Tag: cost of living crisis

High food prices NOT driven by lack of supermarkets competition, says CMA

  • Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall
  • Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified
  • Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily

The Competition and Markets Authority (CMA) has today published an initial update on its ongoing work to tackle cost of living pressures in groceries with the publication of two reports: an assessment of retail competition in the groceries sector and a review of unit pricing practices across major retailers.

At a time when food and other grocery prices are rising it is crucial that people can be confident that competition is working effectively to keep price rises as low as possible and that people can shop around and compare prices easily and with confidence.

Groceries

Over the past two months, the CMA has assessed how retail competition is working in the UK grocery sector, particularly between supermarkets such as Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl. Looking at the effectiveness of retail competition across the market, this stage of the CMA’s review has focused on the extent to which rivalry between retailers ensures they keep their prices as low as possible and whether consumers can shop around to get the best deals.

Although food price inflation is at historically high levels, evidence collected to date by the CMA indicates that competition issues have not been driving this.

In particular:

  • Operating profits in the retail grocery sector fell by 41.5% in 2022/23, compared with the previous year while average operating margins fell from 3.2% to 1.8%. This is due to retailers’ costs increasing faster than their revenues, indicating that rising costs have not been passed on in full to consumers.
  • Consumers are shopping around to get the best deals, and the lowest-price retailers – Aldi and Lidl – have gained share from their competitors. This suggests retailers are restricted in their ability to raise prices without losing business.

However not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores.

Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall.

The CMA’s review so far has focused on overall indicators of effective retail competition. It has not yet examined competition for individual product categories or across the wider grocery supply chain. This will be an important focus for the next phase of its work. Today’s update identifies 10 indicative product categories (including milk, bread, and baby formula) that merit further analysis to gain a deeper understanding of competition and price dynamics. Our choices are not an indication of any provisional concerns that competition for these products is ineffective.

As part of its ongoing work, the CMA could make recommendations to address any competition issues it finds or take a closer look at any areas which justify further scrutiny.

Unit Pricing

At a time when shoppers are looking for the most competitive deals, unit pricing provides critical information to ensure people can compare prices effectively.

The review looked at 11 supermarkets and 7 variety retailers (stores that sell homeware and household goods with a more limited range of groceries) that operate in the UK .

The CMA has found compliance concerns with the Price Marking Order (PMO) amongst all those it reviewed, however for some retailers these were relatively minor. The CMA has identified that compliance is worse amongst some variety retailers.

Some of the problems stem from the unit pricing rules themselves, which allow unhelpful inconsistencies in retailers’ practices and leave too much scope for interpretation. As a result, shoppers may be finding it hard to spot and compare the best deals.

The CMA’s concerns relate to:

  • Consistency – different measurements are being used for similar types of products, making it hard for consumers to compare deals on a like-for-like basis. For example, tea bags being priced per 100 grams for some products and others being unit priced per each tea bag.
  • Transparency – missing or incorrectly calculated unit pricing information both in store and online. For example, 250ml handwash costing £1.19 but unit priced at £476.00 per 100ml and unit pricing information unavailable online until items were selected.
  • Legibility – unit pricing information being difficult to read, for example text on labels being too small or shelf edge labels being obscured by promotional information or by shop fittings.
  • Promotions – some retailers not displaying unit prices for any products on promotion.

In its report, the CMA has set out recommendations on the unit pricing rules and is calling on the government to reform this legislation, to help shoppers spot the best deals. The CMA has also written to those that are not fully complying with the PMO and expects them to make changes to address its concerns or risk enforcement action.

More broadly the CMA is calling on all retailers to give consumers the unit pricing information they need to make meaningful comparisons, particularly for products on promotion, even before any reforms to the PMO are introduced.

The CMA will publish the findings of its consumer research into the use of unit pricing in Autumn 2023.

Sarah Cardell, CEO of the CMA said: With so many people struggling to feed their families, it’s vital that we do everything we can to make sure people find the best prices easily.

“We’ve found that not all retailers are displaying prices as clearly as they should , which could be hampering people’s ability to compare product prices. We’re writing to these retailers and warning them to make the necessary changes or risk facing enforcement action . The law itself needs to be tightened here, so we are also calling on the government to bring in reforms.

“We’ve also looked at how competition is working across the grocery retail market more widely. The overall evidence suggests a better picture than in the fuel market, with stronger price competition between all of the supermarkets and discounters. In the next phase of our work, we will examine competition and prices across the supply chain for the product categories we’ve identified.

“We’ll also continue to monitor the situation to ensure that competition remains effective as input costs start to fall.

More information and full reports can be found on our 

Unit Pricing and Groceries pages.

