Tag: cost of living crisis

Ofgem: Welcome fall in the price cap but high debt levels remain

Energy regulator Ofgem has today (Friday 23 February, 2024) announced a significant reduction of the energy price cap for the second quarter of 2024. 

The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 12.3% on the previous quarter from 1 April to 30 June 2024. For an average household paying by direct debit for dual fuel this equates to £1,690, a drop of £238 over the course of a year – saving around £20 a month.  

This will see energy prices reach their lowest level since Russia’s invasion of the Ukraine in February 2022 caused a further spike in an already turbulent wholesale energy market, driving up costs for suppliers and ultimately customers. 

However, despite reaching this welcome milestone, Ofgem recognises that the cost of living remains high and many customers continue to struggle with their bills as standing charges rise and energy debt reaches a record figure of £3.1 billion. 

Therefore, today Ofgem is also announcing: 

  • Confirmation of the levelisation of standing charges to remove the ‘PPM premium’ previously incurred by prepayment customers.  
  • A decision to allow a temporary adjustment to the price cap to address supplier costs related to increased levels of bad debt. 
  • A decision to extend the ban on acquisition-only tariffs (BAT) for up to another 12 months. 
  • Confirmation of the end of the Market Stabilisation Charge (MSC) from April 1. 
  • A decision not to change wholesale cost allowances following a review conducted in late 2023. 

Jonathan Brearley, CEO of Ofgem, said: “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers. 

“That’s why we are levelising standing charges to end the inequity of people with prepayment meters, many of whom are vulnerable and struggling, being charged more up-front for their energy than other customers.  

“We also need to address the risk posed by stubbornly high levels of debt in the system, so we must introduce a temporary payment to help prevent an unsustainable situation leading to higher bills in the future. We’llbe stepping back to look at issues surrounding debt and affordability across market for struggling consumers, which we’ll be announcing soon. 

“These steps highlight the limitations of the current system – we can only move costs around – so we welcome news that the Government is opening the conversation on the future of price regulation, seeking views on how standard energy deals can be made more flexible so customers pay less if using electricity when prices are lower. 

“But longer term we need to think about what more can be done for those who simply cannot afford to pay their energy bills even as prices fall. As we return to something closer to normality we have an opportunity to reset and reframe the energy market to make sure it’s ready to protect customers if prices rise again.” 

Affordability remains the most significant issue, as people continue to struggle with bills over the last two years, which has led to record levels of energy debt. 

 

To address this challenge in the short-term, Ofgem will allow a temporary additional payment of £28 per year (equivalent to £2.33 per month) to make sure suppliers have sufficient funds to support customers who are struggling.

This will be added to the bills of customers who pay by direct debit or standard credit and is partly offset by the termination of an allowance worth £11 per year that covered debt costs related to the Covid pandemic.  

Prepayment meter (PPM) customers will not be impacted by the extra charge, reflecting the fact that many do not build up the same level of debt as credit customers because they top up as they go. 

Ofgem also confirmed plans to maintain the equalisation of standing charges across payment methods so that customers are not charged more depending on the payment method they use.

Since October 2022 the so-called ‘PPM premium’ was removed by government support via the Energy Price Guarantee. However, with that support coming to an end on April 1, Ofgem has taken steps to provide a lasting solution, which must be funded by bill payers rather than tax payers, to maintain fairness in the system. 

This means PPM customers will save around £49 per year while direct debit customers will pay £10 per year more. 

Increasing network costs has also contributed to the rise in standing charges – and in anticipation of this we published a call for input in November 2023 and are currently reviewing more than 40,000 responses. 

Today Ofgem is also publishing a decision to extend the ban on acquisition-only tariffs (BAT) for another 12 months, but intends to open a consultation to consider shortening this extension to just six months. 

The BAT was introduced in April 2022 to provide more stability at the height of the energy crisis, removing often risky short-term discounted tariffs intended to attract customers from other suppliers. 

As competition returns to the market, Ofgem is encouraging rising numbers of customers switching with a number of measures, including shortening the time suppliers are given to complete a customer transfer from 15 days to just five. 

Additionally, from 1 April, the Market Stabilisation Charge – introduced in tandem with the BAT – will come to an end, meaning suppliers are no longer required to compensate a new customer’s previous supplier when they switch. 

