Energy price cap rise will “hammer households even harder” in 2024

  • The energy price cap has increased to £1,928 raising the average bill by £94
  • Union body says UK is “feeding foreign firms’ profits” while British households struggle 

Commenting on Monday’s energy price cap announcement, TUC General Secretary Paul Nowak said: “No one should struggle to get by in one of the richest countries in the world. 

“But 13 years of wage stagnation and cuts to social security have left millions badly exposed to sky-high bills this winter. 

“Energy bills are already 50% higher than two years ago, so today’s rise will just hammer households even harder in the coming year. “ 

“It doesn’t have to be this way.  

“Other governments are investing in publicly owned clean power and insulating homes.” 

“The UK is feeding foreign firms’ profits and subsidising cheaper bills abroad, while British households struggle to heat their homes and pay their bills.” 

Choudhury: ‘Scandalous food poverty levels must be addressed urgently’

NEW analysis by Scottish Labour has revealed that the parcels delivered by foodbanks in the City of Edinburgh has soared by 89% since 2018, with a shocking 94% rise in the number of parcels issued for children in the City of Edinburgh.

For West Lothian, there has been an increase in parcels of 81% since 2018, and a rise of 77% for parcels issued for children. 

In the six months from 1 April to 30 September 2023 alone, there was a shocking 16,038 parcels distributed in the City of Edinburgh Council and 4,250 in West Lothian.  

Foysol Choudhury, a Labour list MSP for Lothian, has raised concerns about the level of foodbank use and says that more urgency is needed to tackle food poverty in Edinburgh, Lothian and the rest of Scotland.

Mr Choudhury, alongside Scottish Labour, has raised concerns that the Scottish Government recently delayed the implementation of the Good Food Nations Act by half a year.

Scottish Labour also says the Scottish Government has repeatedly failed to set out a timeline for enshrining a legal Right to Food in Scots law – something Scottish Labour MSP Rhoda Grant is pursuing in a Member’s Bill. 

Mr Choudhury said: “The levels of food poverty in Scotland are scandalous and the Scottish Government must act urgently.  

“We should not have people in Scotland going hungry, cutting back, choosing between heating and eating or relying on foodbanks. 

“I have met with so many brilliant organisations who work tirelessly to support those in food poverty-organisations like Empty Kitchens, Full Hearts and The Larder. However, they shouldn’t have to fill the gap where legislation and political leadership should be. 

“We need real leadership from both of our governments – but the Tories and the SNP are both missing in action.  

“The Lothian region deserves better than these two failing and out-of-touch governments – we need action at every level to tackle this shameful food poverty crisis and enshrine in law a legal Right to Food.” 

Funding support for charities providing food, shelter and warmth

Over 800 charities and community organisations in England struggling with increased demand have been awarded funding as part of a £76 million package

  • Food banks, warm hubs and safe spaces amongst the first 800 charities to benefit from support for frontline charities and community organisations meeting increased demand for critical services   
  • Up to £38 million already allocated to support organisations carrying out vital work helping the most vulnerable
  • Additional package of support to improve the energy efficiency of community organisations now open for applications

Over 800 charities and community organisations struggling with increased demand have been awarded funding as part of a £76 million package to help vulnerable people.

Projects tackling food poverty, homelessness charities and services offering financial advice are amongst those to benefit from funding, providing a much needed funding boost for those  meeting increased demand for their critical services. 

The National Lottery Community Fund, the largest community funder in the UK, will continue to make awards from the Community Organisations Cost of Living Fund  throughout December and January.

UK Minister for Civil Society Stuart Andrew said: “Charities and community organisations are on the frontline helping the most vulnerable in society, and we are allocating £100 million in recognition that they are struggling too, as demand and costs both increase. 

“Over 800 charities have already been awarded these significant grants, meaning they can continue to help those in need and we will continue to roll out funding at pace.”

This funding comes at a critical time as charities and organisations support more people struggling to heat their homes and access hot meals. Grants worth between £10,000 and £75,000 are being allocated to cover project and core costs, including for premise rent, utilities, staff and volunteers.

David Knott, Chief Executive at The National Lottery Community Fund, said: “We’re proud to be distributing Government funding to enable frontline projects in England to support communities facing the impact of the rising cost of living.

“From the provision of food, shelter and safe spaces, to financial or housing advice, over 800 awards have already been made to critical services that will strengthen communities and improve lives at a challenging time.”

