Tag: Oxford Economics report

Energy Charitable Trust creates more than £250 MILLION in societal benefits since 2020

HELPING HOUSEHOLDS ESCAPE FUEL POVERTY

·         British Gas Energy Trust, incorporating the Scottish Gas Energy Trust, created more than £7 million in societal impact in Scotland over the past four years. 

·         Number of fuel poor households in Scotland has increased by 60% in past four years, rising from 610,000 to 980,000.  

·         46% of direct grant recipients live in the most deprived areas of Scotland.  

·         Almost two thirds (64%) of beneficiaries in Scotland agreed that they were more satisfied with their lives after receiving support, compared to 54% who said the same before help. 

British Gas Energy Trust, the independent charitable trust funded solely by British Gas, has created £264 million in societal impact – more than £7 million in Scotland – over the past four years, according to new analysis by Oxford Economics.  

The report comes as the number of fuel poor households in Scotland has increased by 60% between 2020 and 20241, rising from 610,000 to 980,000, due to rises in fuel prices and cost of living. The analysis by Oxford Economics found that, at the peak of the crisis, more than two-fifths (41%) nationwide reported difficulty in paying their bills during this time.2 

In response, British Gas Energy Trust, which incorporates Scottish Gas Energy Trust, has tripled its expenditure across the UK, enabled by boosted funding from British Gas, to provide essential support to those who need it most. Since the launch of the Trust in 2004, the energy provider has contributed over £200 million in donations, helping more than 2.2 million nationwide. 

In the past financial year 2023/24, British Gas Energy Trust created £40 million in net benefits to society in England, £7 million in Scotland and £2 million in Wales. The impact of the Trust is seen particularly in areas of acute need where people are more likely to be at risk of fuel poverty, with 46% of direct grant recipients living in the most deprived areas of Scotland.  

The social return on investment (SROI) in the Trust during this time is 5.5. For every £1 spent by the British Gas Energy Trust, it created £5.50 in value for society – more than double that of the previous report undertaken by Oxford Economics which was 2.4 for the financial year 2014/15. When breaking down the impact of each of the Trust’s programmes, the scheme which provides grants to support-focused organisations saw the highest SROI at £6.50. 

Looking at the Trust’s broader economic benefits to society in the last four years, £11 million of additional gains has been made for the exchequer across the UK through additional tax revenue and savings to the NHS by alleviating pressures which negatively impact people’s wellbeing.  

Amongst beneficiaries of British Gas Energy Trust, almost two thirds (64%) of beneficiaries in Scotland agreed that they were more satisfied with their lives after receiving the support and guidance, compared with 54% who said the same before receiving support.  

The purpose of the British Gas Energy Trust is to alleviate the detrimental impact of fuel poverty through three main programmes. This includes: 

·       Direct grants programme, helping people to clear fuel debt arrears;  

·       Financial Assistance Payments (FAP) programme, offering fuel vouchers directly to individuals and families; 

·       and the Supporting Communities at Risk Programme (SCARP) which funds charity advice agencies across Britain who provide holistic money and energy advice to individuals who have been disproportionately impacted by fuel poverty. This includes those with additional needs such as electrical medical health requirements or disabilities  

Jessica Taplin CEO of British Gas Energy Trust said:

“We had a clear goal for the Trust when it was set up 20 years ago – to alleviate the detrimental impact of fuel poverty. With the support of our grant and funded organisation programmes, this new report brings home the positive impact we’ve made so far – but it doesn’t end there.  

“Our fight to help people in fuel poverty continues and this year to mark our 20th anniversary, we’re building on our understanding of the issue from the front line, by visiting charities and third sector organisations who support those most at risk of fuel poverty, and hearing from people affected, to take stock on what really helps and the barriers we still need to overcome.

“The aim is to identify and fund future interventions that are proven to support the most vulnerable communities while gathering meaningful lessons to influence societal change and see significant reductions in fuel poverty over the next decade.” 

Chris O’Shea, Chief Executive of Centrica, parent company of British Gas and Scottish Gas, said: “The impact that the British Gas Energy Trust has had has been phenomenal. Not only is it reaching people in some of the most deprived areas across the country, it is also positively impacting people’s lives, supporting them with financial aid and guidance in their time of need. 

“While it’s been good news that food and energy prices are falling, for many households the cost-of-living crisis is far from over. That’s why we’ve put £140 million into supporting those who need help the most. We will be continuing to work closely with the Trust to ensure that this work continues and to help alleviate the pressures so many are facing – now and in the future.”   