TUC: It’s time to end the pay disparity that penalises disabled workers

Disabled people are more at risk of having to make the difficult decision between heating and eating

Before the outbreak of the Covid-19 pandemic disabled workers faced huge barriers getting into and staying in work (writes TUC General Secretary PAUL NOWAK).

The pandemic, and the huge changes it has caused to our everyday lives, has exacerbated the barriers disabled people face.

Not only have disabled people been disproportionately affected in terms of loss of life, with six in 10 Covid-19 related deaths being disabled people, but pre-existing workplace barriers have been accentuated by the pandemic.

And now, new data published by the TUC for our disabled workers conference shows disabled workers are much more likely to earn less than non-disabled workers.

That’s not right.

Having an impairment should never mean you get paid less or that you’re on worse terms and conditions. However, for too many disabled workers in this country, it is an all too true reality.

With spiralling inflation and eye watering bills, workers are having their income stretched in every direction. But for disabled people, the situation is even more challenging.

Let’s not forget – disabled workers face even higher living costs than non-disabled workers. So as the cost-of-living crisis continues to play havoc with everyone’s lives, we know that these workers are feeling the pinch even more.

But the challenges don’t end there.

Disabled workers also encounter more barriers in the workplace than non-disabled colleagues – with many worried that if they ask their employer for the reasonable adjustments they need to do their job, they’ll be refused outright.

New TUC analysis reveals disabled workers are much more likely to be paid less than their non-disabled colleagues – with those in the North of England and Wales even more likely to be paid less.

And we know that disabled people are more at risk of having to make the difficult decision between heating and eating.

With this cost-of-living crisis not looking like it’s going to end any time soon, things are only going to get worse. We need action now.

With the government too focused on its own political survival, ministers have done nothing to put the mind of disabled workers at ease.

Our call is clear: It’s time to end the pay disparity that penalises disabled workers and it’s time disabled workers get the support they need in the workplace.

At the TUC’s disabled workers conference, we heard from delegates about how the cost-of-living crisis is hitting disabled workers across the country. And we heard how we can build workplaces that work for everyone.

That means stamping out insecure work by banning zero-hour contracts, increasing the minimum wage and outlawing fire and rehire.

That means giving disabled workers fair access to request reasonable adjustments, and fining those employers who discriminate against workers because of any impairment. 

And that means forcing employers to come with an action plan to report their disability pay and employment gaps.

This is a plan which will deliver and transform the lives of so many disabled workers across the country.

Ministers must step up and act now.

Car insurance premiums rise by 40% across UK

The average cost of car insurance is now £776, after increasing by £119 (18%) in the past 3 months alone

●      Council tax and energy tops the list of the most expensive household bills, costing Brits £984 and £964 respectively, on average(1).

●      But drivers are still seeing savings, despite big price hikes, according to further research by Confused.com. Motorists who shopped around and switched in the past 3 months saved £63, on average, with only 9% reporting a cheaper renewal price year-on-year.

●      Why are prices rising? Confused.com experts suggest an increase in claims and consequently the cost of claims are rapidly rising. This would account for the unprecedented high increases in car insurance costs.

●      Confused.com issues advice to drivers on how to reduce car insurance costs as 2 in 5 (40%) Brits call on insurers to do more to keep prices lower. 

A staggering increase in the average cost of car insurance places it as the third most expensive household bill, new data has revealed. 

Motorists are now paying £776 for their car insurance, following a £119 (18%) increase in prices over the past 3 months, on average. That’s according to the latest (Q2 2023) car insurance price index, powered by WTW.

Based on more than 6 million quotes over the quarter, it’s the most comprehensive car insurance price index for comprehensive policies. According to the data, prices are now £222, or 40%, more expensive than they were 12 months ago, on average. This makes it the biggest price increase on record. And to put into context how quickly prices have increased, the average premium is 49% more expensive than 2 years ago, in comparison. 

These steep increases mean that car insurance costs are close to the expensive rates people are paying for council tax and energy, according to further research. A survey of 2,000 UK drivers(1) found that the average council tax bill is £984 per year, and £964 for energy. And that’s in addition to other expensive essentials, such as food and home entertainment.

That’s as research shows the average UK driver is spending:

●       £1,022 on food shopping

●      £690 on home entertainment services such as broadband and TV subscriptions. 

Are all drivers seeing price increases? 

Although some drivers saw some savings, most drivers are feeling the effects of these price hikes.  While this may look bleak to drivers, especially during a financially turbulent time, research also shows that there are savings to be made. According to the additional research, only 9% of UK drivers had a cheaper renewal price last quarter (April – June).

This proves that myths surrounding the regulations implemented by the Financial Conduct Authority in January 2021 aren’t true. Following the changes, many drivers believed they wouldn‘t get a more expensive renewal price.