This influenced the regulator’s decision to temporarily extend the BAT rather than remove both safeguards at the same time, ensuring a phased and responsible return towards normality in the market while preventing a return of the risky behaviours which contributed to the high number of supplier failures during the energy crisis. 

Ofgem is also publishing a decision following its wholesale adjustment review. Following unusually high volatility in wholesale prices between October 2022 and September 2023, the regulator examined whether suppliers experienced differences between wholesale costs and the allowances they were allowed to recover via the price cap. 

However, after careful consideration the regulator has concluded to take no further action as wholesale costs did not systematically differ from allowances. 

Citizens Advice Scotland has responded to today’s announcement by Ofgem, setting the energy price cap at £1,690.

The charity is stressing that even though prices are coming down they are still way too high for many households.

CAS Social Justice spokesperson Matthew Lee said: “Today’s announcement has to be seen in the context of peoples’ incomes and how badly households have been battered by the cost-of-living crisis of the past 18 months.

“Even if prices are coming down they are still way too high for many people to be able to afford, particularly the many who have had to go into debt to cover their energy costs since the price surge in 2022.

“It’s important that we don’t become complacent about the lower cap. The fact is that too many people are still struggling to pay these bills, and more targeted financial support like a social tariff is needed for the most vulnerable households.”

Previous CAS research on energy affordability has found that: 

  • Nearly 3 million people report switching the heating off when it’s cold, wrapping themselves in blankets and extra layers instead.
  • 1.4 million people regularly sit in the dark, with no TV or laptop/tablet on, to save on energy bills.
  • Nearly 3 million people in Scotland have cut back on food as a result of rising energy bills.
  • Tens of thousands of people in Scotland have been forced onto pay as you go energy meters against their will.
  • Over 300,000 people say they are concerned about energy debt.
  • In December the average energy debt for people seeking complex debt advice was £2,307 – up nearly £500 compared to the same time last year.
  • 185,000 people say they have changed their bathing habits to save on hot water – they’re sharing bathwater or showering at work or at the gym.

Help tackling council tax debt

Pilot scheme will see councils and advice services work more closely together

Extra help for people struggling with council tax debt will be on offer in three local authority areas under a pilot scheme. 

The Scottish Government is providing Citizens Advice Scotland with £200,000 funding to better understand the reasons why some people end up in council tax arrears and to work collaboratively with local councils to help reduce and prevent council tax debt in future. 

Citizen’s Advice Bureaux in Renfrewshire, Clackmannanshire and the Scottish Borders will test different ways of working including: 

  • Providing targeted support to individuals facing council tax debt
  • Simplifying the referral processes between councils and advice services
  • Organising mutual training sessions for council and Citizens Advice staff

Housing Minister Paul McLennan visited Roxburgh and Berwickshire Citizen’s Advice Bureau to launch the project.  

Mr McLennan said: “We know many people are struggling in the cost of living crisis and that is why we are targeting resources at those most in need.

“Council tax debt is a significant issue, and one that particularly affects the most vulnerable. The three Bureaux involved in these pilots have established relationships with their local authorities. This funding will help build on those connections to help individuals tackle problem debt and also provide valuable learning on how public sector debt can best be managed. 

“Advice services are critical to Scotland’s communities, supporting people to understand their rights and entitlements, maximising incomes and helping to reduce poverty. This year we will invest more than £12.5 million in a range of advice services providing free income maximisation, welfare and debt advice.” 

Myles Fitt, Financial Health Strategic Lead at Citizens Advice Scotland said: “Council tax debt is the single biggest debt issue that clients bring to the CAB Service each year. The cost-of-living crisis is only worsening this problem, so we welcome the opportunity this funding provides to make a difference to peoples’ lives and financial well-being.

“Through working in partnership with councils, the three bureaux involved in this pilot will bring their deep insight into the factors and barriers that lie behind council tax debt to develop joint solutions that will help those in arrears now and in the future.”

People on low incomes urged to check if they can get £150 energy bill discount

Eligible low income households urged to make sure they get £150 in Warm Home Discount before 29 February

  • Low income households who qualify for the Warm Home Discount are urged to make sure they get the £150 discount.
  • Most of the 3 million households who qualify will automatically receive this energy bill support.
  • Households who need to confirm their details must do so by the end of February.

People on low incomes could benefit from a £150 rebate on their energy bills – and are being urged to act now where they need to, so they can get the support before this year’s scheme closes. 

