Tag: Poverty Alliance

‘It’s Hard Work Being Poor’

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

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

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

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

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

Download the report from here.

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

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

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

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

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

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

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

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

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

SWBG_PA_Cost_of_Living_Report_FinalDownload

Women’s Realities (case studies)

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

Stella

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

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

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

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

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

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

Sue

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

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

Idia

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

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

Sarah

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

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

Christmas Cheer: Extra cash for low-income families this winter

First Minister announces doubling of December Bridging Payment to £260

Families of an estimated 145,000 children will benefit from extra support this winter to help with cost of living pressures – backed by Scottish Government investment of £18.9 million.

Bridging Payments were introduced in 2021 ahead of the extension of the Scottish Child Payment to 6-15 year olds. The final quarterly Bridging Payment, due in December, will now be doubled to £260, meaning families will receive up to £650 per eligible child this year.

All children registered to receive free school meals on the basis of family low income are eligible and will receive this payment automatically.

Total Scottish Government funding for the Bridging Payments will increase to an estimated £169 million across 2021 and 2022.

This is in addition to the Scottish Child Payment which will be extended to all eligible under-16s from 14 November and will rise to £25 per child per week on the same date – a 150% increase in the benefit within eight months.

First Minister Nicola Sturgeon said: “I am proud of the work the Scottish Government is doing to tackle child poverty. The Scottish Child Payment is paid to eligible families and is unique in the United Kingdom.

“It started for under-6s at £10 per week per eligible child. In April we doubled it to £20.  Five weeks from today we will increase it again, to £25 and will also extend it to families with children up to age 16.

“That is vital financial help for well over 100,000 children, delivered in time for Christmas. That is the sign of a government with the right priorities.

“But we need to do more because we know this winter is going to be really tough. Rather than looking forward to Christmas, too many families will be dreading it because they don’t know if they can afford to heat their homes or even pay for food.

“As part of our help to the poorest families over last year and this, ahead of rolling out the Scottish Child Payment to under 16s, we have made quarterly bridging payments of £130 to children and young people in receipt of free school meals.

“I am delighted that the Scottish Government will double the December Payment from £130 to £260.

“That will help put food on the Christmas table for families of 145,000 children and young people. I don’t pretend it will make all of their worries go away – no government with our limited powers can ever do that. But I hope this investment of almost £20 million will bring a bit of Christmas cheer to those who need it most.”

Bridging Payments were introduced in 2021 ahead of the roll out of the Scottish Child Payment to under 16s. The £130 payments are paid quarterly by councils on behalf of the Scottish Government. Families received up to £520 per eligible child in 2021 and will receive up to £650 in 2022. Bridging Payments support around 145,000 school age children.

Povery campaigners have welcomed the announcement.

The Poverty Alliance tweeted: ‘We welcome @NicolaSturgeon announcement today that the @scotgov will double the final Scottish Child Payment bridging payment, up from £130 to £260.

‘This will put cash in the pockets of those who need it most. This is how we #ChallengePoverty‘

Scotland Demands Better!

The Scottish Government has been warned not to ‘abandon’ communities as Scotland’s largest trade union body, equality and anti-poverty organisations launch Scotland’s largest national campaign against the cost-of-living emergency.

Ahead of SNP Conference and as Challenge Poverty Week ends, The Scottish TUC, the Poverty Alliance and groups across the country launched the ‘Scotland Demands Better’ campaign. The campaign outlines the ‘People’s Plan for Action’ demanding nine actions from the Scottish Government to alleviate the crisis.

Demands include increased public sector pay, rent controls, wealth taxes and universal free school meals. The campaign further calls for increased social security payments, doubling the Scottish Child Payment and increasing Carers Allowance payments. The plan follows the STUC and Poverty Alliance joint summit on the cost-of-living crisis earlier this year.

Launching the campaign, STUC General Secretary Roz Foyer and Poverty Alliance Director Peter Kelly have written to the First Minister calling for a joint roundtable meeting to help implement the plan.

Commenting, STUC General Secretary Roz Foyer: “This campaign represents the voices of our communities. Government cannot abandon them in their hour of need and we’re seeking an urgent meeting with the First Minister to directly support workers impacted by this crisis.

“The People’s Plan for Action sets out exactly what we need to see from the Scottish Government. Whilst Westminster remains unwilling and uncaring to help ordinary workers, the Scottish Government must take a different path.