Examples of organisations that will be supported include:

  • Springwell Village Community Venue, Sunderland (above): Funding of £45,000 is supporting the project to focus on its food supply of hot meals and food parcels, and the provision of toiletry packs for disadvantaged young people and older people in the community. It will also provide a safe and warm space over the winter months to support those struggling with the rising cost of utility bills. 
  • Brunswick Youth and Community Centre, Merseyside: In the past 12 months BYCC have adapted their support offer to provide additional food, clothes and essential items due to significant surge in need. Funding of £39,500 will support the project to deliver these services and expand the offering to more beneficiaries, as well as increasing access to their warm space. 
  • Muslim Women’s Council, Bradford: The Curry Circle project provides hot meals in a warm environment to anyone facing food poverty. Funding of over £50,000 is supporting  it to revive a number of services including increased number of hot takeaways, doorstep delivery of food parcels and survival packs with sanitary products. They also aim to provide weekly access to debt advice at the venue where the meals are served.
  • SocietyLinks Tower Hamlets, London: SocietyLinks Tower Hamlets is a community-based charity providing services including after school clubs, holiday provision, youth services, employment support, women’s services, health and fitness programmes and older peoples’ services for disadvantaged residents in the borough.  Funding of over £28,000 will support the continuation of these services, including a food bank, youth safe hub, a warm hub for those aged 50+ and clothing recycling programme (below). 
  • The Centre Project Limited, Leicester: This community hub has been awarded over £40,000 to expand and continue its range of services, which includes a foodbank, warm space, hot meals, social activities, youth club and advice services. They support people who may be vulnerable due to loneliness, isolation, poor housing, unemployment, homelessness, mental health issues or in crisis. 
  • Housing Matters, Bristol: Housing Matters offers an advice, support and advocacy service for people in housing and financial crisis in and around Bristol, advising clients on disputes with landlords, rent arrears, disrepair and overcrowding amongst other issues. Funding of nearly £40,000 is supporting it to pay for the running costs of its housing advice service including telephone, email and face to face support offered at community centres.  
  • SHAPE Birmingham, Birmingham: SHAPE offers shelter for homeless young women. SHAPE is currently facing an increase in demand for its services due to a rise in the cost of living, alongside a rise in running costs of the hostel. Funding of over £35,000 is supporting them to hire a part time worker, enabling them to support more young women. 
  • Christian Action and Resource Enterprise, Grimsby: Christian Action and Resource Enterprise Ltd (CARE) is an established charity running various projects including housing, food, furniture and emergency supplies, warmth, a safe space, and financial and housing advice in North East Lincolnshire. Funding of £75,000 will pay for extra staff hours and the cost of additional IT infrastructure, allowing it to continue its work assessing residents for food and utility vouchers; giving advice and help with finances; support for those struggling with domestic abuse; and providing housing for vulnerable people.

As part of the £100 million package of support allocated during the Spring Budget, it was also announced that £25.5 million will be used to pay for measures to help voluntary, community, and social enterprise (VCSE) organisations in England improve their energy efficiency. 

Funding will help the long term energy and financial resilience of the sector as well as supporting the Government’s commitment to meeting a net zero target by 2050. Via independent energy assessments, organisations will be able to identify how to reduce bills through measures such as improving or installing new energy features in the building.

The fund will also support the installation of new energy measures, such as insulation, heating and lighting systems, where applicants are eligible. 

Applications for the £25.5m VCSE Energy Efficiency Scheme, administered by community charity Groundwork, are now open. Eligible organisations are able to apply for funding via the Groundwork website

This funding follows a support package of £750 million dedicated to help charities adapt and maintain essential services during the pandemic as part of the government’s unprecedented £400 billion COVID support package.

Awards offered under CCLF

This file is in an OpenDocument format

Edinburgh Food Project: Holiday opening hours

Our foodbanks will be closed on Christmas Day, Boxing Day, and Monday 1 and Tuesday 2 January.

Otherwise, the foodbanks will be open as usual, except for Craigmillar, which closes on Thursday 21 December, and reopens on Thursday 4 January.

Find out more: https://edinburghfoodproject.org/locations

Increasing numbers of pet owners rely on the support of food banks to feed their animals

Edinburgh Dog and Cat Home reports demand for pet food bank support is now outstripping the supply

As the cost of living escalates, increasing demand is being made on food banks.  And not just to feed people – pet owners are being faced with the awful reality of not being able to afford food for their animals so have begun to rely on food banks to feed their beloved pets. 

At the end of 2020 the Edinburgh Dog and Cat Home supplied fifty food banks in East and Central Scotland with vital meals for pets.  They now supply 88 and requests from pet owners since last year has risen by 33%.

To demonstrate just how much demand has increased, in October 2020 the Home provided 500 food bank meals – compared with a staggering 52,613 in October 2023. 

