Emergency measures to protect tenants during the cost of living crisis, including the private rent cap and additional eviction protections, will be extended for a further six months if approved by Parliament.
Tenants’ Rights Minister Patrick Harvie has confirmed proposals to keep the Cost of Living (Tenant Protection) Act measures in place until 31 March 2024 at the latest. This would mean:
Most in-tenancy private rent increases would continue to be capped at 3%
Alternatively, private landlords could apply for increases of up to 6% to help cover certain increases in costs in a specified time period where these costs can be evidenced
Enforcement of evictions would continue to be paused for six months for most tenants, except in a number of specified circumstances
Increased damages for unlawful evictions of up to 36 months’ worth of rent would continue to be applicable
Social rented sector tenants are protected by the voluntary agreement reached with social landlords on below-inflation rent increases for this financial year.
Mr Harvie said: “As the cost of living crisis continues, these measures are giving important support to tenants, providing them with much-needed stability in their housing costs and additional eviction protections.
“As the social housing sector have agreed their rents in consultation with their tenants, the focus of this temporary legislation is on providing private renters with similar protection. We know some landlords are impacted by rising costs too.
“The option of increasing rents by 6% in specified circumstances ensures landlords who may be impacted by the cost of living crisis can recover some increased costs associated with their let property.
“The final date of 31 March 2024 would be as long as the rent cap and eviction protections could run if approved by Parliament. The necessity of these measures is being kept under review and we will continue to assess whether they remain justified, balanced and proportionate based on the financial pressures rented households and landlords are facing.
“We are also looking at how to transition out of the emergency measures, and we continue to listen to and work hard with stakeholders to develop and deliver rental sector reform.”
The Scottish Child Payment is now being received by the families of more than 300,000 children and young people, according to official statistics.
New figures published yesterday show that 303,000 children were receiving the payment at the end of March.
The total amount of the benefit paid out since its February 2021 launch now stands at £248.6 million.
Scottish Child Payment was extended to include all eligible children until their 16th birthday and increased to £25 per child per week in November last year.
First Minister Humza Yousaf, who yesterday visited Castlebrae High School to hear how the Scottish Child Payment is making a difference to families, said: “The game-changing Scottish Child Payment is designed to tackle child poverty head-on and lift families out of poverty.
“Families in Scotland are able to benefit from five family payments delivered by the Scottish Government which could be worth more than £10,000 by the time an eligible child turns six and over £20,000 by the time an eligible child turns 16.
“I am pleased at the take up of the Payment but we still want to get that money to all of those eligible. I would encourage anyone who thinks they may be eligible to find out more and apply.”
Tackling poverty and protecting people from harm is one of three critical missions for the Scottish Government and it will continue to tackle child poverty via its second child poverty delivery plan for 2022-26, Best Start Bright Futures.
Earlier this month the First Minister convened a cross-party anti-poverty summit to listen to the views of people with lived experience of poverty, the third sector, academics, campaigners and other interested parties.
The First Minister added: “The Scottish Child Payment is one of an ambitious range of actions to support families immediately and in the long term.”
Polly Jones, Head of Scotland at the Trussell Trust, said: “Everyone in Scotland should be able to afford the essentials but we know that more families are struggling than ever before.
“We have long called for the Scottish Child Payment to be increased and extended to all children up to 16 and so it’s very encouraging to see the positive impact this is making, reaching more families and getting more cash into the pockets of people who need support the most.”
Lidl has officially been named the cheapest supermarket in the UK, beating all major retailers, and undercutting Aldi, in latest price comparison survey
The analysis, conducted by The Grocer, found a basket of everyday items at Lidl cost just £50.27, making it cheaper than competitors even with their discount schemes applied
Lidl’s everyday grocery items clocked in more than 10% cheaper than Tesco, and a whopping £19.91 cheaper than the most expensive retailer, Waitrose
Lidl has once again been named cheapest supermarket in The Grocer’s ‘Super Grocer 33’, beating all major supermarkets, including Aldi.
The price index, which compares the price of 33 everyday grocery items across the UK’s seven major supermarkets, found Lidl to be £19.91 cheaper than Waitrose, the most expensive retailer. This win comes as Lidl’s fourth accolade, out of five surveys since the Grocer 33’s inception.
