cost of living crisis – Page 26 – The NEN

‘It’s Hard Work Being Poor’

A new report has found shocking evidence that women in Scotland are suffering increasing hardship, destitution, and food insecurity due to lack of support during the cost-of-living crisis.

In research conducted in partnership, the Poverty Alliance and the Scottish Women’s Budget Group (SWBG) found that women are experiencing increasing financial hardship and are at risk of falling into further debt as a consequence of the cost-of-living crisis. Women in low-paid work reported often missing out on social security support or cost-of-living payments, or free school meals, because they earn just above income thresholds.

The research was funded by abrdn Financial Fairness Trust and Esmée Fairbairn Foundation and included women from diverse backgrounds across Scotland. Women told researchers they are worried whether they will be able to afford their energy bills in winter and parents and carers are struggling to afford food and essential items like baby wipes, incontinence pads, and toilet roll.

The report contains 15 recommendations on how to better support women through this crisis and beyond. Key priorities include:

Ensuring adequate incomes for all through a “caring social security system”;
Investing in preventative public services and in support and advice services to help people manage debt;
Improving community amenities and services, ensuring that support provided is free from stigma;
For the UK government to uplift social security in line with inflation;
For the Scottish government to expand eligibility to sources of emergency support for women experiencing in-work hardship.

Download the report from here.

SWBG co-ordinator Sara Cowan said: “The costs crisis is affecting the vast majority of us, but this powerful research highlights again the unjust way that poverty especially affects women in our society.

“Women are more likely to be poor, have lower levels of savings and wealth, and are less able to find suitable work or increase their hours if they’re in work often due to caring responsibilities that fall disproportionately on women.

“The women in this research talked about the impossible decisions they had to make to prioritise feeding their children, and whether or not to turn the heating on. Or not being able to buy things like baby wipes, incontinence pads, or toilet roll.

“The Scottish and UK Governments can help by increasing and extending the emergency support available to people, and working to put justice and compassion at the heart of social security and our public services.”

Vivienne Jackson, Programme Manager at abrdn Financial Fairness Trust, said: “This important research shines a light on the real experiences of women in Scotland. It’s not right that people are struggling to afford to feed their families, or having to live in freezing cold houses because they can’t afford to put their heating on.

“We hope this research will add to the growing body of evidence that households need much more help from government during this crisis, and that we need to make financial fairness an urgent government priority.”

Fiona McHardy, Research and Information Manager at the Poverty Alliance, said: “This research shows that women are at risk of being pushed into destitution. The financial support that has been made available so far by both UK and Scottish Governments to help with the cost-of-living crisis is clearly not sufficient for many of the women in our study.

“It is vital that the UK Government increases the value of social security benefits in line with inflation. Any cut to UK benefits will led to unacceptable hardship for more women.

“In Scotland, we must find ways to expand eligibility for people who are in employment, are in need, but miss out on support. Too many women in Scotland are in urgent need of support – Scottish Ministers must leave no stone unturned in finding resources to support them during this crisis.”

SWBG_PA_Cost_of_Living_Report_Final Download

Women’s Realities (case studies)

The diary entries and interviews document women’s increasing desperation and despair as costs kept rising and incomes stayed where they are.

Stella

Stella, a Black lone-parent mother living with her children. Due to illness and subsequently losing employment, she had to apply for Universal Credit two years ago.

Even before the cost-of-living crisis, she noted how Universal Credit was an ‘insufficient means of livelihood even under normal circumstances as a single parent’. Now, due to increased utility bills, Stella supplements income with credit cards, which are accruing debt, and asking to ‘borrow money from family and…friends for financial help’. Stella was concerned about her energy bills, so now she only uses the washing machine once a week for her family.

Stella’s children were conscious of rising costs: ‘even as a child [her son] realises how much food bills have increased, and it impacts him greatly’. On top of the impact this is having for her child, she shared that she is having to consider ‘significant changes in [their household’s] diet’.

Stella was becoming increasingly socially isolated because of the high cost and unreliability of public transport. Consequently, she is unable to ‘attend church every Sunday. This impacts me spiritually and deprives me of much needed interaction and social isolation’.

Her September entries were mainly focused on how price rises were impacting every aspect of her family’s life. Food was costing over £20 more each shop, and when thinking about the future, she noted: ‘it will be too much and [she] will not be able to afford it’.