Community Outreach Lead at the Edinburgh Dog and Cat Home, Kirsten Gillon, said that the cost-of-living crisis is partly to blame.  She said, “The cost-of-living crisis has really accentuated the fact that people are needing help to feed their pets.

“And it’s not always people who are on benefits who need us, it’s also people who are working and can’t access government support, so they are forced turn to our food banks.”

The demand for pet food bank support is growing so rapidly it is currently outstripping supply. 

Kirsten continued, “The need is just growing and growing, it’s not declining in any way. The need is far greater than anything I thought it would be. And trying to find enough donations to fill the requests is really difficult. 

“We’ve tried to increase donations coming in and we try to split donations as fairly and equally as we can across locations. It’s not always possible as we are at the mercy of the generous donations of the public.”

Without food bank support from the Edinburgh Dog and Cat Home, some pet owners would be forced to surrender their beloved dog or cat, as this anonymous user explains:

“Pets are key to my mental health as well as physical health and over all wellbeing. I didn’t realise I could get help with dog food and have been going without so I could feed my two dogs. This help with food is so appreciated and allows us all to be fed and stay together.”

The Edinburgh Dog and Cat Home finds winter an especially difficult season as higher costs drain funds while demand for their vital services increases.

To help get through the winter months, the Home recently launched a Winter Appeal, seeking donations to enable the Home to cope with the increased demand, continue providing vital support to animals in need and help people to keep their beloved pets at home.

To make a donation and to read more of their life-altering stories please visit www.edch.org.uk/winterappeal OR text SURRENDER to 70560 to donate £5.

Donations of £20 can provide a cat with the vaccinations they require to be rehomed or £100 could keep a dog warm in the Home for three months.

Texts will cost the donation amount plus one standard network rate message, and you’ll be opting into hearing more from Edinburgh Dog and Cat Home. If you would like to donate but don’t wish to hear more, text SURRENDERNOINFO instead.

The support of generous donors has kept Edinburgh Dog and Cat Home open for 140 years and given animals a safe place to recover, find love and to support 88 foodbanks across East and Central Scotland. 

Scots urged to use unspent Best Start Foods balances

Christmas letter will remind families to use money on card   

Hundreds of people who get the Scottish Government’s Best Start Foods benefit will receive a pre-Christmas reminder urging them to spend large balances which have built up on their cards. 

Letters will be sent by Social Security Scotland to cardholders who have accrued balances of £600 or more. 

Best Start Foods is money £19.80 every four weeks by pre-paid card during pregnancy and for any children between one and three years old. The payment increases to £39.60 from birth until the age of one. 

The card can be used to help with the cost of milk and healthy foods like fruit, vegetables and eggs as well as first infant formula. 

People who get the card need to activate it by calling 0808 196 1687 – then it is topped up every four weeks. 

However, a small number of people who get it have either never activated the card or stopped using it – meaning balances build up. 

It’s this group who are being reminded they have money to spend. 

After receiving the first of these letters, more than 100 cards have since been activated and tens of thousands of pounds spent by recipients. 

Cabinet Secretary for Social Justice Shirley-Anne Somerville said: “We want to ensure people get access to every bit of financial support to which they are entitled. 

“It’s part of our approach to social security to make sure that we treat people with dignity, fairness and respect and that they’re not obstructed or ignored.

“Our message to people who get Best Start Foods is to look out their cards and check balances. It’s simple to do, either online or at cashpoints. 

“The money can be a big help to families dealing with the costs of Christmas and New Year.” 

Food Access and Sharing Points across North Edinburgh this winter

COMMUNITY FOOD SUPPORT AS WINTER ARRIVES

PILTON Community Health Project have updated their Food Access & Sharing Points document.

Trying to get by on whatever income we have can be incredibly challenging for many of us, particularly in the winter months.

Take a look on here to find our where you can get a meal, hot drink or groceries.

If you’d like a hard copy of this to take home, please pop in and ask. Also, please share with any neighbours or local friends to make sure everyone knows about these.

Cash-strapped Christmas 

British frontline workers worse off than European peers, despite clocking up more hours

  • Study finds 51% will go into debt to pay for Christmas 
  • 43% feel there’s ‘too much pressure to spend’ during the festive season

Brits are feeling the pinch more than their overseas counterparts, with 56% saying their wages barely cover living expenses compared to 39% of Germans, 31% of Nordic workers (Sweden, Denmark, Norway and Finland) and 29% of Dutch contemporaries.

That’s according to a first-of-its-kind study by global workforce management provider, Quinyx. It polled over 3000 shift and non-desk-based workers in the retail, fashion, wholesale, shipping, distribution, warehousing and logistics industries to gain a fuller understanding of how the cost-of-living crisis is affecting employees in Europe. 