The help is available to over 3 million households across Great Britain that are most at risk of fuel poverty, with many receiving the discount automatically. However, some customers in England and Wales have been sent a letter asking them to confirm their details by calling the Warm Home Discount Helpline so they can check their eligibility and get the rebate.  

To mark Big Energy Saving Week, Minister for Affordability and Skills Amanda Solloway is today urging any of these households who need to provide more information to call the helpline by 29 February and get the support they are entitled to.  

The scheme forms part of measures to keep costs down for families and put more money in their pockets. It targets support to protect those most at risk of fuel poverty this winter, following a significant drop in energy prices since their peak last year and the Government delivering on its pledge to halve inflation – which is now at a two-year low of 3.9%.  

Tax cuts announced at the start of the year will also support 27 million people across the UK, meaning a household with two average earners will save nearly £1,000 a year.

Minister for Affordability and Skills Amanda Solloway said: “We will always act to support the most vulnerable – and this means making sure those most in need are getting the right support.  

“Today, I am urging people on low incomes who have been notified about the Warm Home Discount to make sure they act now to get £150 off their energy bill.  

“Please check your letter and call our helpline before the end of February if you need to provide more information.”

The UK government’s Warm Home Discount offers targeted energy bill support for those most in need. This includes low income pensioners and households in England and Wales with high energy costs. 

These customers received a letter at the end of last year explaining the discount and instructions on any action they may need to take.  

For the vast majority of these customers, the discount is automatically applied to bills between October 2023 and March 2024, or is available as a top-up voucher for those with a prepayment meter. 

However, some people in England and Wales who received a letter and could qualify for the support have been asked ring the government helpline number provided in their letter to confirm their details.

Customers can also find out more on the government’s Warm Home Discount gov.uk page and use the online eligibility checker to see if they qualify, or call the general Warm Home Discount helpline on 0800 030 9322. 

In Scotland, customers on low incomes who have not received a letter may still be eligible and should apply via a different route, by contacting their energy supplier as soon as possible.   

The support comes on top of wider action to protect vulnerable households, including a £900 payment for those on means-tested benefits, £300 for pensioner households and an extra £150 available for those on disability benefits.  

The Government has also invested over £2 billion into the Household Support Fund over the last two years, increased the Local Housing Allowance Rate so £1.6 million private renters on Housing Benefit or Universal Credit gain an average of nearly £800 a year and £600 in tax-free cash for pensioner households to help with energy bills through Winter Fuel Payments.

Cold Weather Payments have also been triggered to help households receiving certain benefits to stay warm this winter. The scheme – which runs until March 2024 – provides low-income households with an automatic payment of £25 following periods of cold weather.  

Anyone can access advice on how to reduce energy costs and heat their home for less via the government’s Help for Households website. This includes energy saving tips as part of the It All Adds Up campaign, which helped British households an estimated £120 million on their energy bills last winter.

More information about the Warm Home Discount is available here and households can check if they are eligible for the support via the GOV.UK online eligibility checker.

TUC: UK families suffering “worst decline” in living standards in the G7

UK is only country in G7 where household budgets have not recovered to pre-pandemic levels

  • Families would be £750 a year better off if real disposable income had grown in line with other leading economies 
  • Working people are being made poorer by Conservative failure, union body says 

The UK is suffering the worst decline in living standards of any G7 country – according to new TUC analysis published this week.

The analysis shows the UK is only G7 economy where real household disposable income per head hasn’t recovered to its pre-pandemic levels: 

Real household disposable incomes in the UK were 1.2% lower in the second quarter of 2023 than at the end of 2019. 

But over the same period they grew by 3.5%, on average, across the G7. 

The TUC estimates that if real disposable income in the UK had risen in line with the G7 average UK families would be £750 a year better off. 

More pain ahead 

The union body warned that the contraction in UK household budgets is going to get worse – despite falling inflation. 

The Office for Budget Responsibility (OBR) forecasts that real house disposable income per head in Britain will fall by an additional 3.4% by the end of the first quarter of 2024. 

And according to the same forecasts household budgets won’t even recover to their pre-pandemic levels until the end of 2026. 

The OBR said in November that UK households are suffering the worst period for living standards since modern records began in the 1950s. 

Households in debt 

The TUC says the Conservatives’ failure to grow the economy and deliver healthy wage growth has pushed many households further into debt. 

Analysis published by the union body at the end of December revealed that unsecured debt (credit cards, loans, hire purchase agreements) is set to rise by £1,400 per household, in real terms, this year. 