But as the research proves, this isn’t the case. In fact, almost 2 in 3 (59%) saw their price increase, by £52, on average. This is despite almost a third (31%) having no driving convictions, and a further third (32%) having at least 1 year’s no-claims bonus on their policy.

However, many people trusted that they could find a better price, with almost half (46%) going on to switch providers. Of these, almost 2 in 3 (64%) used a price comparison site and saved £63 on their original price, on average.

It’s a similar picture for those who saw a cheaper price, which averaged at just £34 less than the previous year. Two in 5 (40%) went on to buy with another provider, with 1 in 2 (50%) using a price comparison site and also saved £63, on average.

It seems buying a new car insurance policy right now may sound unaffordable. But figures prove that drivers can still save money compared to the renewal price their current insurer is offering. 

Why are prices increasing? 

It’s clear from the data that prices are increasing for all drivers, whether they choose to renew or buy a new policy. But why are prices rising so significantly? 

One of  the biggest expenses for insurers is claims. During the pandemic, fewer cars were on the road.  As a result, the industry saw a reasonable drop in prices to reflect the reduction in claims being made. But now, research suggests normal driving habits have resumed. This could mean insurers are having to pay out for more claims than they were 2 years ago. 

But the important fact here is that the cost of these claims has increased significantly for insurers. Like with many other businesses, this is arguably down to the shift in inflation rates reported over the past 18 months.

And this, as a result, has driven up the cost of repairs and maintenance, which in the event of a claim, is covered by the insurer. This is especially true for newer cars, and many used cars that are in high demand. In fact, the Association for British Insurers (ABI) reported a 33% uplift in the cost of vehicle repairs last quarter.

We’re also seeing that used cars are holding their value more in the current climate. This means that payouts for write-offs or total losses are costing insurers more to cover. Similarly, new cars as well as electric vehicles are much higher in value than before due to more expensive features and upgrades coming as standard. This means paying out to replace a new car is costing insurers more.

What does this mean for drivers?

While the average cost of car insurance in the UK has reached £776, there are some drivers that will be paying significantly more than this. The price paid  varies quite a bit, based on a drivers’ gender, location and age. 

For example, the average premium for male drivers is now £827. This has increased by £236 (40%) in the last year, and £125 (18%) in the past 3 months. In comparison, female drivers are now paying £690, following a £198 (40%) increase year-on-year, and £107 (18%) over the quarter. This brings the average gap between them to £137.

Similarly, a driver’s location has a huge bearing on their price, with some now paying over £1,000 for their car insurance. A £299 (42%) increase in prices in Outer London has put the average premium in the region at £1,003 – the first time it has reached over £1,000 since the index began. However, Inner London remains the most expensive region in the UK, with the average driver now paying out £1,257. 

As expected, prices have risen across all UK regions, but some are still paying a considerable amount less than others. For example, the average insurance cost in the South West is only £509, despite a £136 (36%) increase over the year.

And in most cases, prices are at their most expensive on record for each region, with the exception of Manchester and Merseyside. The average car insurance cost in the region is now £965, making it the most expensive region outside of London. However, this is still £48 (-5%) less than the highest price paid on record (Q4 2011).

A driver’s age also determines how much they  pay, with younger drivers bearing the brunt of the biggest car insurance costs. Steep increases means that drivers aged between 17 and 19 are paying out more than £2,000 for their policies, on average. In particular, 18-year-olds are paying the most, with the average premium now £2,404.

This is followed by 19-year-olds, who are paying £2,097, and 17-year-olds who are paying £2,088. At the other end of the scale, drivers around retirement age benefit from the cheapest prices. In fact, for 69-year-olds, the average premium is just £413, in comparison, with drivers aged 61 and over all paying in the £400 bracket.

Why are some drivers paying more than others?

While it may seem unjustified for some drivers to be paying out such hefty prices compared to others, this all comes down to the risk.

For example, male drivers typically have a higher risk profile than women, as they statistically drive more miles and more expensive cars. This puts them at an increased risk of a payout for insurers, as they have to account for the cost of covering a higher value car. 

Claims frequency is the biggest explanation for why drivers pay more, and when it comes to location, it’s typically the more populated areas that see the biggest prices. This is because these areas have more cars on the road, higher traffic levels and therefore a higher risk of accidents and claims.

And when it comes to age, younger drivers who are typically less experienced  pay more as they’re at a higher risk of making a claim. However, as they build up their driving experience and their no-claims, they should see their costs reduce over time.

How can drivers save money?

With the cost of living crisis continuing to hit Brits in the pocket, it’s clear car insurance is quickly becoming another hefty expense for drivers. 