Despite respondents across all countries working more hours in 2023 compared to previous years – peaking at 46% in the UK and The Netherlands, many had to accept help to cover the cost of everyday essentials. 

Around two in five (39%) workers in The Netherlands received financial support from family and friends to pay the bills (31% in the UK), while more than a quarter (26%) of those surveyed in the Nordics and Germany turned to food banks (11% in the UK).

With Christmas only weeks away, apprehension around the cost and associated pressures at home and work are mounting in the UK and overseas.

More than half of Brits (51%) will be getting into debt this festive season – a sentiment echoed in the Nordics (58%), 29% are dreading Christmas because of the cost, felt by 32% and 26% of Nordic and Dutch respondents respectively, and 43% think there’s too much pressure on people to spend money at Christmas.

However, it’s not all bah humbug! 41% surveyed in the UK said it makes them happy when they see people spending lots of money on seasonal gifts and activities – as Christmas is a time to be enjoyed, and 39% like working in December because of the festive cheer.

Toma Pagojute, Chief HR Officer at Quinyx, says: “Beyond the excitement and merriment of the holidays, many frontline workers – everyone from delivery drivers and waiting staff to warehouse operatives and retail assistants, are faced with increased workloads and insurmountable financial challenges.

“And as our study proves, the UK isn’t alone in that – the cost of living is proving a burden in Europe too. 

“So, what’s the best gift business leaders can give our dedicated workforce on the frontline this year? Engage with them, listen, and provide support when and where they need it the most. This can be through flexible work schedules, improved communications and by ensuring their working conditions are the best they can be.”

Download the country comparison study breakdown: https://www.quinyx.com/2023-cost-of-christmas 

Ofgem: Increased wholesale energy costs lead to rise in price cap

Energy regulator Ofgem has today (Thursday 23 November, 2023) announced the energy price cap for the first quarter of 2024.  

The price cap will increase by 5% on the previous quarter from 1 January to 31 March 2024. For an average household paying by direct debit for dual fuel this equates to £1,928, a rise of £94 over the course of a year – around £7.83 a month. The price cap, updated every quarter, sets a maximum that can be charged to customers for energy bills. 

Ofgem’s priority is to protect consumers and ensure that they pay a fair price for their energy. Today’s price increase is driven almost entirely by rising costs in the international wholesale energy market due to market instability and global events, particularly the conflict in Ukraine. 

The regulator will continue to use all levers available to ensure costs are spread fairly and   customers struggling with bills are supported. It has today further developed plans to permanently remove the so-called ‘prepayment meter premium’ to ensure that prepayment customers are charged the same standing charge as direct debit customers. Ofgem has already launched a ‘Call for Input’ on standing charges running until 19 January, 2024. 

Jonathan Brearley, CEO of Ofgem, said: “This is a difficult time for many people, and any increase in bills will be worrying. But this rise – around the levels we saw in August – is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay. 

“It is important that customers are supported and we have made clear to suppliers that we expect them to identify and offer help to those who are struggling with bills. 

“We are also seeing the return of choice to the market, which is a positive sign and customers could benefit from shopping around with a range of tariffs now available offering the security of a fixed rate or a more flexible deal that tracks below the price cap.  

“People should weigh up all the information, seek independent advice from trusted sources and consider what is most important for them whether that’s the lowest price or the security of a fixed deal.” 

Ofgem recently set out new rules for suppliers making clear that they should be prioritising enquiries from vulnerable customers who need help and proactively reaching out to households if they miss two monthly or one quarterly payment, check to see if they are struggling with bills and, if so, offer support such as affordable payment plans or, if appropriate, repayment holidays. 

The regulator has also taken robust action to raise standards of customer service and worked in conjunction with suppliers and consumer groups to encourage industry to support those struggling with their bills, including the Winter 2023 Voluntary Debt Commitment recently announced by Energy UK and Citizens Advice. 

A Statutory Consultation on levelling standing charges for prepayment meter and direct debit customers so customers pay the same daily charge has been published today.  

Previously, customers on prepayment have been charged more than those who pay by direct debit to cover the additional costs and resources required by suppliers to provide their services. 

In October 2022, the government introduced measures to temporarily remove this ‘PPM premium’ via the Energy Price Guarantee, which remains in place until April 2024. 

Following a consultation this summer, Ofgem is now proposing an enduring solution that would ‘levelise’ these standing charges to coincide with the end of that government support. This consultation also sets out proposals to share the costs of bad debt more equally across customers to reduce the premium paid by standard credit customers (those who pay on receipt of a monthly or quarterly bill for the exact amount of energy used). 