The survey also found Lidl came out cheapest even after other supermarkets’ discount schemes were applied. Overall, the discounter was found to be ten per cent (£6.17) cheaper than Tesco – and still £5.13 after Clubcard discounts were applied. Similarly, the same products at Sainsburys cost £6.80 more, with no benefit from the supermarket’s Nectar Prices.
The accolade also comes despite traditional supermarkets recently announcing an array of price drops, demonstrating that the discounter still offers better value.
The Grocer compares prices of items on shopping lists across the nation as part of the monthly analysis – from fresh produce, such as milk and grapes, to deodorant, and branded items including Hovis Bread and Kellogg’s Corn Flakes.
Lidl offered the cheapest price on 26 products – and exclusively the lowest price for five products across a range of categories, including:
Baby corn at £2.79 (76p cheaper than the most expensive and 4p cheaper than the next cheapest)
Kellogg’s Corn Flakes at £2.05 (25p cheaper than the most expensive and 20p cheaper than the next cheapest)
Domestos bleach at £1.39 (21p cheaper than the most expensive and 10p cheaper than the next cheapest retailer)
Prawns at £1.99 (£1.76 cheaper than the most expensive and 20p cheaper than the next cheapest)
Custard creams at 54p (26p cheaper than the most expensive and 1p cheaper than the next cheapest)
It’s not just the Super Grocer 33 basket proving this – for the past fourteen weeks Lidl has also been cheapest in a weekly price comparison conducted by the Manchester Evening News on essential groceries.
Ryan McDonnell, Chief Executive Officer at Lidl GB, said:“Every week, independent analysis shows we are consistently the UK’s cheapest supermarket. As a result, we are seeing more customers coming through our doors and switching their weekly shop to Lidl from the traditional supermarkets.
“We know people switch to us make savings, but then stay with us when they realise that they’re not having to compromise on quality.”
Plan to grow economy, target spending and deliver progressive tax system
Economic growth, progressive taxation and spending plans that unapologetically target those in greatest need are at the heart of a financial strategy announced by Deputy First Minister Shona Robison.
The Medium-Term Financial Strategy outlines the approach to ensuring Scotland’s finances are on a sustainable footing and delivering high-quality public services in the face of high inflation. This includes:
growing the economy, including by delivering on ambitious commitments on childcare, seizing opportunities in areas where Scotland has a competitive advantage and supporting entrepreneurs, start-ups and scale-ups
taking tough decisions around spending, focusing on what is needed to achieve the missions of equality, opportunity and community
updating the tax strategy, with a new advisory group to be established this summer and chaired by the Deputy First Minister
The strategy details the tough choices required in challenging financial circumstances. Scottish Government estimates indicate that due to inflation, pay increases and the lack of further funding from the UK Government, current resource spending requirements could exceed funding by £1 billion in the next financial year, and by £1.9 billion in 2027-28.
The gap between capital spending commitments and funding could rise to 16% in 2025-26.
Ms Robison said: “We are steadfast in our commitment to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.
“But we must recognise that our current financial situation is among the most challenging since devolution, driven by the Covid pandemic, the war in Ukraine and the recent period of high inflation.
“Our funding remains largely based on decisions made by the UK Government, but they have failed to take the steps required to inflation-proof our budgets, and their decisions from Brexit to the disastrous mini-budget have made matters worse. This is creating substantial pressure on our public services, which we have no choice but to address.
“Today I have outlined our strategy for managing these challenges, doing all we can within our powers to ensure public finances are on a sustainable path. We will have a laser-like focus on spending, ensuring it targets equality, opportunity and community.
“We will generate economic growth, supporting businesses to invest and create new jobs while increasing tax revenues to invest in better public services. And we will continue to build the most progressive tax system in the UK, ensuring the burden of taxation is placed on those with the broadest shoulders.
“There can be no escaping the difficult choices ahead, but by following the plan outlined today we can provide a more prosperous and fairer future for the people of Scotland.”
Responding to the statement, STUC General Secretary Roz Foyer said: “The Cabinet Secretary for Finance is in a slightly better budgetary position than was predicted this time last year. However, she rightly points out that UK Government austerity and its manufactured cost-of-living crisis continue to hit Scotland hard.