It’s no surprise, then, that 2 in 5 (40%) motorists are calling on insurers to do more to make the cost of car insurance more affordable. In fact, 1 in 4 (25%) claim they’re having to drive less due to the rising costs.

And 1 in 5 (20%) are finding the overall cost of driving too difficult to manage. With the average car insurance price now £772, the overall cost of motoring has reached almost £2,000. That’s as research shows the average UK driver is spending an additional £720 on fuel per year, and £455 on other car maintenance costs.

However, according to Confused.com’s fuel price index, the average price of petrol dropped to 143.3p in June, from 174.5p in August last year. Similarly, the price of diesel is just 145.5p compared to an eye-watering 187.1p, which drivers were paying last November. This goes to show that there are still some areas of motoring where drivers are saving money.

But just because car insurance prices are increasing, doesn’t mean that motorists have to pay more than they need to for their policies.

Experts at Confused.com have identified some key ways for drivers to take a few pounds off their insurance price, without making any significant changes to the way they drive.

●      Be accurate with your mileage – Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles can be a great way to save money on your car insurance policy. But don’t assume that a low mileage always means low prices. If you barely drive at all, your insurance company could see that as a risk as well.

●      Increase your voluntary excess – Increasing your voluntary excess can help you get cheaper car insurance, but you need to make sure you can afford to pay it, if you need to claim.

●      Pay for your car insurance annually – If you can afford it, paying for your insurance in one go rather than monthly is one way to get cheaper car insurance. That’s because insurance companies always charge interest for spreading the cost of your cover over the year.

●      Enhance your car security – The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways to improve your car security including:

○      Installing a Thatcham-approved car alarm or immobiliser, if it doesn’t already have one

○      Adding secondary levels of security like a steering lock.

○      Parking overnight in a secure, well-lit car park.

For more advice on how to reduce costs, visit Confused.com’s guide on how to get cheaper car insurance.

Louise Thomas, motor expert at Confused.com car insurance comments: “Car insurance has quickly become one of the biggest expenses for drivers. If prices continue at this rate then there’s no doubt drivers could be priced off the road, as they battle with other rising costs too.

“But what we do know is that many drivers were able to save some money when it came to renewal. And shopping around was the key to this. Even if prices were cheaper for them, the price they saw online was still significantly cheaper.

“Although this isn’t all drivers can do to save money. We always advise drivers to take a look at the details of their policy and make sure they’re accurate before committing to a price. Updating your mileage, or considering additional security could easily bring your price down.

“In the current climate we want to help drivers do all they can to make their insurance more affordable. But we know the key to this will be shopping around and seeing what the best price out there is. It’s a competitive industry and we’re confident that switching will result in savings.

“This is why we offer a guarantee to beat your renewal, or pay you the difference, plus £20. In this scenario, you don’t pay more, and you gain more cash!”

Council Tax ‘bombshell’ would hit 92,000 Edinburgh households – Boyack

Scottish Labour MSP Sarah Boyack has branded the SNP government’s consultation on Council Tax a “scandal”, revealing that the changes would hit 92,971 households in Edinburgh.

The SNP government is currently consulting on plans to hike Council Tax for properties in bands E to H – which would hit 39% per cent of households in Scotland’s capital.

People in the area could face increases of up to around £800.

This consultation follows years of ‘brutal’ budget cuts to Council budgets by the SNP government.

Scottish Labour MSP Sarah Boyack said: “Years of brutal cuts by the SNP has local services in [AREA] at breaking point, and now the government wants to plug the gaps with eye-watering Council Tax hikes of up to around £800.

“It is a scandal that ordinary Scots are once again being asked to pay more while getting less in return.

“This damaging Council Tax bombshell will hit more than 92,000 households in Edinburgh during the worst cost of living crisis in decades, piling pressure on people already facing impossible financial decisions.  

“Scots struggling with rising housing costs should be getting support from their government – but instead they are being asked to foot the bill for the SNP’s failure.

“Labour will stand up for people struggling with soaring living costs and fight for a fair deal for Edinburgh.”

BUT WHAT WOULD LABOUR ACTUALLY DO? REPLACE THE COUNCIL TAX? – Ed.