Stella wrote: “This cost-of-living crisis have brought untold pain and suffering on women especially single parents and children because of the way it impacts our lives on a daily basis. Not being able to afford the essentials of life can be very stressful and robs women of their dignity and self-worth.”

Sue

Sue is a white lone parent mother who has long-term health issues. She works part-time and recently stopped accessing Employment and Support Allowance by taking on a second low-income job.

To manage increased costs of living on her low income, Sue made a list of ideas including getting another part-time job, asking for more hours in her current employment, asking for a mortgage holiday, skipping meals and selling jewellery and things in the house. She wrote: “Sad one this for me, sold jewellery, mine and my gran’s wedding rings…but it is to help in a crisis that our household is facing and needs action fast so it had to be done”.

Idia

Idia, a lone mother, reflected on the challenges of being able to afford food and going hungry in almost all her diary entries. On the small amount she receives as an asylum seeker for her family, she wondered how she is expected to be able to buy food with costs rising week by week. She shared the damaging impacts on her mental health. She also shared: “the most frustrating part of the week for me was not being able to afford to get my kids snacks”.

“I spoke to my friend who told me she has been starving and only eats at night,” Idia said. “I have started doing that though it didn’t go well with me the first day, but I will get used to it.”

Sarah

Sarah is a parent and works full-time in a role providing advice and support to people in the community. In October, she was concerned about managing her existing debts and rising energy costs, particularly as she lives in an old house with poor insulation. She is no longer able to afford to go out places and see family or friends. Her interview highlighted the challenges for people in low-paid work during the crisis. She is not entitled to benefits or support with the cost of living.

Sarah said: “And I was thinking, ‘How can I… how can I keep my daughter, how can I keep warm? What if I have to go to work and then come home and freeze my ass off every night. And I was, I honestly got to the point where I was thinking, ‘What’s the point of living?’ You were going into shops, the prices were going up so much, and it was like, ‘Well I work so God damn hard, I get no help. I’m helping people get help, do you know what I mean? But yet I can’t access any help myself?’.”

Circle launches Sponsor the Difference winter campaign

Circle has launched their ‘Sponsor the Difference’ campaign to help families cope with the effects of the cost-of-living crisis and stay warm, fed, clothed and safe this winter.

Circle is a Scottish charity working at the heart of disadvantaged communities across central Scotland. These communities are impacted by persistent poverty, social injustice, and health inequalities, problems that have only been worsened as a result of the crisis.

Families will be experiencing difficulties and hardship as the costs of energy, food, fuel, and the basic essentials of day-to-day living continue to increase. Circle have already seen an increase in accessing additional support for heating and food and this is only going to worsen over the winter months.

“It’s been a real pressure with rising prices. I reckon my food bill has gone up by a third. I’d like to batch cook and freeze things but that increases my electricity bill. It’s tight providing food for the family, I try to buy sensibly, using all the yellow labels but the prices mean there’s no scope for any unexpected bills like when the washing machine broke. I worry about the winter and how we’ll cope.”- Parent

The families Circle support desperately need material aid – food, clothing, and money for energy bills. They also need whole family support, that will give them the guidance, skills, and resources to cope with the emotional and psychological effects of the cost-of-living crisis.

Therefore, the charity has launched their winter campaign – Sponsor the Difference – to ask for donations to help children and families in desperate need cope with the cost-of-living crisis.

Families supported by Circle’s work were heavily involved in the creation of the campaign by providing examples of how they’ve been affected by the crisis and participating in case studies to share their experiences to raise awareness of the challenges they face and reminding others that they aren’t alone.

This is part of Circle’s participation strategy, to give children and families they work with the confidence and opportunity to have their voices heard and be listened to.

All donations will go towards purchasing energy cards, food vouchers and warm winter clothes for families to help them make it through one of the harshest winters they have ever faced.

The charity highlighted the issues facing many of their families across Challenge Poverty Week and are using the Winter Campaign to continue to spread awareness of the detrimental impact that the cost-of-living crisis is having on families across Scotland.

Circle CEO, Mark Kennedy said “While Challenge Poverty Week did help to highlight the effects that poverty has on too many families across Scotland, we remain very conscious of the need to keep helping the families that do not have the means to afford the basic necessities of life.

“At Circle, we will remain focused on helping families to eat, keep warm, and ensure that children have what they need to attend school through one of the harshest winters they have ever faced.”