“Increasing public sector pay, accelerating rent controls and implementing wealth taxes gives Scotland’s poorest the lifeline they need to survive this emergency. Poverty and destitution are political choices. Scotland demands better than the devastation and hardship wilfully inflicted upon our most in need.”

Peter Kelly, director of the Poverty Alliance, said: “We want to put justice and compassion back at the heart of public life in Scotland – so we can build support for practical action to tackle poverty.

“With this plan, we can start to rebuild and renew our social security, boost incomes for workers, invest in the public services we all rely on, and give people the urgent help they need with rocketing costs.

“This crisis is a moment for decision for all of us – and especially our politicians. We can create a better Scotland where poverty is a thing of the past.”

To tackle the cost of living for the people of Scotland, we demand the following –

1. A real pay rise for all public service workers

2. A social security system that loosens the grip of poverty

3. Warm homes, through municipal energy companies

4. Sustained action to tackle rent costs

5. Share the wealth, through income, wealth and business taxes

6. Universal free school meals

7. Cheap, publicly controlled public transport

8. More support for childcare

9. Enforcement of Fair Work

Holyrood: Rent freeze is focus of Programme for Government

Ministers act to protect Scots facing cost of living crisis

A combined rent freeze and moratorium on evictions to help people through the cost crisis has been announced as the centrepiece of the 2022-23 Programme for Government (PfG).

The programme outlines emergency legislation which will be introduced to put in place a rent freeze until at least 31 March 2023 and a moratorium on evictions, as well as a new tenants’ rights campaign. In addition a ‘one-stop-shop’ website will be introduced to provide people with information on the range of benefits and support available to help them through the current cost of living crisis.

With £3 billion allocated to the end of March for a range of support that will help mitigate the impact of the cost crisis on households, the PfG also confirms the Scottish Child Payment will increase to £25 per week per eligible child from 14 November when it also opens to all under 16s.

In addition, the programme includes the roll out of free school meals across all primary school age groups, doubles the Fuel Insecurity Fund to £20 million to help households at risk of self-disconnection or self-rationing of energy, confirms rail fares will be frozen until March 2023 and widens the Warmer Homes Fuel Poverty Programme.

For businesses – in addition to an existing package of financial aid worth over £800 million – six ground-breaking ‘tech scalers’ will be opened, two job-boosting Greenports progressed and the National Strategy for Economic Transformation focussing on economy supporting measures continued.

In total, the PfG sets out 18 new Bills including legislation on an independence referendum and major reforms in the justice system, including a Criminal Justice Reform Bill that will propose the end of the Not Proven verdict in Scots Law and provide anonymity for complainers in sexual offence cases.  A Bill for the creation of the new National Care Service will also go through parliament this year.

The programme also builds on long-term commitments made in the Bute House Agreement and restates Ministers’ commitment to the importance of delivering on Scotland’s climate ambitions. These range from a consultation on legislation to transform how buildings are heated to continuing record investment in active travel.

First Minister Nicola Sturgeon said: “This Programme for Government is published in the context of the most severe cost crisis in many of our lifetimes. It is a crisis pushing millions into poverty and poses a genuine danger, not just to livelihoods, but to lives.

“The Scottish Government is already committed to a range of measures, worth almost £3 billion this year, that will help with rising costs. But the magnitude of what is being experienced by people and businesses means that mitigation is nowhere near sufficient. What is needed now is action on a scale similar to the initial Covid response.

“Regrettably, the powers to act in the manner and on the scale needed do not lie with this Parliament. In my view, they should lie here. If they did, we could have acted already. But they don’t. These powers are reserved to Westminster.

“The cost crisis means this Programme for Government is more focussed than ever before – deliberately so – with priority actions to provide help now.

“To that end we will provide more help for people who may be at risk of self-rationing or even self-disconnection from their energy supply and we will double the Fuel Insecurity Fund to £20 million this year.

“We will also propose emergency legislation to put in place a rent freeze until at least March and a moratorium on evictions.

“Given the powers to act in the manner and on the scale needed do not lie with this Parliament, this Programme for Government also provides for a Scottish Independence Referendum Bill.

“Independence would give us – like it does other independent countries – the levers we desperately need to respond to a crisis such as this. That’s the prize we surely must grasp.”