Local AuthorityHomes in bandsE to H % of homes affected  Potential increase  
Scotland715,31228% 
Aberdeen City32,65329%£821.11
Aberdeenshire50,87343%£768.12
Angus13,15923%£725.82
Argyll & Bute14,96332%£815.41
City of Edinburgh92,97139%£798.04
Clackmannanshire6,41326%£777.79
Dumfries & Galloway18,87026%£735.84
Dundee City10,43815%£819.39
East Ayrshire11,44720%£819.95
East Dunbartonshire25,47054%£780.38
East Lothian18,19336%£791.39
East Renfrewshire22,62357%£780.14
Falkirk18,08024%£751.81
Fife45,05626%£763.58
Glasgow City49,50117%£826.32
Highland34,14329%£786.73
Inverclyde7,14819%£788.16
Midlothian12,37429%£834.99
Moray9,55522%£788.67
Na h-Eileanan Siar1,55911%£711.53
North Ayrshire14,38721%£800.48
North Lanarkshire30,48220%£728.08
Orkney Islands1,91817%£754.78
Perth & Kinross26,90637%£773.78
Renfrewshire22,49226%£791.69
Scottish Borders16,51329%£747.56
Shetland Islands1,87117%£694.91
South Ayrshire18,49734%£801.05
South Lanarkshire41,06527%£717.07
Stirling17,65544%£816.68
West Dunbartonshire7,40317%£771.19
West Lothian20,63425%£766.77

Source: Chargeable Dwellings: Sep 2022 data: 

https://www.gov.scot/publications/council-tax-datasets/

Scottish Government Council Tax Consultation:

https://www.gov.scot/news/council-tax-consultation/

Digital Divide: Older people struggling to pay for broadband at risk of further financial losses

Nearly half (44%) of older people in Scotland on a low income1 have struggled to keep up with their broadband bill in the last 6 months, according to new research from the older people’s charity Independent Age.

Of that number, 18% found it a constant struggle, and 26% struggled from time to time.

Independent Age says the findings from YouGov commissioned polling raise fears that the cost of living has deepened the ‘digital divide’ and warns that older people in financial hardship may become even more isolated and could face additional costs if they are forced to shut off their internet access.

The survey also found:

  • More than 1 in 3 (35%) older people in financial hardship said they are worried they will not be able to pay their broadband bill over the next 6 months.
  • 36% are currently having to cut back their spending on their internet, phone or TV subscription services a great deal or a fair amount.
  • Almost 1 in 10 (9%) have already cancelled broadband and phone services over the winter in an effort to save money and 6% had already taken this action before the winter began, to save money.

The charity warns that not being able to go online could mean that older people on low incomes are unable to access information about financial entitlements or services, miss out on savings by not being able to search for the best deals and lose vital social connections.

It’s calling on broadband providers to further promote their social tariffs so that older people in financial hardship are aware that support for their internet costs is available. The charity also believes the Government has a role to play in  promoting social tariffs as part of the support available during the cost of living crisis.

Social tariffs are cheaper broadband contracts for those receiving means tested benefits, such as Pension Credit (the State Pension top-up for those on a low income). However, current take-up is low, with just 5.1% of eligible households using them2,and Independent Age say that eligible older people are going without as a result.

Morgan Vine, Head of Policy and Influencing at Independent Age, said: “The choice to engage online shouldn’t be taken away due to cost. We’re hearing from people in later life who are struggling to pay their broadband bills, cancelling their services, or making considerable sacrifices to afford this expense, such as going without fresh food.

“Cancelling broadband can mean someone misses out on the best deals, social connections with friends and family or on finding information about financial support they could be entitled to, such as Pension Credit or Attendance Allowance. 

“Independent Age is calling on broadband providers to do all they can to support vulnerable customers. We also think the Government has a role to play when promoting the options available now and thinking about consistency in the longer term. At the moment it’s a confusing picture for older people on low income, with each provider offering different options.

“While broadband social tariffs are available from most major providers, and can be a great help for those in financial hardship, take up is extremely low. Independent Age wants providers to proactively promote their social tariffs and target their activity at all eligible groups, including ensuring older people on a low income are not missed out.”

Details of all available social tariffs can be found on Ofcom’s website here: https://www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs#full-list-of-available-tariffs, or people who think they might be eligible can contact their provider to find out more.

Case study – Maggie’s Story

“There’s a growing assumption that we can all do everything online now, but because of my financial situation, I’ve had to cancel my phone and Internet contracts. So now if I want to do anything that involves being on the Internet, I need to get hold of a library that’s open at certain times.

“I don’t know what’s happened in other parts of the country, but we used to have access to Wi-Fi on Greater Manchester’s buses and trams. That disappeared during COVID. I’m assuming it was taken off as a cost-saving thing because people weren’t traveling on the buses, but they’ve never put it back.

“And that doesn’t just impact older people who don’t have Wi-Fi — it impacts young families who are trying to do stuff whilst they’re out and about because they can’t afford to pay for the subscription at home.”

Cost of living crisis impacts mental health of 2 in 3 over-40s, finds UK Care Guide workforce research

Research* from the UK Care Guide has found startling levels of stress amongst the workforce aged 40 and over, with over two thirds (67%) reporting increased levels of stress thanks to the cost of living crisis.