A £10 donation could cover the rise in gas and electricity bills for a family for one week, and they have many more examples of how a little from you could go a long way for a family.

Sponsor the Difference now by visiting:

https://circle.scot/support-us/winter-campaign/

PAC: Ofgem failures “come at considerable cost to energy billpayers”

“Problems in the energy supply market were apparent in 2018 – years before the unprecedented spike in prices that sparked the current crisis, and Ofgem was too slow to act.“

In a report published today Westminster’s Public Accounts Committee calls on the Department for Business, Energy and Industrial Strategy and Ofgem to say how they will make “the energy retail market work in the best interests of customers during the transition to net zero” after finding that failures at the energy regulator have come “at a considerable cost to billpayers”.

Since July 2021, 29 energy suppliers have failed, affecting around 4 million households. Customers have been left to pay the £2.7 billion cost of supplier failures. This means an extra £94 per household, a cost that will very likely increase.

The Committee found that this was due to “Ofgem’s failure to effectively regulate the energy supplier market”.

Ofgem “did not strike the right balance between promoting competition in the energy suppliers market and ensuring energy suppliers were financially resilient”.

Despite problems with the financial resilience of energy retailers emerging in 2018 Ofgem did not tighten requirements for new suppliers until 2019, and for existing suppliers until 2021. By this point wholesale gas and electricity prices increased to unprecedented levels.

The price cap “is providing only very limited protection to households from increases in the wholesale price of energy”, and Ofgem expects prices could “get significantly worse through 2023”. The Committee says BEIS and Ofgem should “review the costs and benefits of the price cap from a consumer’s perspective” to inform decisions about the future of energy price controls.

The position of vulnerable customers, who already pay higher energy prices, is “unacceptable”.

Dame Meg Hillier MP, Chair of the Public Accounts Committee, said: “ “It is true that global factors caused the unprecedented gas and electricity prices that have caused so many energy supplier failures over the last year, at such terrible cost to households. But the fact remains that we have regulators to set the framework to shore us up for the bad times.

“Problems in the energy supply market were apparent in 2018 – years before the unprecedented spike in prices that sparked the current crisis, and Ofgem was too slow to act.

“Households will pay dear, with the cost of bailouts added to record and rising bills. The PAC wants to see a plan, within six months, for how Government and Ofgem will put customers’ interests at the heart of a reformed energy market, driving the transition to Net Zero.”

Support for people living in Edinburgh to tackle energy bills and fuel poverty

There are now an estimated 860,000 fuel-poor households in Scotland following the latest increase in energy bills on 1 October

As more and more people across the country continue to worry about the cost of living, Zero Carbon Buildings Minister Patrick Harvie wants people living in Edinburgh to know that free impartial advice and financial support is available to help make home energy improvements.

Home Energy Scotland’s ‘Warmer Homes Scotland’ programme could provide funding of up to £5,000 to help support homeowners in Edinburgh to make their homes warmer, greener and more efficient to heat. This latest Scottish Government campaign aims to raise awareness of the support available to tackle energy bills and fuel poverty.

Commenting on the launch of the Home Energy Scotland 2022/23 campaign, Zero Carbon Buildings Minister Patrick Harvie said: “Many people across the country including Edinburgh continue to worry about the cost of living crisis and the big rise in energy bills caused by surging gas prices.

“Our latest estimates indicate that there are around 860,000 fuel-poor households in Scotland, of which 600,000 will experience extreme fuel poverty, following the latest increase in energy bills on 1 October.

“We are making sure that anyone in Edinburgh worried about or struggling to pay their energy bills can get the right support and advice.

“Our Home Energy Scotland service, delivered by the Energy Saving Trust, provides free and impartial advice, support and funding to help households in Scotland to better insulate their homes saving on energy costs while at the same time reducing their impact on the environment.

“The Home Energy Scotland team are on hand to advise how our Warmer Homes Scotland programme could provide funding of up to £5,000 to help make your home warmer, greener and more efficient to heat.

“A range of measures – big and small – to improve energy efficiency around your home are likely to be available, and I’d urge all households to find out more and get advice as soon as possible.”

Local politicians to host Cost of Living events on Friday 18 November

On Friday 18 November @DeidreBrock & Ben MacPherson are hosting Cost of Living Help & Advice Events at @Leithcomcentre & @RoystonWardieCC.