Commenting on the Scottish Programme for Government, Peter Kelly, director of the Poverty Alliance said: “The First Minister outlined many important measures today. The increase in the value and availability of the Scottish Child Payment will help thousands of households with rising living costs. Rent freezes will help tenants across the country.

“But we could do more. The First Minister said that it is not a lack of political will that prevents us from further action to help people with this cost crisis – it is a lack of money. So, the upcoming emergency budget review must focus on getting additional cash into the pockets of people on low incomes.

“One way we can raise money in Scotland, is through devolved taxes. Previous changes to the Scottish Income Tax have raised hundreds of millions of pounds for public services. We can go further. There are also opportunities to reform local council taxes, to make them fairer and raise much-needed revenue for overstretched services in our communities. There was no mention of any new wealth taxes in this programme for government.

“The First Minister talked about creating a culture of solidarity in Scotland. People in Scotland already believe in holding out a hand to others when we need help. We can use our tax system to support each other in this time of crisis, and reflect the values of compassion and justice that we all share.”

Commenting on the Scottish Programme for Government, Friends of the Earth Scotland head of campaigns Mary Church said: “There is a welcome recognition in the Programme for Government that the cost of living crisis and the climate emergency are interconnected but the action to mitigate their impacts and tackle their root causes falls far short of what is needed.

“One year on from COP26 in Glasgow, the Scottish Government’s fine rhetoric has not turned into the transformative action needed to drive change across transport, housing and energy.

“The Scottish Government must use its forthcoming energy strategy to spell out how it will secure a rapid and fair transition away from the fossil fuels which are driving both crises within the next decade. By transforming our energy system to run on reliable, affordable renewable energy we can future proof our lives against further damage from volatile fossil fuels.

“The energy strategy must focus on demand reduction, energy efficiency and renewables, which can deliver decent green jobs in Scotland instead of fantasy techno-fixes like hydrogen and carbon capture. The Scottish Government has admitted that these speculative negative emission technologies won’t be able to deliver this decade so it’s hard to see why it continues to throw time and resources at the fossil fuel industry’s pipe dreams.

TRAIN FARE FREEZE

“The freeze on ScotRail fares demonstrates how public ownership can keep fares from getting even higher, benefiting passengers and helping support the necessary shift away from cars. While the fare freeze is welcome, the Scottish Government should be going further and actually reducing fares to help more people leave the car behind.

CIRCULAR ECONOMY

“We saw the same promise to introduce a Circular Economy Bill 12 months ago, it must be delivered this time. Consumption targets to reduce both Scotland’s carbon footprint and material footprints need to be at the heart of the Circular Economy Bill to create real change.

HUMAN RIGHTS BILL

“It’s disappointing that the Human Rights Bill that would enshrine the right to a healthy and safe environment in Scots Law has been kicked into the long grass. This is a vital piece of legal protection for people and nature that should not be delayed any further nor cannot it be allowed to become a political football in the constitutional debate.”

City council Leader Cammy Day has welcomed yesterday’s announcement by the Scottish Government that it intends to introduce a bill to give councils the powers to introduce a visitor levy.

The bill, which is expected to be laid before parliament early next year, forms of the Scottish Government’s Programme for Government for 2022/23, as set out by the First Minister in Holyrood this afternoon.

The council has long campaigned for the powers to introduce a levy – which would see overnight visitors pay a small additional charge on their accommodation – and has produced a substantial body of work to back its case.

This included a detailed consultation conducted by Edinburgh’s SNP-Labour ‘Capital Coalition’ in 2018, which saw 85% of the 2,500 respondents expressing strong support for its introduction. This figure included a majority of Edinburgh-based businesses and accommodation providers.

It was estimated then that a levy in Edinburgh could raise in the region of £15m per year to invest in sustainable tourism and managing the impact of tourism on the city.

Council Leader Cammy Day said: “This is fantastic news for the city, and a landmark step following years of work here in the Capital to make the case for a visitor levy – something that’s common practice in other major cities and destinations across the world.

“We’re very proud to be one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. That’s why we believe it’s right to ask visitors to make a small contribution to help us sustain and improve our tourism offer while managing its impact.

“We’ve been building the case for Edinburgh to become the first city in the UK to introduce such a levy, consistently and repeatedly making the case to Scottish Ministers without success – until now. From our citywide consultation held in 2018, our proposals gained overwhelming backing from Edinburgh’s residents, businesses and attractions – and, importantly, also from the majority of accommodation providers.

