Tag: cost of living crisis

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.

Aberlour Children’s Charity seeks support for families amid cost-of-living crisis

·        Aberlour Children’s Charity is launching a national ‘Poverty Relief Appeal’ to secure donations for its Urgent Assistance Fund 

·        The Fund, which provides emergency funding to families for essentials, is in desperate need of money to support a rise in applicants due to the cost-of-living crisis  

Aberlour Children’s Charity, one of Scotland’s largest children’s charities, is launching a national fundraising drive, to secure critical donations for its Urgent Assistance Fund which is set to run out by Christmas.

The Fund provides poverty relief to families in crisis, where they receive emergency grants, often within 48 hours, to help pay for essentials such as food, clothing, bedding, heating and lighting costs.

In the last year, the Fund has donated over £33k to people in Edinburgh and the Lothians helping almost 500 people in critical conditions.

This winter will see the highest cost of living in decades for Scots, and in many communities around the country, children are going without the basics required to feed, clothe, and heat them.

The latest research suggests that almost half of families who apply to Aberlour’s Urgent Assistance Fund do not know where their next meal is coming from, and a fifth of families who apply don’t have beds for their children.

Worryingly, around 50% of those who apply do not have the funds to purchase their children new clothing adequate for Scottish weather, which could have serious health implications as the colder months set in.

One support worker in Edinburgh said: “The cost of living crisis is a real issue. Everything has gone up in price for families who were already living in poverty. I am seeing children that have unclean bedding or sometimes no bedding. Some have broken beds. Some have no storage or anywhere to keep their clothes, because of the terrible housing problems in Edinburgh right now.

“Families have only just got enough money to pay rent and by the time they’ve paid their bills, especially with the rising costs and buying food, they don’t have money for anything else. So, if their kids need winter clothes, they have no way of buying them warm stuff.

“Families are so grateful for the financial support. If I tell them I’ve had an email through from Aberlour, so they will have money soon, they are so relieved.”

This year Aberlour has provided grants via the Urgent Assistance Fund to more than 6,986 people in Scotland, including 4,275 children, totalling over £580k. It is a vital lifetime to thousands of people for items which many of us take for granted.

The charity’s Poverty Relief Appeal launches this week across national TV, radio, press and digital. Those who can are being asked to donate to support families trapped in poverty and struggling to survive the toughest conditions faced by Scots in many years.

SallyAnn Kelly OBE, Chief Executive at Aberlour Children’s Charity, said: “This winter, as we continue to face the biggest cost of living crisis in recent memory, more and more families are turning to the charity for help. Because of this soaring demand, the emergency fund is going to run out of money by Christmas when it is needed most.  

“Too many children are going without and for many families it is a constant worry of where the next meal is coming from, and if there’ll be enough money to heat their home.  

“Aberlour’s Urgent Assistance Fund is a lifeline to disadvantaged families all over Scotland and every penny of cash donated goes directly to those who need it most. If you are in a position to donate – however big or small the amount – we would be infinitely grateful for your support.” 

Aberlour’s Urgent Assistance Fund is designed to provide immediate relief to families with children (aged 21 and under) who are suffering extreme hardship. It is a critical lifeline with money paid straight to families who apply via a sponsor (health professional, social worker, teacher, third sector organisation, clergy or other professional) to ensure that the lights stay on, homes are warm, and their children have the essentials they need. 

Donations to Aberlour’s Urgent Assistance Fund via: 

www.aberlour.org.uk/povertyrelief 

Information on the Urgent Assistance Fund: 

www.aberlour.org.uk/get-help/urgent-assistance-fund

Chancellor urged to prioritise public services over tax cuts

DFM calls for Autumn Statement funding to support key missions

The Chancellor’s Autumn Statement must deliver more funding for public services, net zero and cost of living support instead of cutting taxes, Deputy First Minister Shona Robison has urged.

Ahead of the Scottish Budget next month, the Deputy First Minister called for the Chancellor to provide a funding settlement to support the Scottish Government’s key missions of equality, opportunity and community.