“However, this is not an excuse for inaction. There is a worrying lack of ambition from the government ministers which cannot be condoned.
“Tax reform cannot be kicked down the road for another year. To protect services and pay, the Scottish Government must make good on the First Minister’s pledge to leave no stone unturned in seeking to raise additional income by rebalancing wealth. This means committing now to the policy changes required to introduce wealth and property taxes as the STUC has advocated.”
The Chancellor will meet with food manufacturers on Tuesday to discuss the cost of food and explore ways to ease pressure on households
He is also due to meet the Competition and Markets Authority about their investigations into the fuel and grocery markets
Government will look at reforms around unit pricing, to make it easier for consumers to compare the prices for similar products
The Chancellor will meet with food manufacturers today (Tuesday 23 May) to raise concerns about the high price of food in the UK and discuss measures the government can take with industry to ease the pressure on households.
Building on engagement between the Chief Secretary to the Treasury and the UK’s biggest supermarkets earlier this month, the Chancellor will ask food manufacturers to do what they can to support consumers.
As crucial players in the supply chain to supermarkets, this follow up meeting with food manufacturers will help ministers better understand the challenges firms are grappling with as inflated prices continue to plague the economy. The food and drink manufacturing sector is the largest in the UK, accounting for nearly 20% of total UK manufacturing and employing almost half a million people across the country.
On the same day, the Chancellor will meet with the independent Competitions and Markets Authority (CMA) to discuss the scope of their investigations into road fuel and groceries markets, including the possible action they could take if they are dissatisfied with the level of competition in the sector which could be allowing higher prices to prevail.
The government wants it to be easier for consumers to compare the prices of products, and the CMA is currently reviewing the use of unit pricing both in-store and online in the groceries sector. The government will consider updating pricing rules, including by strengthening the Price Marking Order 2004 (Retained EU Law), after the CMA review has concluded.
While rising food prices in the UK are in line with the EU average and headline inflation fell by 0.3 per cent last month, food inflation grew to 19.2 per cent. Food inflation disproportionately affects low-income households, who spend more of their income on food and are less able to swap what they would usually buy for cheaper alternatives.
Chancellor of the Exchequer, Jeremy Hunt, said: “High food prices are proving stubborn so we need to understand what’s driving that.
“That’s why I’m asking industry to work with us as we halve inflation, to help ease the pressure on household budgets.”
Chief Executive of the Food and Drink Federation, Karen Betts said: “We are looking forward to discussing the multiple drivers of food price inflation with the Chancellor, which have caused the fastest acceleration of food prices in a generation.
“Despite manufacturers’ best efforts in recent months to absorb rising costs in their margins, these have been both persistent and broad-based – from ingredients to energy and labour – making price rises unavoidable.
“We believe food and drink price inflation is close to its peak, and food and drink manufacturers will continue to work hard to keep prices as low as possible, conscious of the pressure on hard-pressed households.
“Government can help too, for example by urgently reviewing upcoming packaging recycling regulations to make them more efficient, by working with us to address labour and skills shortages, and by keeping to a minimum the labelling changes required of companies as a result of the recent agreement with the EU on the movement of food and drink to Northern Ireland.”
The government says it has acted decisively to help struggling households with rising prices, pledging to halve inflation this year and taking action to bring down bills for families. This includes introducing the Energy Profits Levy on oil and gas companies to pay almost half of a typical household’s energy bills, freezing fuel duty and taking difficult decisions on government spending to make sure we do not fuel inflation further.
One of the most generous support packages in Europe has also been rolled out, worth £3,300 per household on average over this year and last. Benefits and state pensions have been increased by over 10 per cent, up to £1,350 in direct cash payments are being made to millions of vulnerable households and record uplifts in the National Living Wage mean someone who is currently out of work and takes a full-time job will be over £7,500 better off.
Extra support has been put in place to help the most vulnerable with high food prices, including the £2.5 billion Household Support Fund which provides local authorities with money to support their communities with the cost of essentials, the £200 million Holiday Activities and Food Programme which supports children on Free School Meals with a nutritious meal during the holidays and an expansion of Free School Meals to all 5-7 year-olds.
The Prime Minister and Farming Secretary brought together representatives from across the UK food supply chain last week, where they outlined a range of measures to help strengthen the long-term resilience and sustainability of the sector and put farmers at the heart of plans to grow the economy.