“Ultimately the income this generates will help us continue to invest in and manage the success of tourism on our city, making sure we continue to offer one of the most enviable and enjoyable visitor experiences in the world – while bringing new and additional benefits to our residents who live and work here all year round.

“We acknowledge, of course, that this has been an extremely challenging period for our culture and hospitality industries and are fully committed to working together with them, the wider tourism industry and other partners to co-produce a scheme that works best for the whole of our Capital city.

“I’ll be pushing the Scottish Government hard to ensure that any income generated is in addition to our block grant funding – not instead of it – and that we’re in a position to benefit from this as soon as possible.”
 

Energy price cap rises by 80%

Energy price hikes will cause ‘stress, anxiety, illness, debt and death’

Today (26 August) Ofgem has announced the energy price cap will increase to £3,549 per year for dual fuel for an average household from 1 October 2022.  

This comes as Ofgem’s CEO warns of the hardship energy prices will cause this winter and urges the incoming Prime Minister and new cabinet to provide an additional and urgent response to continued surging energy prices.  

The new price cap level is based on a transparent methodology and calculations by Ofgem. The data is published on the Default tariff cap level: 1 October 2022 to 31 December 2022 publication.

The increase reflects the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic and have been driven still higher to record levels by Russia slowly switching off gas supplies to Europe.  

The price cap, as set out in law, puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to our homes. It also sets a strict and modest profit rate that suppliers can make from domestic energy sales. However, unlike energy producers and extractors, most domestic suppliers are currently not making a profit.

The price cap protects against the so called ‘loyalty premium’ where customers who do not move suppliers or switch to better deals can end up paying far more than others. Ultimately, the price cap cannot be set below the true cost of buying and supplying energy to our homes and so the rising costs of energy are reflected in it.  

Although Ofgem is not giving price cap projections for January because the market remains too volatile, the market for gas in Winter means that prices could get significantly worse through 2023.

Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many.  

“The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy. Ofgem has no choice but to reflect these cost increases in the price cap.

“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.

“We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action. The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”   

Ofgem will continue to work with government, consumers groups, charities and suppliers, in supporting any new package of help or measures to ease the crisis.

Ofgem has also today strengthened the rules around direct debits to ensure suppliers set them at the right level, meaning that customers only pay exactly what they need to. The changes will stop suppliers from building up excessive customer credit balances and using them in a risky way as working capital.

Ofgem’s clear role is to protect consumers, and it has also today:

  • Strengthened requirements for suppliers to have sufficient control over the key assets they use to run their businesses. Together, this and the direct debit rule changes build on existing requirements to boost supplier resilience to better protect customers from costs associated with supplier failures.
  • Extended the Market Stabilisation Charge (MSC), which is paid by suppliers and helps protect customers from the cost of supplier failure.
  • Extended the ban on acquisition only tariffs which ensures all energy tariffs are available to existing as well as new customers, ensuring all consumers can get a fair deal on their energy.
  • Launched a review into the mechanism and level of profit margin available under the price cap to ensure that suppliers do not earn excessive profits and receive only a fair return for the services they provide to customers.

The new price cap level will take effect from 1 October 2022, but it is possible some suppliers may begin increasing direct debits before this date to spread costs. Customers worried about when their direct debit will increase should contact their supplier. Any money taken from customers to build up a credit will only ever be spent on their energy supply and customers can ask for their credit balance to be returned at any time.  

Anyone worried about paying their bill should contact their supplier in the first instance. They are obliged to discuss payment plans and direct customers to government and third sector support where available. Ofgem is tightly monitoring suppliers’ performance in this area and has told all suppliers now is the time to step up their support for customers, especially those on low incomes or in a vulnerable situation.  

Ofgem continues to monitor the impact of the price cap and to work with stakeholders and government on what more can be done for those least able to pay but most in need of energy.

When the new Prime Minister announces what additional support packages will be available, Ofgem will continue to examine how best it can help those groups of people that need it the most.  

Reacting to today’s announcement by Ofgem, Poverty Alliance director Peter Kelly said: “The first moral duty of government is to protect people and provide them with security. The UK Government and Ofgem are failing badly in that duty and acting without any sense of compassion and justice.