Chris Warner, Lead Economist at Oxford Economics, said: “The report underscores the efficacy of interventions targeting fuel poverty to create social value and demonstrates the profound effect of British Gas Energy Trust’s programmes on its beneficiaries’ sense of wellbeing.

“Ultimately, it showcases why charities such as the Trust should collect comprehensive yet proportionate data on their beneficiaries in order to understand and communicate their impact.” 

In the upcoming months, British Gas Energy Trust – which incorporates Scottish Gas Energy Trust – is hosting a series of roundtables throughout the year in some of the UK’s deprived areas with its funded organisations to gather insights to help drive further systemic change to reduce fuel poverty.

The locations include, London (Bromley-by-Bow), Glasgow, Doncaster, Newcastle, Bristol, Cardiff, and Leicester.  

To find out more to apply for financial grants or support from the British Gas Energy Trust, visit:

https://britishgasenergytrust.org.uk/who-can-apply/  

Business calls for inclusive debate on economic strategy

ISSUED ON BEHALF OF CONCERNED BUSINESS LEADERS

We believe the Oxford Economics report, ‘Raising Scotland’s Economic Growth Rate’ underscores the need for inclusive debate across political parties, Government, trade unions, business, the third sector and the media, indeed all concerned parties, to determine a new economic strategy for Scotland.

Radical and ambitious policy changes are required if Scotland’s economic performance is to be transformed and significantly boosted within the next 15 years and there must be no sacred cows as we determine those changes.

We must, as a necessity not a choice, address Scotland’s low productivity, poor business birth rate and lack of success with scale-ups that mean Scotland’s GDP per head is a mere 44% of Singapore’s level, 48% of Ireland’s, 68% of Norway’s and 75% of Denmark’s.

As the report states “it is not realistic to think that the current economic policies of either the UK or Scottish governments will produce a transformation of Scotland’s economic performance”.

Hence we must act now, in collaboration not conflict, to support and deliver a strategy that takes us up the ladder of GDP and drives innovation and scaling not just within business but across the whole of the public sector.

Achieving significant growth in our GDP is not just in every single persons’ interest, it’s an imperative if we are to maintain and indeed enhance our public services and drive the jobs that are so desperately needed post-pandemic.

We owe it to our young people that we create a vibrant economy for them to inherit and we need to be exceptional custodians of Scotland’s future for their sakes. To do so we cannot simply do what we have always done, tinkering on the edges, Scotland needs to think big and it needs to think fast.

Our opportunity is our size, we are a speed boat compared to the super tanker economies and we are a nation that has historically invented the modern world, its not beyond our ken to do that again.

We implore a rational, national debate on our economic future to then deliver a strategy and an operational implementation plan for Scotland’s growth. 

Signed:

Andrew Parfery,          Company Director,     Caresourcer

Andrew Wilson,          Founding Partner,       Charlotte Street Partners

Carolyn Currie,            Chief Executive,          Women’s Enterprise Scotland

Chris Van Der Kuyl CBE,          Chairman,                   4J Studios

Claus Marquordt,        Co-Founder & CEO,     Integrated Graphene Ltd.

Colin Blair,                   Chairman,                   Buzzworks Holdings

Craig Letton,               CEO,                            MRM Global

Duncan Maclean,        CEO,                            Candle Shack

Ellis Watson,               Company Director

Fraser Edmond,          CEO,                            Broker Insights

Kieran Coyle,               Company Director,     Premiership Experience

Liz Cameron OBE,       Chief Executive,          Scottish Chambers of Commerce

Mairi Mickel,               Company Director and Family Business Adviser

Marie Clare Tully,        Chief Executive,          Columba 1400

Marie Owen,               CEO,                            LS Productions

Mark Beaumont BEM, Athlete, broadcaster, investor and author

Mark Scott,                 Company Director,     Bella & Duke

Paddy Burns,               CEO,                            4J Studios

Philip Ross,                  Company Director,     Safehinge Primera

Poonam Gupta OBE,   CEO,                            PG Paper

Ramin Golzari,            Company Director,     Highlander Outdoor

Ray Perman,                Chairman,                   Inner Ear Ltd

Robin Marshall,           CEO,                            Bain Capital

Ross Tuffee,                CEO,                            Iceberg.tech

Sandy Kennedy,          Chief Executive,          Entrepreneurial Scotland Foundation

