Lord Sugar on the economy: The cost-of-living crisis is an undeniable time bomb which needs defusing

It isn't all rosy, whatever George Osborne thinksGetty Images

We have heard lots of talk about the economy moving in to a recovery phase, but this means nothing until the average person’s pocket starts to feel the effects.

For most, the economic crisis has been the rapidly rising cost of living.

Any signs of growth in the UK economy are of course welcome and there has been some recent good news but there is absolutely no room for complacency.

This growth has been a long time coming and the scars it has left on the economy will take a long time to erase. Yes, business confidence is creeping up to pre-recession levels and the unemployment rate has recently fallen.

But while the Bank of England Governor says the glass is half full it should also be remembered that, for the other half, there is still nothing to drink.

The growth we are seeing still does nothing to tackle the crisis that the majority of people are struggling with on a daily basis. Take the positive headlines on the falling unemployment numbers. 

There are currently a load of workers in Britain who have part-time jobs, but want full-time work. 

And of those part-time workers, some want to do more but can’t get extra hours.  So it’s true we have more people working, but the people working those jobs are under-employed, working fewer hours and taking home less pay, while prices continue to rise faster than wages.   

Whether you call it a cost-of-living crisis or everyone having to tighten their belts, there is an undeniable time bomb which needs defusing. 

In the past three years we have seen the numbers of people relying on food banks treble. Chances are you probably know someone who has used one, although they may not have told you.

This includes thousands of people who are in work but are so poorly paid that they are now unable to fill their cupboards or in some cases their children’s stomachs. 

Now, I am not going to kid you that people like me or those working in the City will be making the difficult choice between heating and eating this winter, but there are too many people who will.

They aren’t the scroungers who play games with the benefit system, they are decent people who have a work ethic and do their bit, but are simply being paid less than it takes to live on. 

They are the people who share the life I had when I was growing up on our council estate in Hackney, on the terraces of Spurs, in factories and working all hours to make ends meet. They are the ones at the sharp end of a low-wage economy.

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