The combination of sky-high electricity bills and increased food and fuel prices means that many people feel extra in their wallets now.
Marianne Sundet (31) and her cohabitant Andreas Grøtterud (30) notice the explosive price increase very well.
– The worst thing is that the tight economy goes beyond the children. There have been many tears and sleepless nights, says the 31-year-old stepmother.
The family earns less than average and has therefore always been good at turning over the crowns. But in recent months it has only become more and more difficult.
Lots of bread dinners
– I think about kroner and øre all the time, no matter what we do. Trying to shower less often and faster. We are reluctant every time we have to use the car, as the fuel is so expensive. And make simpler dinners than we usually do, says Sundet.
– EXPENSIVE DROPS: Andreas Grøtterud thinks it is frighteningly expensive to fill the tank. Photo: Per Haugen / TV 2
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Sundet says that there is a lot of bread dinners in the family of five, when the salaries are not enough for all the expenses.
– It hurts that we can not afford to serve nutritious dinners to the children. It is unfortunately cheaper with less nutritious food, she says and sighs.
The family is also trying to take other measures, such as running the washing machine less often.
– But there is a balance here. If the children come to school with stained clothes, they will be bullied. It also hurts a mother to say no, when the children want to participate in activities.
– OVERVIEW: Marianne keeps a neat overview of all expenses. Photo: Per Haugen / TV 2
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The Sound had hopes that the change of government would mean that it was now the turn of ordinary people. But she feels that politicians do not understand how much the sharp rise in prices actually affects them.
– I can not understand why it is not possible to cut fees or provide support to those who have the least. It is important that politicians wake up and take action. If it continues as it is now, with such large differences between rich and poor, it will eventually lead to mistrust and contempt for politicians, says the 31-year-old.
Several ask for help
The voluntary organization “Rett Fram Opplevelser” in Drammen has in the last eight years met many of the families who have the least, by creating and offering activities to those who can not afford it.
Ronny Johnsen, who is the leader of the organization, now notices that more and more families are seeking them out.
– The scariest thing now is that families who have done just right, do not do it anymore. It is the families that are increasing the most with us now, says Johnsen.
Shameful and shocked
He tells of shameful, shocked and frustrated mothers who suddenly can no longer manage financially.
– SCARY TREND: Ronny Johnsen in the organization “Straight Ahead Experiences” now sees that more and more families with bad advice are contacting them. Photo: Frode Sunde / TV 2
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– For some, an additional expense of 1000 kroner a month is enough to make the budget for things like birthdays, clothes and important, nice things disappear.
Throughout the pandemic, Johnsen has seen that families he has contact with have been completely on the rim. Socially excluded and many low-wage earners lost the small income or part-time job they had.
– It was these so-called corona victims who were to be helped extra much. But then we got prizes from another world, and then it dawned on even more families.
Several of the parents he talks to are terrified that they will not be able to pay the electricity bill and that the electricity will then be cut off.
– The electricity prices we have now suffocate the budget of many parents, who already end up in the red every month. If the power is cut, you live with your children in the cold and darkness. That threat is frightening for many, says Johnsen.
Record number of cases
The debt collection industry also notices that many more are starting to have financial problems.
– We have never received so many debt collection cases as now, says general manager Geir Grindland in InkassoPartner.
They are now seeing a new trend: They are getting in many cases involving people who have never been registered with them before. Those who normally manage to pay the bills have started to struggle.
– RECORD: Geir Grindland in InkassoPartner has never received so many debt collection cases as now.
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– We see that many prioritize paying the electricity bill, but struggle to pay the other bills. The debt collection cases that come in are about everything from municipal fees to medical bills. Those who struggle do not prioritize these bills, says Grindland, and continues:
– Although it is not always the electricity bill itself that has gone to debt collection, it is often the high electricity prices that are the reason for the debt collection case anyway.
– Scary time ahead
He sees that those who are hardest hit are the low-paid, such as minimum pensioners, social security and students. The high electricity prices also make a big dent in families with young children, who, among other things, have many expenses related to the children.
The high electricity prices that have persisted over time have meant that people have used up the buffer they had. The money in the account has disappeared and they are unable to pay the bills.
– Debt collection debt in Norway is already at a sky-high 115 billion kroner, and I think it will increase greatly towards the summer. It’s a pretty scary time ahead. There are dark clouds on the horizon, says Grindland.
The top of the iceberg
The debt collection company has never received so many cases as now. But Grindland believes that the time ahead will be even worse, as it takes around 45 days from the time a case is registered until it goes to debt collection.
– It is now the next weeks and months that we will really see debt collection cases as a result of the high electricity bills. We have now had around half a year with high electricity bills, and for many the total burden becomes too great over time, says Grindland.
He sees that with each passing month, the savings account is eaten up, and people are pushed ever closer to the precipice.
– In the end, many have nothing more to pay with. I think we’ve just seen the tip of the iceberg. It will be extreme in the future, he says.
Crisis packages
Several parties are now advocating crisis packages against the sharply rising prices.
At the Progress Party’s national meeting this weekend, they will discuss a comprehensive package to curb inflation.
– The state now receives enormous extra income from high electricity prices as well as oil and gas exports. The Progress Party demands that the large extra revenues that the state receives benefit the population through reduced taxes and compensation schemes, it is stated in a resolution which is proposed to be adopted by the editorial committee.
Rødt and Krf also believe that measures should be introduced against the rising prices.
The two parties are in favor of cuts in the toll on petrol and diesel until July and a revised budget.
Red is also in favor of halving food VAT and halving public transport prices. While the FRP is in favor of removing the fuel tax, the CO2 tax and halving the food VAT, a proposal they failed to get any other party to agree to.
– This winter we have had a cocktail of increased prices for both electricity, food and fuel, and now we also see that interest rates are rising. Unfortunately, the parliamentary majority also takes a “wait and see” attitude in this matter. While they wait, the wallet is emptied for both families and business, says Frps Roy Steffensen.
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