Ms Robison, who is also Finance Secretary, is urging the Chancellor to:

  • increase the Scottish Government’s capital budget in line with inflation to help deliver vital infrastructure
  • deliver additional funding across the UK to fund public services and fair public sector pay awards
  • commit to increasing working-age benefits in line with inflation next year
  • legislate for an essentials guarantee giving basic necessities to those who need them most
  • prioritise investment in net zero, including funding for offshore wind projects in Scotland

The Deputy First Minister said: “The UK faces a combination of low growth and high interest rates. The Autumn Statement must learn the lessons from last year’s ‘mini budget’ – it must not compound these problems with ill-timed tax breaks which would place even greater pressure on the public finances.

“The Scottish Government is using the levers available to us to support people through this difficult time. However, it is important that the UK Government uses its full range of reserved powers to address these challenges. With many families continuing to struggle with the cost of living, the Chancellor must not use this statement to cut benefits.

“The Autumn Statement provides an important opportunity for the UK Government to support us to deliver the investment and services that Scotland needs, to demonstrate its commitment to net zero, and to help people and businesses with the economic challenges they face.”

Aye, I’m sure Jeremy Hunt will be hanging on to her every word! -Ed.

Charity reveals 1 in 7 parents/carers won’t be buying presents for their children this Christmas

Research from national charity Family Action reveals the stark reality many families face this Christmas

Families across the UK are facing increasing financial hardship and new research from Family Action reveals that 1 in 7 parents/carers surveyed, said they won’t be able to afford to buy presents for their children this Christmas due to financial constraints.

In addition, a quarter of parents/carers surveyed said they won’t be able to afford to buy presents for their children’s grandparents, and almost a quarter of parents / carers surveyed said they won’t be able to afford to buy presents for their partner this Christmas, due to financial constraints.

  • 1 in 7 (14%) parents/carers surveyed said they won’t be able to afford to buy presents for their children this Christmas due to financial constraints.
  • A quarter (25%) of parents/carers surveyed said they won’t be able to afford to buy presents for their parents (their child/children’s grandparents), and almost a quarter (24%) of parents/carers surveyed said they won’t be able to afford to buy presents for their partner this Christmas due to financial constraints.
  • 1 in 5 (20%) parents/carers surveyed said they will go without heating their house this Christmas.
  • Over half (54%) of parents/carers surveyed agree* that Christmas is going to negatively affect their mental health this year because of worry about finances, with just over a third (34%) of parents/carers surveyed agree* that they will need to seek external support with finances.
  • Almost half of parents/carers (47%) surveyed agree* they expect to be in debt after Christmas 2023, while almost 3 in 10 (29%) parents/carers surveyed agree* they are still paying off debt from spending on Christmas 2022.

Family Action is launching its annual ‘Make Theirs Magic’ campaign to support families facing hard times this Christmas.

The charity provides emotional and practical support to over 60,000 families across the country and this Christmas it is looking once again to distribute thousands of toys to families through the Family Action Christmas Toy Appeal.

Mum, Hayley, said: “I’ve been handling Christmas a bit differently this year. I’ve even bought some presents in the January sales. I’ve got no idea how Christmas is going to look at the moment.

“I’ve cut back, but I don’t know where we’ll find the money and I don’t think we’re seeing family at Christmas. It’s still a special day, it’s a home day for us.”

David Holmes CBE, Chief Executive of Family Action, said: “Every family deserves comfort and joy at Christmas, but with the high costs of food and utilities, many will find their holiday season stressful and difficult.

“We work with thousands of families across the country, and from the research findings and feedback from our frontline staff, we know only too well the challenges families are facing.

“It is a stark reality that one in seven parents won’t be able to afford gifts for their children this Christmas, and that for over half of parents/carers, they expect that their mental health and wellbeing will be negatively affected, due to the worry of financial constraints.”

Mum, Cathryne, said: “At the moment I can’t work so I could never afford the gifts my children were given by people donating to the Toy Appeal.

“It takes away the guilt I feel as no parent wants to be in that position.”

David Holmes CBE adds: “It does seem, this year, that Christmas magic is in short supply, but this is where Family Action comes in. This Christmas we’re offering a sleigh load of practical and emotional support to families through our FOOD clubs, financial grants, FamilyLine, and our Christmas Toy Appeal.

“By supporting our ‘Make Theirs Magic’ campaign, people can help with a special gift that could bring Christmas cheer to a child and their family. Together, we can keep the magic of Christmas alive. Thank you.”  

