meals, collect food from food stations or contact Nav for help paying for food. Photo: Truls Alnes Antonsen / news – There are clear signs that the animal age has serious consequences and that many are faced with difficult choices in order to pay for necessities such as food and electricity, says Poppe. At the same time, the surveys show that 14 per cent borrow for food and necessary consumption to make ends meet. – This is not sustainable in the long term, says the researcher. Uneven effect Although the vast majority of people experience increased living costs, the effects are not evenly distributed, the report shows. Low-income households are hardest hit. The same applies to families with children and households where someone is disabled or seriously ill. Pensioners and households with higher incomes are often far more financially secure. Increase at Matsentralen The increase in households struggling financially is felt at Matsentralen Norge. At the moment, they are experiencing a tremendous increase, says general manager Per Kristian Rålm. – We are collecting more food than ever, but the need for food is increasing much more. The general manager of Matsentralen Norge, Per Christian Rålm, says that they do not supply enough food to cover the need. They are noticing a tremendous increase at the moment. Photo: Truls Alnes Antonsen / news During the year, the Food Center expects to distribute 10 million meals. Rålm believes they would have had to distribute 20 million meals if they were to cover the need. The food center sends food to various charities, and has a website where people can find out where they can pick up food. Do food prices affect the most One of those who collects food several times a week at such food stations is Leif (68). He was formerly disabled and is now retired, and has been picking up food at the Evangeliesenteret in Oslo since last autumn. – The economy is not always enough, so it is difficult. Leif (68) collects food at the Evangelisenteret several times a week, and is keen to cook the food himself. – As you get older, you don’t need as much food, so it’s fine, he says. Photo: Truls Alnes Antonsen / news He says he has noticed that attendance at the Evangeliesenteret has increased recently. – This is really a place for drug addicts, but there are a lot of other people who also come here and get help with food. Everyone complains that the money is not enough. For his part, food prices are the biggest challenge. He says that he lives in a group with six other pensioners and disabled people who share the kitchen and fridge. He collects the food at the Evangelisenteret, because several of the others have bad bones. He freezes vegetables he buys in bundles, picks berries and mushrooms in the forest and dresses himself at home to save on electricity. Now that the key interest rate and the consumer price index have increased, he also expects the rent to increase. But he has a philosophy of life, he says. – You shouldn’t go around worrying too much, because it does a lot of damage. So I have a consistently good mood – that’s important to maintain, no matter how bad things are.
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More and more people have to choose between electricity and food – news Norway – Overview of news from different parts of the country