Vast majority of £150 payments set to be made automatically over two-week period between 20 June and 4 July 2023
More than six million disabled people will receive payment and benefit from extra cost of living support
Comes as part of wider package of Government support, including separate means-tested Cost of Living Payments totalling up to £900, and £300 Pensioner Payments
More than six million disabled people in the UK will receive their one-off £150 Disability Cost of Living Payment from 20 June.
This follows the £150 Disability Cost of Living Payment that was paid last September, demonstrating the Government’s commitment to supporting the most vulnerable in society while delivering on its commitment to halve inflation this year and grow the economy.
Those being paid a disability benefit that qualifies them for the payment will receive it automatically during a two-week window starting on 20 June and finishing on 4 July.
At a time when costs are rising for everyone, this payment recognises the extra costs disabled people in particular often face, such as care and mobility needs.
A small proportion of payments will be made after this date, where claimants were still awaiting confirmation of their eligibility or entitlement to disability benefits on 1 April.
There will also be further payments of £300 for pensioners due later this year, meaning some of the most vulnerable households can receive up to £1,350 in direct Cost of Living Payments.
Secretary of State for Work and Pensions, Mel Stride MP, said: “This payment helps protect those who need our support the most, providing a vital financial boost to six million disabled people.
“Our multi-billion-pound package of support reinforces our commitment to help UK households with the rising cost of living. It comes on top of record increases to benefits and the national living wage.”
Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “We know the cost of living has gone up for disabled people, which is why we are taking action to reduce the financial pressures they face.
“This £150 Disability Cost of Living Payment is on top of up to £900 that most low-income benefit claimants will also receive, helping ensure the most vulnerable in our society are protected from rising costs during this challenging period.”
The full list of benefit recipients that qualify for the upcoming Disability Cost of Living payment are those who receive:
Disability Living Allowance
Personal Independence Payment
Attendance Allowance
Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment)
Armed Forces Independence Payment
Constant Attendance Allowance
War Pension Mobility Supplement
They must have received a payment (or later receive a payment) of one of these qualifying benefits for 1 April 2023 to get the payment. For those who were awaiting confirmation of their entitlement to disability benefits on 1 April, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer, but payments will still be automatic.
Disabled people on low incomes in receipt of means-tested benefits may previously have been eligible for £301 this spring, and stand to be eligible for a further £300 this autumn and £299 in spring 2024. The £150 payment will be made on top of these Cost of Living Payments, with disabled people who wouldn’t qualify for the means-tested support, but who are in receipt of disability support, also receiving the payment.
The Financial Conduct Authority (FCA) has reminded borrowers they can get help from their lenders if they are struggling to keep up with payments, as it found the number of people struggling to meet bills and credit repayments has risen by 3.1m since May 2022 (10.9m, compared to 7.8m in May 2022).
The number of adults who missed bills or loan payments in at least three of the last six months has also gone up by 1.4 million, from 4.2 million to 5.6 million over the same period.
The FCA has repeatedly reminded firms of the importance of supporting their customers and working with them to solve problems with payment, including by writing to industry bosses to make sure they are aware of the regulator’s expectations.
Where firms haven’t supported their customers properly, the FCA has told them to make changes. It reminded 3,500 lenders of how they should be supporting borrowers in financial difficulty and told 32 lenders to make changes to the way they treat customers. This work has led to £29 million in compensation being secured for over 80,000 customers.
As part of its Financial Lives survey, the FCA found that the cost of living is having an impact on people’s mental wellbeing. Around half of UK adults, or 28.4 million people, in January 2023 felt more anxious or stressed due to the rising cost of living than six months earlier.
Sheldon Mills, Executive Director of Consumers and Competition said: ‘Our research highlights the real impact the rising cost of living is having on people’s ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice.
‘If you’re concerned about your finances, you do not need to worry alone. We’ve told lenders that they should provide support tailored to your needs. And, if you find yourself in debt or want to know more about how to manage your finances, free expert advice is available.
‘We will continue to act quickly to make sure financial firms help their customers who are facing financial difficulty or are worried they might be soon.’