Visit Family Action Make Theirs Magic and keep the magic of Christmas alive by donating to Family Action.

Keep a child cosy and dry this winter

EDINBURGH SCHOOL UNIFORM BANK WINTER APPEAL

Please keep a child cosy & dry this winter!

Could you buy a new coat, socks, leggings or joggers for a local youngster?

Here’s how:

👉 Pop items into a drop-off point (locations are listed at https://bit.ly/3opKjov) We also welcome pre-loved coats in good-as-new condition at our drop-off points.

👉 Shop our Amazon wishlist to have something sent directly to us (https://www.amazon.co.uk/hz/wishlist/ls/1YJ1ICHV5STC…).

👉 Donate funds at https://edinburghuniform.org/donate/

Warm things are needed for all ages from 6 upwards.

📣Please share!

Changeworks energy advice at PCHP

FRIDAY 10th NOVEMBER from 9am – 11am

at PILTON COMMUNITY HEALTH PROJECT

This Friday, 10th of November, between 9:00 and 11:00 am, come to Pilton Community Health Project for much needed #energyadvice.

Changeworks will be here providing expert advice on how to #savemoney this winter while staying warm and cosy.

Increased support offered to Scottish families in relationship crisis across the country

Latest figures from Relationships Scotland show continued fallout from pandemic and cost of living crisis are having a negative impact on family life

Support for Scottish families seeking help to deal with relationship difficulties and family breakdown has increased by almost 40% in the last year, according to Relationships Scotland.

Relationships Scotland, the largest provider of relationship support in the country, has published its Annual Review highlighting the increase in support being offered to couples with relationship problems.

The figures for 2022/23 show that across the charity’s network of 21 member services, 86,000 hours of direct support were delivered, increasing from 62,000 the previous year. The figures also show the network provided support to over 14,400 people across the country, up from 13,850 in 2021/22.

Stuart Valentine, Chief Executive of Relationships Scotland said: “There is no doubt the pandemic and the cost of living crisis have put a strain on families and relationships, and these figures are a stark reminder of how acute this strain is.

“This is a significant increase in hours of support across the whole country, and while it paints a worrying picture of the pressures being felt across the nation, we are encouraged that people feel they have somewhere to turn, and are seeking help to deal with these issues.”

The Relationships Scotland network has a strong focus on early intervention and prevention, working with families as early as possible to support them to look at the issues they are facing and helping them avoid problems spiralling. The work of the 21 member services across the country is supported by around 900 people, including over 400 volunteers.

Stuart Valentine added: “The importance of positive and resilient relationships can not be underestimated, with the damage caused by relationship breakdown estimated to cost the Scottish economy around £3.5b each year.”

More support for families with cost of living ahead of winter

Millions of people across the country are set to receive significant cost of living support ahead of winter, with the second instalment of the cost-of-living payment – worth £900 in total – landing directly in bank accounts from today

  • Significant cost of living support to come into effect from today as millions of households set to receive second £300 payment
  • Comes as £2 bus fare cap in England extended with millions of people also set to benefit from lower travel costs
  • Prime Minister continues to support families with the cost of living ahead of winter as we are on track to halve inflation

Millions of people across the country are set to receive significant cost of living support ahead of winter, with the government freezing bus fares in England and the second cost-of-living payment – worth £900 in total – landing directly in bank accounts from today.

The bus fare cap had been due to rise to £2.50 but the government is keeping the fares down at £2 until the end of next year to help millions of people make significant savings on their travel costs. The fare cap has helped cut bus fares in England outside London by 7.4% between June 2022 and June 2023, with even bigger savings in rural areas where fares have dropped by almost 11%. 

This government says the extension is only possible due to the redirected HS2 funding as part of the Network North plan and takes the total government investment to keep bus fares down to nearly £600 million – with over 140 operators signing up to continue offering the cap across more than 5,000 routes.

Over 8 million households across the UK will also receive the second of up to three payments from today, totalling up to £900 through 2023/24 with a further cost of living payment due to be made to eligible households by next Spring.

These payments are entirely tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards. Those who are eligible will be paid automatically and do not need to apply for the payment or do anything to receive it.

Prime Minister Rishi Sunak said: “I know that winter can be a particularly challenging period for many families across the country. That’s why we have put in place a package of immediate support for vulnerable households over the coming months. 