As well as us & our teams, national & local organisations will be there to assist.

No appointment necessary.

Please spread the word.

#Leith

#Edinburgh

Cost of Living Crisis: £324 payment to hit bank accounts from today

Almost one in four families across the UK will receive £324 from the government this month as the latest Cost of Living Payments are sent out from today (8 November 2022).

Over 8 million households in England, Wales, Scotland and Northern Ireland who claimed qualifying means-tested benefits during the eligibility period will be automatically paid £324 this month, as part of £1,200 worth of direct help for households.

over 8 million benefit claimants to receive £324 this month as part of Cost of Living support
DWP claimants will receive their second Cost of Living payment by 23 November 2022, and eligible tax credit claimants, on no other means-tested benefits, will receive it between 23 and 30 November 2022
payments will automatically be made to everyone eligible, with no need for anyone to apply

The payments, starting today from the Department for Work and Pensions, are made directly into eligible recipients’ bank accounts, with no need for people to apply or do anything to receive it.

The payment reference on DWP recipients’ bank accounts will be their national insurance number, followed by “DWP COL”. For HMRC recipients the payment reference will be “HMRC COLS”.

Work and Pensions Secretary, Mel Stride said: “We understand that people are struggling and that is why we’ve consistently acted to ensure millions of low-income families are supported. We will continue to act with compassion as we navigate challenging global economic circumstances.

“As part of a wider £37 billion package of support, this latest £324 payment will help the most vulnerable people in our society who are worrying about their finances through the winter months.”

The UK government’s £1,200 support package contains £400 for energy bills that is being paid in monthly instalments to all domestic energy customers between now and March 2023. It also includes a £150 Council Tax rebate for 85% of all UK households and the previous £326 Cost of Living Payment made by DWP in July and by HMRC in September.

On top of this, nearly one in ten people received the £150 disability payment in September, and a £300 addition to Winter Fuel Payments will go to over eight million pensioner households over the winter.

Chancellor of the Exchequer, Jeremy Hunt added: “Prices are rising across the world as we manage the aftershock of COVID-19 and Putin’s invasion of Ukraine. We recognise that families back home are struggling, which is why we’ve taken decisive action to hold down energy bills this winter, and provided hundreds of pounds of cash support for each vulnerable household.

“As part of that support, over 8 million vulnerable households – almost a quarter of families in the UK – will automatically receive a second cost of living payment worth £324 in their bank account from today.

“And while we can’t completely protect people from rising prices, my priority at the upcoming Autumn Statement will be to protect the poorest in society as we take the tough decisions necessary to fix our public finances.”

Those eligible to receive the second cost of living payment from today include people on:

Universal Credit
Income-based Jobseekers Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Income Support
Pension Credit

To be eligible, claimants must have been claiming and entitled to a payment between 26 August and 25 September 2022, with the exception of pensioner households, who may be able to have a new Pension Credit claim backdated.

They have until 18 December 2022 to submit a valid claim for Pension Credit, which could entitle them to the £324 Cost of Living payment. Anyone can check their eligibility for Pension Credit using the online calculator or by calling the freephone claim line, on: 0800 99 1234.

Even if you are not on a qualifying DWP benefit you may still be eligible for the £324 payment, as HMRC are also making payments to over a million people who receive Working Tax Credit or Child Tax Credit and no other eligible benefits. These will be paid between 23 and 30 November 2022 and customers do not need to contact the government or apply for the payment at any stage

The £324 payment and the overall £1,200 package come on top of wide-ranging government support with the cost of living this winter, including an extension to the Household Support Fund, which is providing an extra £421 million between October and March to help vulnerable people with the essentials.

As well as this, the Energy Price Guarantee is ensuring people across the country pay significantly less for their energy bills, with a typical household saving around £700 this winter.

Tenants urged to give their views in housing rent consultation

The City of Edinburgh Council is encouraging its housing tenants to take part in a housing rent consultation. This annual consultation helps influence how the Council spends the money it raises from rental income.

The cost-of-living crisis is also impacting on our costs to run housing services. It is now more expensive to ensure our Council homes meet statutory energy efficiency standards and to build new affordable homes.

Over the next eight weeks we’re seeking tenants’ views on their priorities on how we spend the rent money we collect, what their views are on rent increases, and the financial challenges they face.

We recognise that this year will be particularly challenging for all residents with rising inflation, spiralling prices, and the wider cost-of-living crisis.

