Introduction

My name is Dylan Cleverley, and I live in Swansea. I am writing to you to show my proposal to my solution to the cost-of-living crisis, how it will benefit everyone, including the government, and how this will be implemented.

Our purpose

The cost-of-living crisis has put millions of families in discomfort, suffering and even destitution. Our purpose is to stop the cost-of-living crisis to improve the community’s financial stability and quality of life. This proposal contains policies which will do so as well as benefit the government, businesses, employees and the country as a whole.

Overview

I propose that all businesses in this country must be required to adjust their employees’ and workers’ salaries and wages directly in proportion to overall inflation, and the mean percentage of increase and decrease in the cost of essential needs (food, water, shelter) and common wants (education, childcare). By doing so, incomes keep pace with the rising costs, thereby helping people maintain their financial stability as well as their purchasing power.

How will this benefit everyone?

This proposal benefits everyone in several ways:

• For Employees: By receiving paychecks that keep pace with the rising costs, employees can maintain their purchasing power and quality of life, as well as their financial stability. This reduces stress long-term and short-term, and increases productivity, happiness, and morale.
• For Businesses: While businesses adjust wages and salaries to keep pace with rising costs, they also sell their products at higher prices due to inflation. This further increase in revenue can offset the higher paycheck costs. Furthermore, a financially stable workforce can benefit businesses through higher consumption and increased demand for their products and services.
• For the Government: Higher business revenues and increased salaries and wages can benefit the government through greater tax revenues. This additional tax income can be used to support our country, our infrastructure and our services, which benefit society in Britain as a whole. Moreover, by ensuring economic stability and financial stability in the United Kingdom, the government can foster a more resourceful and dominating economy.

How will we implement these policies?

Although the concerns about the cost-of-living are urgent, we must make the resources for businesses and service providers to follow these policies with ease.

Resources I will be developing include:

• A formula for pay rise and fall based on these policies*
• An online calculator which incorporates this formula for businesses and organisations
• A web-based portal for employees linked to HM Work & Pensions’ API, that show the fluctuations in paychecks, and the price of bills and taxes

*Formula (in %):

((ABN Inflation+Top 3 Stores Average Inflation+ABW Inflation)+2%)/6

Where

ABN = Average Basic Needs

ABW = Average Basic Wants

ADW = Average Distinguished Wants

How will these resources work?

These resources will work together as their purposes are the same thing: to stop the cost-of-living crisis.

Here is my proposal of how the calculator will function in chronological order:

Service providers notify the government of fluctuations in cost a week in advance in a percentage. Service providers need a good reason for inflation to follow my proposal.
These changes are sent forward to the calculator for organisations and the portal for workers.
This then updates the calculator when inflation does occur, for real-time paycheck fluctuations to occur, thus ensuring that said paycheck keeps up with inflation and expense fluctuations.

How will these laws be enforced?

I advise that legislation should occur as soon as all of the resources above are developed. However, these should be enforced in a stress-free and digestible way, as sudden changes may be frowned upon in our country.

Suggested penalties for failing to follow the policies above (which are also summarised below) include:

• £10,000 fine for service providers if rise in expenses occur without supporting reason.
• £1,000-£10,000 compensation to (each) worker for organisations if they underpay employees and workers. The range above is determined based on the size of said organisation and the amount of employees the organisation has.

Summary of proposed policies:

This is the summary of the policies which form a significant part of this proposal:

• Businesses must pay their employees in direct proportion to the fluctuations in inflation as well as the cost of living.
• Businesses must use the calculator before paying their employee(s).
• Service providers must notify the government one week in advance before fluctuating their prices. They must also have a reason to support their decision.
• Failure to employ these policies will result in the penalties as shown above.

Conclusion

I hope you have seen how this proposal stops the cost-of-living crisis and how it also benefits the government, businesses, employees, stakeholders, which can improve our country's economy, financial stability and our society as a whole.