The survey, based on the data of 1487 respondents, found that a huge 72% directly attributed their increased levels of stress to the tightening of household budgets as a result of the cost of living crisis.

While work-related factors were a major cause, half of the respondents also identified personal and family-related factors as sources of stress.

Saq Hussain of UK Care Guide commented: “Our latest UK Care Guide research reveals a worrying surge in stress levels among UK workers aged 40 and over in the face of the cost of living crisis.

“This issue cuts deeper than just affecting productivity at work. It’s intruding into individuals’ personal lives, straining relationships and fundamentally undermining their mental wellbeing.

“Amidst these challenges, it’s commendable that almost half of those surveyed have adopted some form of coping mechanism to manage their stress levels. However, the glaring outlier is the lowly 20% looking for professional mental health support. This number signifies not only a potential stigma around seeking mental health assistance, but also perhaps hints at the lack of easily accessible mental health services.

“Our findings highlight an urgent call to action for employers, healthcare organisations, and policy-makers alike. There is a pressing need to not only address the root causes of workplace stress but also to create a supportive environment that promotes mental health resources and empowers individuals to effectively manage their stress levels without fear of stigma.”

For more information on the survey, please email: media@ukcareguide.co.uk 

Edinburgh parents more anxious than ever about the cost of school uniforms

The Leith Collective launches free school uniform exchange to help worried parents this summer  

School’s out for summer but far from signalling the start of a care-free holiday, many Edinburgh parents are already worrying about how they will afford new school uniforms when the holiday is over and the new academic year begins. 

That’s according to one local Community Interest Company, The Leith Collective, who are reporting a higher level of anxiety than ever amongst Edinburgh parents, many of whom have said they will be cutting back on summer holiday treats this year to meet the rising cost of essentials such as school uniforms.

And so, The Leith Collective is acting now to help alleviate some of that anxiety with the launch of their free school uniform exchange.

Taking place at The Leith Collective stores in Edinburgh’s Ocean Terminal and Fort Kinnaird as well as the Glasgow’s St Enoch Centre, this initiative will see locals donate good quality uniforms, schoolbags, pencil cases and school essentials to those in need. Items will be available for anyone to collect completely free of charge, no questions asked. 

Speaking ahead of the launch, The Leith Collective founder, Sara Thomson said; “Demand for our free school uniform exchange last year was high. Sadly, due to the ongoing cost of living crisis, there is an increasing number of families from all walks of life who are genuinely anxious about how they will kit out their kids again this year.

“So, we felt it was essential that we launch our free school uniform exchange as soon as possible – so that parents have at least one less thing to worry about throughout the school holidays.”

This summer’s free school uniform exchange follows The Leith Collective’s winter coat exchange which received an overwhelming response, with over 7,000 coats donated and collected by locals.  

People can donate and collect items at The Leith Collective in Ocean Terminal, Fort Kinnaird, and the St Enoch Centre during opening hours. No tights or socks can be accepted but all other good quality school items are welcome.

  • The Leith Collective at Ocean Terminal
    Ocean Drive, Edinburgh
    EH6 6JJ
    Opening hours: Monday – Saturday 11am – 6pm, and Sunday 11am – 5pm.
  • The Leith Collective at Fort Kinnaird
  • Newcraighall, Edinburgh
  • EH15 3RD
  • Opening hours: 10am – 8pm seven days a week
  • The Leith Collective at St Enoch Centre,
  • Glasgow G1 4BW
  • Opening hours: 10am – 5pm, seven days a week

Survey reveals the struggles families face this summer

National charity Family Action polled over 1,000 parents/carers to find out how this summer looks for families facing increasing financial pressures.

Over three quarters (76%) of parents/carers are worried about activity and entertainment costs for the summer holidays due to the rising cost of living.

A third (33%) of parents/carers surveyed will be going without a family holiday, and over a quarter (26%) will be going without days out for their family during or in preparation for this summer holiday, when compared to previous years.

Almost half (46%) of parents/carers surveyed think they will compare the school summer holiday they give their child/ren, this year, with what other parents around them give their children. The same figure feel more stressed and anxious about the school summer holidays this year than excited.

Over a third (36%) of parents/carers anticipate they will need to seek financial and/or emotional support to get through the school summer holidays this year.

Family Action’s free advice line FamilyLine is available 24/7 for families looking for support this summer

National charity Family Action polled over 1,000 parents/carers to find out how this summer looks for families facing increasing financial pressures.

Findings revealed that 76% of families are worried about the cost of days out, such as travel, entry fees and equipment costs, because of the cost of living crisis. In the run up to and during the school summer holidays, 26% of families will be going without days out completely, and 33% will be forgoing a family holiday this year, due to the rising cost of living.