Under the terms of the regulator’s proposal, this would save PPM customers around £50 a year, reduce Standard Credit bills by around £45 a year but add around £20 a year for direct debit customers. Ofgem is keen to hear views on this proposal from all interested parties.    

This follows the launch of a wider conversation on the issue of standing charges last week and how they should be set, which has already attracted a high number of responses in the first week of the consultation. 

In response to today’s Ofgem energy price cap announcement, Joanna Elson CBE, Chief Executive of Independent Age said: ““Today’s energy price cap announcement offers little reassurance for older people in financial hardship, with bills still 85% higher than before the energy crisis.  

“We speak to people in later life who are living in one room because they can’t afford to properly heat their home, those who risk falls because they aren’t turning on the lights, and older people who are in thousands of pounds of debt to energy suppliers. They urgently need help.  

“With average energy prices having close to doubled in recent years, coupled with rocketing household costs such as water, food and broadband, those on a low income have endured several years of sky-high costs from all angles. Older people in financial hardship are especially vulnerable to sharp price increases, as many are on a fixed income. The extra money simply isn’t there. 
 
“The UK Government needs to announce financial support now to help the most financially vulnerable, including those in later life, get through this winter. After that, we need a long-term solution to protect against the impact of continuing high prices, including energy.

“Our evidence shows an energy social tariff would offer more stability to older people on a low income and make sure no one is forced to make dangerous choices. This must be something the UK Government consults on.” 

The next quarterly price cap announcement will be announced in February 2024, covering April – June 2024. 

Cost of living crisis forces low-income households to ‘drastically modify’ travel habits

Edinburgh architecture. Trafic on Princes Streeet in front of Edinburgh Castle.

An Edinburgh Napier University study suggests inflation has worsened transport inequalities

The cost of living crisis has deepened inequalities in the way people in Scotland are able to travel, according to an Edinburgh Napier University (ENU) study.

Analysis of Transport Scotland survey results by researchers at ENU’s Transport Research Institute (TRI) and Aristotle University of Thessaloniki show that rising inflation during 2022 disproportionately affected how those from low-income households and ethnic minorities can get about.

More than one in four respondents said they had changed their usual mode of transport to save money, while nearly 38% appeared to reduce their number of journeys.

While people on low incomes were forced to ‘drastically modify’ their travel habits, soaring costs also had an unequal effect on women, millennials, rural residents, and people with disabilities.

The study concludes that more action needs to be taken to make transport more affordable and accessible, in order to prevent people from becoming socially isolated.

Staff portraits October 2018 Achille Fonzone

Achille Fonzone, Professor of Transport Analysis and Planning at Edinburgh Napier University’s School of Computing, Engineering & the Built Environment, said: “These findings shed light on how the cost of living crisis has exacerbated already existing inequalities in how people are able to get around.

“Travel makes up a large portion of people’s overall spending, and greatly influences inflation. Although latest figures signal an encouraging trend around personal vehicles and fuel, public transport fares are increasing above the general rise in living costs.

“If remedial measures are not taken soon by central government and local authorities, disparities will only deepen further.”

Greg Fountas, Assistant Professor at the Aristotle University of Thessaloniki and Associate member of TRI, added: “During times of economic crisis, public transport should be leading the way towards more affordable, sustainable travel, otherwise more and more people will be at risk of transport poverty and, in turn, social exclusion.

“Prioritising investment in policies such as fare caps, concessionary ticket schemes, improved active travel infrastructure or community transport programmes would not only help narrow these inequalities, but also help us towards environmental targets.” 

Other conclusions from the study, ‘The Impact of the Cost-Of-Living Crisis on Travel Choices of Scottish Residents: An Exploratory Analysis’, include:

·        People living in the central belt, with more public transport options, were more likely to have changed how they travel, while people in Highlands and Islands were more prone to reducing the number of journeys  

·        Generally, respondents were more likely to reduce their trips rather than change transport method because of cost 

·        Those who responded to the survey later in 2022 were more likely to have changed their habits, as the impact of the cost of living crisis was felt 

·        Being from a low-income household was the most significant variable on reducing journeys 

·        Women were more likely to cut down on trips than men 

The Public Attitudes Survey by Transport Scotland, which was first conducted in 2020, formed the basis for this study. Three waves of the survey were carried out in 2022, the last of which coincided with inflation surpassing 11% – a 41-year high. Answers from 2,705 people, who were deemed representative of ‘a key strata’ of the Scottish population, were statistically analysed.

The findings, which are undergoing peer review, will be presented to a conference in the United States next year.