Sara Thiam,                 Chief Executive,          Scottish Council for Development and Industry (SCDI)

Steven Easton,            Managing Director,     Green Home Systems Limited

Sir Tom Hunter: Radical policy changes needed to significantly boost Scottish economic growth

  • Oxford Economics report for The Hunter Foundation makes case for transformational growth –
  • Sir Tom Hunter calls for collaboration over a national debate on economic policy in Scotland –

Radical and ambitious policy changes are required if Scotland’s economic performance is to be transformed and significantly boosted within the next 15 years, according to a report published today by Oxford Economics, commissioned by The Hunter Foundation.

The ‘Raising Scotland’s Economic Growth Rate’ report from the influential consultancy Oxford Economics is designed to inform The Hunter Foundation’s strategy and hopefully initiate a national debate with all political and interested parties in the UK and Scotland to help shape policy for transformational growth. 

The aim is to address such issues as low productivity, poor business birth rate and lack of success with scale-ups that help to explain why Scotland’s GDP per head is a mere 44% of Singapore’s level, 48% of Ireland’s, 68% of Norway’s and 75% of Denmark’s.

The report finds that “it is not realistic to think that the current economic policies of either the UK or Scottish governments will produce a transformation of Scotland’s economic performance”. Indeed, nor will they for the UK as a whole. 

It puts the case for policies that go beyond current government boundaries, and considers various options under three headings:

  • Increases in government borrowing to stimulate stronger growth in demand and output
  • Significant tax cuts and deregulation to improve competition and incentives in the economy
  • Large increases in government support for businesses, either directly or through increased spending on infrastructure, education and skills, innovation and the green economy.

It says these approaches are not mutually exclusive and, if there is to be radical change, there is a strong case for a combination of all three. 

Drastic change is clearly required as Scotland’s economy lags behind some other countries to such an extent that it would need a business comparable in size with Google’s total global output to bring its GDP per head of population up the level of Norway’s. 

Scotland’s GDP per head has been about 8% lower than the UK as a whole for many years, largely because of poorer productivity. Scotland’s business birth rate came ninth out of 12 UK nations and regions in 2019. The report forecasts that for the period from 2020 to 2035, Scottish real GDP growth will average just 1.3%. 

In terms of government support and intervention, the report recommends an ambitious industrial policy, possibly centred around Scotland’s renewables industry, tapping into its rich tidal, wave and wind resources. This would capitalise on the COP26 UN Climate Change Conference scheduled for Glasgow in November and would support the Scottish government’s commitment to net zero carbon emissions.

The report says “it is not implausible to suggest that there are business opportunities that resemble those that generated Silicon Valley, several decades ago”. 

By way of example the report also notes on the Scottish National Investment Bank (SNIB): “Given its wide remit, the £2 billion funding for the SNIB does not appear to be particularly generous.

But additional funding would only be likely to have an impact on Scotland’s growth rate if there was a clear focus on achieving that as a goal—together with sufficient oversight and transparency to ensure that funds were suitably allocated (and reallocated when needed).”

Sir Tom Hunter of The Hunter Foundation says: “It is for everyone in Scotland, from governments, policy makers and businesses to help solve the problem of poor economic growth that Scotland has faced for too many years.

“I fully agree with the findings of this far-reaching new report that radical economic policies are needed if Scotland’s economy is to be transformed. The report tells us Scotland would need to make changes equivalent in their impact to creating a business comparable in size with Google’s total global output to bring its GDP per head up the level of Norway’s.

“Moreover, we need far more focus in our economic investments not only to make significantly better gains but also to understand what’s working and what’s not.

“But that is only half the picture – we need to embed innovation in health and education and poverty reduction to free up finance to invest in growing our economy. 

“I hope the calls made in the report for more, and different, economic stimulation from governments, tax cuts and deregulation, and appropriate and targeted state interventions, for example in renewables, will be listened to and acted upon.

“I’m calling on governments, politicians of all parties, industry and interested parties to work together to pave the way for transformational measures that will give the Scottish economy the significant boost it needs.

“Let’s use Covid-19 to reinvent what our future looks like.” 

Richard Holt of Oxford Economics says: “The findings of our report emphasise the scale of change and intervention that is needed to address Scotland’s long-standing economic problems.

“Much is being done, but if political leaders want to close the gap with comparable nations, then they need to go beyond their present policy offers.”