The support needed to deal with the rising cost of living goes beyond what is provided by the financial services sector. As a result, the FCA continues to work with other regulators and debt organisations to drive better coordination and help make sure customers are treated fairly and supported if they get into financial difficulty.
The FCA will also be introducing the Consumer Duty in the summer. The Duty will be the driving force behind its consumer protection work, as it will require firms to act to deliver good outcomes for consumers and make sure that they are properly supported while using a financial product or service.
Don’t miss out on the £301 Cost of Living Payment as a recipient of Pension Credit – submit your application for Pension Credit before FRIDAY – 19 May.
Did you know, if you get Pension Credit you could also get a help with your council tax, housing costs, broadband fees and energy bills?
An estimated 20,000 additional people will become eligible for additional help to buy healthy foods when income thresholds are removed for Best Start Foods payments.
The Scottish Government benefit provides help to pregnant women or their partners as well as families with children aged up to three years old, so they can buy healthy food, milk or baby formula.
It is currently paid to people who receive qualifying benefits, so long as their incomes are not above set thresholds. The Scottish Government will introduce regulations that remove those thresholds increasing eligibility for Best Start Foods to around an additional 20,000 people from February 2024.
Social Justice Secretary Shirley-Anne Somerville said: “Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions.
“Rising food prices disproportionately hurt those on the lowest incomes, so removing the threshold for qualifying benefits means around 20,000 people will now get vital help to buy healthy foods.
“Best Start Foods is one of our five family payments, including the Scottish Child Payment, which together could be worth more than £10,000 by the time a first child turns six and more than £20,000 by the time an eligible child is 16.
“As set out in our tackling child poverty plan, we will use all the resources available to provide immediate support to families, while seeking more powers to enable us to truly tackle poverty.”
Ahead of Mental Health Awareness Week (15 – 21 May), a leading vet charity is advocating keeping pets and their owners together through the cost of living crisis.
Nearly all pet owners (94%) say that owning a pet makes them happy, according to new figures from the upcoming 2023 PDSA Animal Wellbeing (PAW) Report – and their support has been vital, especially as many people have been forced to make drastic cutbacks to stay afloat.
While worrying figures have shown that as many as 770,000 owners are going without necessities in order to keep caring for their pets, almost half of owners (44%) have also said that their four-legged friend has been a lifeline during the cost of living crisis.
Nearly all (90%) pet owners felt having a pet improved their lives, a comfort which is especially important as many feel the impact of the cost of living crisis. This figure is higher especially among dog (91%) and cat owners (89%).
The findings also highlight the benefits of having a pet on overall health, with 87% stating owning a pet makes them mentally healthier. While over two thirds (67%) feel it makes them physically healthier – a figure that is even higher among dog owners (86%).
Meanwhile, at a time where many people are having to juggle energy bills and soaring living costs, which can prove isolating, furry friends are essential when it comes to providing companionship. For example, the figures show that over four in five pet owners (85%) say that owning a pet makes them feel less lonely.
PDSA Veterinary Surgeon, Lynne James, said: “Pets are family, and we know that pet owners will go to great lengths to ensure they can continue to care for their beloved pets. It vitally important that with everything pets do for us, we make sure that they have everything they need to live healthy and happy lives.
“Our latest figures show pets are invaluable, especially when their owners are going through hardship. As the cost of living crisis worsens, the work of charities like ours becomes vital, not only to provide essential veterinary care, but also to keep pets and their owners together in their time of need.
“In 2022, we provided veterinary care for over 390,000 pets, whose owners would otherwise have struggled to afford the cost and may even have had to resort to other options such as rehoming – the mental health consequences of which are unimaginable.
“As Mental Health Awareness Week approaches, I’d like to encourage pet owners who are struggling due to rising costs, and who are concerned about being able to afford the cost of veterinary treatment to reach out to us. Our website includes a free eligibility checker to find out whether they’re able to access our services, which is a great place to start.
“We also have lots of free advice on how to reduce the cost of caring for pets, while ensuring they remain healthy and happy – something we hope will take a mental load off for many pet owners through the cost of living crisis.”
PDSA relies on donations to deliver life-saving treatment to hundreds of thousands of pets across its 48 Pet Hospitals in the UK.
To help keep pets and people together, the charity is urgently calling on the public’s support to prevent vulnerable people having to make a truly heart-breaking decision.