Further findings from Family Action also highlighted an increase in mental health issues facing families this summer, with nearly half (46%) of parents/carers feeling more stressed and anxious about the school summer holidays, rather than excited.

The survey reveals that this year the school summer holidays are set to be a time when inequalities are amplified, with almost half (46%) of parents/carers surveyed set to compare the school summer holiday they give their child/ren, this year, with what other parents around them give their children.

David Holmes CBE, CEO at Family Action said: “Every family wants to make happy memories during the school holidays but, for many, this summer will be more difficult than ever. From juggling childcare to coping with the cost-of-living crisis and searching for affordable ways to have fun, the pressures can really build up.

“At Family Action we are here to help to make the summer a memorable one for the families we work with, and our services will be providing a range of ideas for simple and often free activities that all families can participate in. As our survey shows, 80% of parents/carers agree that making happy memories with their children can be free, so providing free or low cost activities is a great way to take some of the pressure off families this summer.”

Family Action runs over 170 services across the UK and this summer they will be coming together to make happy memories for the families they support, and providing the financial, practical or the emotional support needed to reduce shame and reassure families that making happy memories doesn’t have to cost a lot.

Family Action Service Manager, Leanne Best, said: “The families, volunteers, staff and colleagues we work alongside share with us that there is an expectation that summer school holidays should be a really happy time, where we spend lots of quality time together as families, doing fun activities, going on summer holidays and making special memories, but it is sadly not the reality for most this year.

“Many families are worrying that due to the cost of living crisis they will have to find more money for the basics, such as food, bills, childcare and school uniform. This means that they aren’t going to be able to afford holidays, days out, or activities which can result in stressful households and can leave people feeling guilty about ‘not being good enough’ or ‘not doing enough’ for their families.

Sanna uses our service and said: “I’m worried about trying to save up for 6 weeks because it will be quite a struggle financially because obviously the gas and electricity bill increased twice and the support we were getting from the government has stopped and has taken a chunk off the family budget, so I am worried about how I am going to keep the children entertained through the holidays.

“Family Action trips are the only time I’ll go out on a trip, as I don’t have the budget to take my kids out. Even if you go on a train its expensive and then you worry about the entry tickets. I do all the free things I can do with my kids I go to the park, for picnics, take them for a walk, but if you think about taking them somewhere where you need transport, entry tickets and food it can come to easily £100!

“When you do it by yourself you have all these worries, all these stresses, and all these anxieties, but when everything is provided, like the Family Action trips, all you need to do it sit, relax and make beautiful memories with your children.”

Leanne Best adds: “We have listened to these worries and in response, we will be enhancing the support we already offer to children, young people and families in Stockton, with the addition of our Summer Action Packs.

“Summer Action Packs will contain a variety of summer essentials, activities, tips & ideas, vouchers and information – which will hopefully enable families to worry a little less and have more resources and affordable opportunities, which will help them to enjoy some special family times over the Summer.”

David Holmes concludes: “At Family Action we believe that all children and families have the right to thrive. Together we can overcome the summer struggle and make it one to remember for all the right reasons.

“We know that families agree that the best memories don’t have to be expensive to make, but we also see the stress families feel under to provide the best possible summer holidays for their children, and we can help.

“Our services provide a lifeline to families with direct, practical, emotional and, where we can, financial support, all year long and our free adviceline FamilyLine is there for families across the UK, to provide advice and support.”

If you know someone who needs support, they can contact FamilyLine on 0808 802 6666, text 07537 404 282, email familyline@family-action.org.uk or visit  Family Action .

Chancellor agrees action plan with regulators to support consumers

As part of the government’s plan to halve inflation this year, the Chancellor chaired a roundtable with CEOs from the Competition and Market Authority (CMA), Financial Conduct Authority (FCA), Ofcom, Ofgem and Ofwat.

Jeremy Hunt made clear his expectation that regulators work at pace to guarantee markets are working properly. With wholesale energy prices and other input costs now beginning to fall – the Chancellor also wants to ensure consumers benefit from these reduced costs.

During this current period of high inflation and interest rates, this also includes ensuring higher interest rates are passed on to savers.

Chancellor of the Exchequer Jeremy Hunt said: “I am pleased we’ve secured agreement with the regulators to act urgently in areas where consumers need most support to ensure they are treated fairly.

“We are working hard to halve inflation this year and return to the 2 percent target. Businesses must play their part too and I will keep a watchful eye on the progress they make.”