The TUC says working people have been left brutally exposed to rising costs after years of pay stagnation. 

UK workers are on course for two decades of lost living standards with real wages not forecast to recover to their 2008 level until 2028. 

The TUC estimates that the average worker has lost £14,800 since 2008 as a result of their pay not keeping up with pre-global financial crisis real wage trends. 

TUC General Secretary Paul Nowak said: “The UK is the only G7 nation where living standards are worse than before the pandemic. 

“While families in other countries have seen their incomes recover – household budgets here continue to shrink. 

“This is a damning indictment on the Conservatives’ economic record.  

“Their failure to deliver decent growth and living standards over the last 13 years has left millions exposed to skyrocketing bills – and is pushing many deeper into debt. 

“We can’t go on like this. Britain cannot afford the Tories for a day longer.” 

Growth in real disposable household income in the G7 

Country change 2019Q4 to 2023Q2 
United Kingdom -1.2 
Italy 0.1 
Germany 0.2 
Japan * 0.5 
France 2.4 
Canada 3.0 
G7 3.5 
United States 6.0 
source: OECD; * Japan to 2022Q1 

– The analysis is based on OECD figures for real household disposable income per head, which extend to 2023Q2 (except for Japan, which go to 2022Q1). Looking forward, UK figures are based on Office for Budget Responsibility projections in the November 2023 Economic and Fiscal Outlook. As with the ONS outturns and OBR projections, cash figures are in 2019 prices. 

– The OBR measure living standards as real household disposable income (RDHI) per person. 

Consumer spending on holidays and  socialising on the rise 

• Lloyds Bank data unearths how different generations and regions spend on  making memories 

• Non-essential spending on holidays, restaurants and recreation rising

• Non-essential spending increase is slowest in London  

• Gen Z holiday spending growing quicker than Millennials and Generation X 

Non-essential spending in the UK is on the rise despite the cost-of-living crisis,  according to data from Lloyds Bank. 

Every region in the UK, including Scotland, Wales and Northern Ireland, is spending  more on non-essentials like holidays, restaurants and recreational activities but  London is the slowest-growing region for this type of spending. 

Lloyds Bank has revealed the data following the launch of its new credit card, the World Elite Mastercard®, which enables customers to earn cashback on every card purchase  made, alongside enjoying a range of travel benefits. 

With millions of customers across the UK, Lloyds Bank touches nearly every  community and household in the country. The analysis, based on card spending of  the bank’s customers, provides live insight into the state of the nation. 

Non-essential purchases – like holidays and restaurant spending – have been in  positive growth, year-on-year, since May 2021.  In 2023 alone, year-on-year non-essential spending has grown more than 3% every single month, peaking at a 10% increase in January.  

The data indicates the trend is largely being driven by wanderlust – particularly  amongst the over 65s, who have increased spending in this category by 21% in  October. Millennials (people aged 25 to 34) meanwhile, are displaying the slowest  growth among generational holiday spenders year-on-year, up 11.8%, while Gen Z  consumers (aged 18 to 24) have seen holiday spend grow 16.9% over the last  year. 

Taking a regional view, consumers in Wales are leading the charge in holiday spending – up by more than a fifth compared to last year (21.6%), while Scottish  holidaymakers and those in the South West have increased travel card spending  by 19.5% and 19.1% respectively.  

Spending from people living in London shows the slowest growth at 12.5%, with  those in the North West spending 16.5% more year-on-year.

Overall, year-on-year holiday spending is up 17.1%, restaurant spending is up 6.2% and recreational  spending is up 3.3%. 

Looking at regional growth around non-essential spending more broadly, you see London showing the  slowest growth – up just 1.8% compared to the previous year. 

Meanwhile, consumers in Yorkshire and the Humber, which is the fastest-growing region, spent more  than 6% on non-essentials when compared with the previous year and Scottish consumers also spent over 5% more. 

The data also shows that spending on restaurants and going out to socialise account for the biggest non essential spending growth across all generations and all regions across the UK in October. 

Marc Lien, Credit Cards Managing Director at Lloyds Bank, said: “Despite understandable concerns  around the cost-of-living crisis, people still want to socialise and have a holiday to look forward to.

“We’ve  come through a challenging few years, and it’s positive to see that consumer spending is on the rise.  