“We are lowering travel costs through the bus fare cap, which we are able to do because of our long-term decision to cancel phase 2 of HS2. We are also providing an extra top up to help pay energy bills and direct payments to cover the cost of day-to-day essentials. 

“But the best way to put more money in the pockets of hardworking people is to focus on the long-term decisions that will help not only them, but future generations too. We’re on track to halve inflation which will help people’s wages go further, and we’re growing the economy to create better paid jobs and opportunities across the country.”

The government is also committed to helping vulnerable households across the UK with their energy bills over winter. Winter Fuel Payments – boosted again this year by an additional £300 per household Pensioner Cost of Living payment – will provide pensioners with up to £600 to help with heating costs over the colder months. 

On top of this, nearly three million low-income households are also eligible for a £150 rebate on their winter electricity bills through the Warm Home Discount. From tomorrow (1st November) Cold Weather Payments will also come into effect to provide eligible households £25 extra a week when the temperature is zero or below for more than seven days across the UK.

Transport Secretary Mark Harper said: “Buses are the most popular form of public transport and help people across the country get to work, attend medical appointments, and see loved ones – that’s why we are extending the ‘Get Around for £2’ scheme all the way to 31 December 2024.

“Extending the £2 bus fare cap has only been possible with the redirected HS2 funding secured by this Government making the right long-term decisions for a brighter future, delivering immediate benefits and helping people save money.” 

Mel Stride, Secretary of State for Work and Pensions, said: “Tackling inflation is the best way to boost people’s incomes, but as we work to halve it, we are protecting the most vulnerable households from high prices with this latest Cost of Living payment.

“Thousands of Work Coaches based in Jobcentres across the country are on hand to help people find work or enhance their skills, and I encourage anyone wanting to strengthen their finances and unleash the benefits of work to contact their local Jobcentre to see what help is available.”

Taken together, these measures build on the significant cost of living support already provided to eligible households throughout last year – now worth an average of £3,300 per household over this year and last. 

The government says it has also gone further by:

  • Increasing benefits in line with inflation, meaning more than 10 million working age families will see an average increase of around £600.
  • Maintaining the Triple Lock earlier this year to give around 12 million pensioners the largest ever cash increase to the State Pension.
  • Extending the Household Support Fund for another year in England to help families with essential costs with £1 billion of extra funding. 
  • Increasing the National Living Wage by its largest ever cash amount for 2 million workers – worth over £1,600 to the annual earnings of a full-time worker – and committing to increase it to over £11 an hour from April 2024. 
  • Cutting fuel duty by 5 pence and freezing the increase, worth £100 to the average driver this year.
  • Covering up to 85% of childcare costs for working households on Universal Credit, up from 70% under the legacy system – currently worth over £19,500-a-year for families with two or more children.

The government says it has ‘a strong record on supporting the most vulnerable and lifting households out of poverty’, with the latest data showing there were nearly 1 million fewer workless households since 2010 and 1.7 million fewer people in absolute poverty after housing costs over the last decade. 

They maintain the best route out of poverty is through work, ‘which is why we’ve introduced a package of measures worth £3.5 billion to break down the barriers for people to find jobs and fulfil their potential. This includes our flagship Universal Support scheme which will get thousands more people into jobs with a personal adviser providing wraparound support for up to a year while they find their feet.

‘We encourage people in need of additional support over winter to check their eligibility through our Help for Households website for the various cost of living schemes that are place.’

Warm Up for Winter event

4th NOVEMBER from 1 – 4pm at McDONALD ROAD LIBRARY

Don’t miss out on our Warm Up for Winter event where energy-saving hacks and money-saving tips will be provided.

We will share advice on housing and benefits too.

Best part? It’s a totally free event, and everyone’s invited!

📅 Save the Date: November 4, 2023

🕐Time: 1:00 PM – 4:00 PM

📍 Where: McDonald Library, The Nelson Hall

🏠 Address: 2-8 McDonald Rd, Edinburgh EH7 4LU

This is a joint event delivered by Edinburgh and Lothians Regional Equality Council (ELREC), The Welcoming Edinburgh, Home Energy Scotland, Changeworks, Citizens Advice Scotland, VoiceAbility and Right There

See you there!