The Chancellor also agreed a new action plan with the regulators to support consumers, particularly the most vulnerable:

FCA have agreed to:

  • Deliver better deals for savers by driving competition, including reporting by the end of July on how the savings market is supporting savers to benefit from higher interest rates. The Government fully supports the FCA’s review and the new Consumer Duty gives them stronger powers to take action if necessary.
  • Require the largest banks and building societies as part of this to explain the pace and extent of their pass through of interest rates, and how they are proactively supporting savers to switch to high interest rate products.

CMA have agreed to:

  • Deliver a better deal for motorists by publishing their review of the road fuel market, which examines profit margins in supermarkets and other fuel retailers, on Monday. This will include the impacts on vulnerable consumers.
  • Help shoppers pay fair prices by bringing forward their update of competition and unit pricing in the grocery sector to earlier in July and laying out next steps. This will include further scrutinising the food supply chain as well as measures to make it easier for consumers to make the best choices.
  • Following affordability pressures in the housing market, provide an update on their housebuilding market study and work in the rented accommodation sector in August.
  • Actively scrutinise markets where cost-of-living pressures are growing and launch work in at least two new areas the CMA considers in need of further investigation. It will also update on key developments in its ongoing crackdown on misleading consumer practices.

Ofcom have agreed to:

  • Take action to push suppliers who have yet to introduce social tariffs (discount deals for vulnerable customers) to offer them in the broadband and mobile markets, as well as waive fees for any customers who want to switch providers to access a social tariff.
  • Push suppliers to take immediate steps to raise awareness of existing social tariffs and drive consumer take-up. Ofcom will work with government and other relevant bodies to support industry efforts.
  • Publish a report on its current review of in-contract prices to ensure consumers are sufficiently aware of what they are signing up to by the end of the year. This will consider whether Ofcom’s rules need to be strengthened. Ofcom will also publish an update on its full range of work to support consumers in July.

Ofwat have agreed to:

  • Crack down on water companies not going far enough to support customers to pay their bills, access help and repay debts. This will include assessing water company compliance with Ofwat’s Paying Fair Guidelines, and where companies’ approaches are found to be insufficient, setting out clear actions for improvement in July. Next year, Ofwat will also set out clear and binding license conditions for every water company on how to treat their customers, including customers in vulnerable circumstances.
  • Hold water companies to account over delivering existing social tariffs for those unable to pay water bills, as well as allowing consumers to apply for payment holidays and offering support to those on low-incomes.
  • Ensure targeted support for vulnerable customers by improving data sharing, such as those struggling with bills (along with Ofgem).

Ofgem have agreed to:

  • Ensure all suppliers are passing falling prices onto consumers, keeping the price cap formula under review to ensure that it mirrors the costs facing suppliers. The new lower cap from 1 July will reduce a typical annual household energy bill by £426.
  • Strengthen protections and support for the vulnerable by mandating the Code of Practice on prepayment meters and ensuring that suppliers are able to offer Additional Support Credit (ASC) to PPM customers in need. Both are subject to Ofgem consultations launched today.
  • Take action against suppliers that have over-charged business customers and publish its review of the non-domestic market this Summer.
  • Scrutinise supplier finances as the sector begins to move from loss making back into profit. The regulator and government moved quickly to stem losses and protect consumers when prices were rising sharply and expects suppliers to act responsibly and in the interests of their customers as prices fall and profits return. This includes ensuring they deliver good service standards and support the most vulnerable customers. Those who are not yet meeting new capital requirements should retain profits rather than pay out dividends.

Regulators agreed to provide regular updates to the Treasury on their progress and that a follow up meeting would be held later this Summer. The FCA, Ofcom, Ofwat and Ofgem will also publish a joint statement to set shared expectations on treatment of customers in financial difficulties.

As part of wider discussions with the Governor in the context of high food inflation, the Bank of England is reviewing CMA data and meeting with the food sector, with analysis included in the August Monetary Policy Report and/or the minutes of the August meeting.

The meeting with regulators on what more they can do to support people through a period of high inflation comes while the government continues with its plan to halve inflation this year and support the Bank of England in taking difficult decisions to return to the 2 per cent target.

Commitments from regulators to make sure consumers are not being exploited build on one of the largest cost-of-living support packages in Europe which has been rolled out to help the most vulnerable, worth £3,300 per household on average over this year and last.

This includes paying half of a typical household energy, direct cost of living payments to the most vulnerable and increases to benefits, state pensions and the National Living Wage of around 10 per cent.

The CEOs attending were:

  • Ofcom (telecommunications) – Dame Melanie Dawes
  • Ofgem (energy) – Jonathan Brearley
  • Ofwat (water) – David Black
  • Competition and Market Authority (CMA) (competition/consumer) – Sarah Cardell
  • Financial Conduct Authority (FCA) (financial services) – Nikhil Rathi.