However, costs of providing landlord and housing services are increasing, and tenants previously told us they want us to invest in homes to make them more energy efficient and that they need more affordable homes. We have frozen rents for two years, now we need to know what tenants think about what we do next year.

The Scottish Government has recently announced that council rents will remain frozen across Scotland until at least March 2023. At this stage it is unclear whether this will be extended beyond the spring.

Depending on the outcome of this we will consider options for a rent increase in 2023-24. However, any change in rents must take into consideration tenant’s views and input.

We would use any increase in rent to invest in homes to make them more energy efficient and help tenants save money, as well as improving the landlord service that we provide.

We are looking forward to hearing from our tenants on housing and how the Council can further support them through the cost-of-living crisis.

The consultation closes on 23 December 2022.

Make your voice heard by taking part in the consultation.

Councillor Jane Meagher, Housing, Homelessness and Fair Work Convener, said: “Tenants and their views are at the heart of our housing priorities and goals. With the current cost-of living-crisis and rising economic uncertainty, it is more important than ever that our tenants have a say in how the Council goes forward with housing.

“I hope that this year’s consultation will allow the Council an informative and insightful view into how tenants would like rental income spent.

“We want to make sure rents are affordable for tenants whilst also being able to sustainably invest in the standard and quality of council homes for the future.

“I would urge all council tenants to participate in the consultation and make their voices heard.”

Emergency Budget Review published

Additional funding to help those most in need

Measures announced today will provide further help to those most impacted by the cost of living crisis while tackling budget pressures caused by rising inflation and economic uncertainty.

The Emergency Budget Review (EBR) for 2022-23 identifies funding of around £35 million for a range of initiatives to support people with the increased cost of living, including doubling the Fuel Insecurity Fund, doubling the Scottish Child Bridging Payment to £260 and a new £1.4 million Island Cost Crisis Emergency Fund to help island households manage higher energy costs.

Significant investment in public sector pay deals – delivering higher increases in pay for low earners – is also designed to help families and individuals deal with the cost of living crisis.

Other measures include:

confirming funds to local authorities to support Discretionary Housing Payments
establishing a Joint Taskforce with business, COSLA, local authorities and agencies to consider the differing impacts of regulation on business
extending energy advice to businesses by investing £300,000 to expand the services of Business Energy Scotland, while doubling the value of the SME energy efficiency Loan and Cash Back Scheme for energy efficiency to £20,000
new payment break options to help protect those who have agreed to repay debt through the Debt Arrangement Scheme but face unexpected increases in the cost of living

Additional savings of £615 million have been identified to enable enhanced public sector pay offers to be made while maintaining a route to complying with Ministers’ responsibility to balance the budget. They follow savings of £560 million announced on 7 September.

Deputy First Minister John Swinney said: “There has never been a time of greater pressure on the public finances.

“The Scottish Government’s budget today is worth £1.7 billion less than when it was published last December. At the same time, demand for government support and intervention is understandably increasing while we continue to try to fund increased public sector pay claims, particularly for those on lowest incomes.

“These savings are not ones we would wish to make, but in the absence of additional funding from the UK Government, we are left with no alternative.

“We must balance the books while prioritising funding to help families, back business, provide fair pay awards and to protect the delivery of public services. This Emergency Budget Review delivers on these objectives.”

Responding to the Ministerial Statement: Emergency Budget Review, STUC General Secretary Roz Foyer said: “No-one should underestimate the very serious economic situation in which the Scottish Government finds itself.

“By far the greatest blame lies at the door of the calamitous Tory Government at Westminster. The STUC supports the Scottish Government’s call for the UK Chancellor to get real about the need to increase, not attack, public sector funding, for the full protection of benefits and the mitigation of fuel poverty through windfall taxes.

“However, the Scottish Government’s previous failures are coming back to bite us now. Earlier this year it could have increased taxes on the better off and reformed the flawed Small Business Bonus Scheme, but it chose not to.

“Our members have no choice but to continue to take action to protect workers from the worst of the cost-of-living crisis.

“The Scottish Government’s next budget is critical. Our People’s Plan for Action, supported by the Poverty Alliance and civil society groups across Scotland, will continue to build pressure on the Government to use its tax powers in 2023 to support decent pay, reduce economic inequality and protect our vital public services.”

The Deputy First Minister’s Emergency Budget Review statement