Chancellor Caps Public Sector Pay

Phil Lane, a supervisor, is struggling with financial issues due to changes in his pension plan and a pay freeze. At 59, his retirement plans are in disarray, and he is concerned about how to manage his finances with a salary cap of 1%. He highlights the increasing cost of living, making it difficult to cover expenses like bills and groceries.

What does Phil Lane mean when he says that paying bills at 1% is 'nothing compared to' other costs?

In what ways does Phil Lane express the impact of the rising cost of living on his finances?