“After listening to our customers it’s clear that spenders up and down the country want more from their  credit and debit card providers, and this is more important than ever at times like these – that’s exactly  why we launched the Lloyds Bank World Elite Mastercard®, to provide better, more easily accessible rewards. 

“The new Lloyds Bank World Elite Mastercard® offers cashback on every card purchase – no matter how big or small – and great benefits for travellers, including the luxury of skipping airport security queues and  access to over one thousand airport lounges worldwide.” 

Customers using the World Elite Mastercard® will earn 0.5% cashback on each card purchase up to and including £15,000. When total card spending reaches over £15,000, each card purchase will earn 1% cashback, paid into the account each month. 

World Elite Mastercard® customers will also receive benefits which add a touch of luxury when travelling: 

o Access to over 1,300 airport lounges, including lounges at London Heathrow, Edinburgh  International, Orlando International, Dubai International and many more, through Priority Pass. (Owned and operated by Collinson.) 

o Cardholders will be able to skip airport security queues and upgrade their airport security  experience at participating airports, powered by DragonPass. 

o Direct access to Mastercard’s priceless.com experiences and content in the UK and around the  world. 

World Elite Mastercard® also provides one additional cardholder with all the card benefits at no extra cost to the initial £15 per month.

Cashback earned by the additional cardholder will be added to the main  cardholder’s running total, and will be included in the monthly cashback payment made to the account. 

The main cardholder will be able to view or manage their World Elite Mastercard® and travel benefits  through online banking and the mobile app.

Age Scotland produce new Help with the Cost of Living Guide

AGE Scotland has produced a new guide to support older people through the #costofliving crisis.

It’s packed with advice on energy bills, tips on how to shop smart and eat well when food prices bite, cost-effective recipes, and a directory on where to go for help:

The cost of living crisis is forcing many older people to make incredibly difficult financial choices between powering and heating their homes and the food they can afford to buy.

Age Scotland’s helpline is hearing from an increasing number of older people who are finding it near impossible to pay their energy bills, having cut down on all but the essentials, and are now at risk of falling into unmanageable debt as a result.

Their Big Survey 2023 really highlights the stark reality and toll the cost of living crisis has taken on older people’s financial and physical wellbeing.

Age Scotland has pulled together this guide to support older people as we believe nobody should face the ongoing cost of living crisis alone.

It’s packed with advice on energy bills, tips on how to shop smart and eat well when food prices bite, recipes from top Scottish chefs, including Tom Kitchin and Tony Singh, and a directory on where to go for help.

We hope you find it useful. For further help and advice or to get a benefits check please call our free Helpline on 0800 12 44 222.

cost-of-living-guide-v-onlineDownload

Aldi donates over 25,000 meals to Edinburgh and Lothians charities over Christmas and New Year

Aldi donates surplus food from all its stores to local charities and foodbanks when stores close early on Christmas Eve. Aldi’s staff L-R Emily Sutton, Carla Louise Gospel and Tamara Mawson-Phipps 24/12/2022

Aldi donated 25,691 meals to those in need in Edinburgh and The Lothians over the festive period.

The supermarket paired up its stores with local charities, community groups and food banks in the area to collect unsold fresh and chilled food when stores closed their doors early on Christmas Eve and New Year’s Eve.

Charities that benefitted from the donations in Edinburgh and The Lothians include The Pennypit Trust, Tummies Not Trash and Winchburgh Food Store.

The food donations are part of Aldi’s successful partnership with Neighbourly, a community giving platform that links businesses to charitable organisations.  

Aldi’s UK stores donate surplus food to good causes each and every day, with over 40 million meals donated to good causes since its partnership with Neighbourly began back in 2019.  

Britain’s fourth-largest supermarket also worked in partnership with Company Shop Group this Christmas to provide around 2,000 meals at its Community Kitchens across the UK in the run up to Christmas.

Liz Fox, National Sustainability Director at Aldi UK, said: “We are so proud to work with such amazing charity partners throughout the UK and the impact they have cannot be underestimated, especially during the winter months when their services are needed more than ever.

“We are pleased that through our partnership with both Neighbourly and Company Shop we have been able to give back to the communities we serve by providing more donations than ever this Christmas.”

Steve Butterworth, Chief Executive Officer at Neighbourly, added: “We’re pleased to have supported Aldi once again during what is often one of the busiest periods for our charities.

“Large donations like Aldi’s allow us to provide vital support to communities across the country who would otherwise miss out.”

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

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