“This massive price hike is in line with predictions. Ministers knew this was coming for months but have put nothing in place to prevent a humanitarian disaster.

“We must be clear. Bills of this size will be completely and utterly unaffordable for people on low incomes, many of whom have already been struggling with cuts to social security and huge wage squeeze for years and years. They will cause stress, anxiety, illness, debt and death.

“The UK Government must act now. It is simply not right that they continue to dither – prices must be frozen and targeted support must be put in place to help those most in need.”

Chancellor of the Exchequer, Nadhim Zahawi said: “I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners.

“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat out to develop options for further support. This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”

He later told the public to cut back their energy consumption – this from the man who once claimed parliamentary expenses for heating his stables!

This morning, Ofgem announced that the energy price cap will rise by 80%, taking typical household bills from £1,971 a year to £3,549 a year on 1 October.

People will rightly be worried by these huge price hikes. These eye-watering increases will simply be unaffordable for households up and down the country.

We’re demanding the government increase its support package for every household to at least £1,000, with extra support for the most financially vulnerable, or risk pushing millions of households into financial distress this winter. We also expect energy suppliers to ensure their customer service centres are adequately resourced to resolve queries quickly and help those struggling to pay their bills.

Are you concerned what the price cap rise could mean for you? Find out more about today’s news and use our tool to calculate what the price cap rise means for your own payments.

THE Government needs to spend £100 billion to freeze household energy prices for a year, according to an industry expert. Derek Lickorish, chairman of retailer Utilita Energy, told GB News: “Back in the banking crisis, Gordon Brown found £500 billion pounds to stop the banks falling apart and I’m advocating that we’re looking at about £100 billion to freeze prices for one year.

“At the moment, we don’t know what Liz Truss is bringing to the party and we don’t know whether it’s going to meet the size of the gap.

“While we have a price cap , when we get to the first of January, that figure is going to have a five in front of it, and it’s going to be another couple of thousand pounds and people cannot possibly afford to pay that amount of money for their energy bill.”

Speaking to Alastair Stewart on GB News, he added: “I think the area that needs to be looked at quite closely is the market structure, in terms of the way electricity is bought and sold, and I know there are plans to look at this now with some urgency.

“But you have a situation where you’re bringing on to the network power that has been effectively subsidised by the renewables obligation, yet they are getting these huge prices in terms of generation because the market price is set by gas.

“The wind doesn’t cost any more. The sun doesn’t cost any more. But these schemes are making an awful lot of money. 

“To be fair, that’s about solutions that were brought in prior to 2017, so there was a change so that renewable projects from 2017 would get the price that they agreed.”

Asked to make a final point, Mr Lickorish said: “I want the Government to tell us what’s happening and it needs to be a very, very big number that we need to know now.

John Redwood MP, who has been tipped for a post in a new administration, suggested that VAT on energy will be scrapped for businesses when a new Prime Minister is in place.

“Cancelling VAT on fuel, at least temporarily while fuel costs are elevated, is a serious runner and any new government team will want to look at that,” he told Liam Halligan on GB News.

“I certainly agree with you that there are a lot of businesses under a lot of pressure and I think that must be part of a comprehensive package to explain to industry what help might become available.

“And what can be done about the excessive fuel bills that will directly now lead to some closures, as we’ve heard recently.”

Commenting on the energy price cap rise announced today, Crispin Truman, chief executive of CPRE, the countryside charity, said:  ‘This winter’s energy bills are a ticking time bomb threatening to blow apart household finances.

“Rural areas, where wages are lower and homes often cost more to heat, will be devastated if the full force of the price rises are felt by consumers. The government must step in to prevent those living in the countryside from having to choose between eating and heating this winter. 

‘We’ve been here before in the pandemic – the country is entering a national crisis that requires an emergency response. Ministers must urgently put in place direct financial support to get people through the winter, while working to deliver the only viable long term solution – improving the energy efficiency of our homes. 

‘In addition to stratospheric energy bills, the cost of living crisis is being driven by a lack of housing and soaring rents for millions in the private rented sector. Homelessness is rising as half a million people languish on social housing waiting lists. In the Eden district of Cumbria, homelessness rates are more than four times what they were in early 2020. 

‘Twiddling with taxes won’t cut it. To ease the cost of living crisis the government needs to provide immediate monetary support. To prevent a generation of rolling winter crises, we need to get off gas and rapidly invest in home insulation and cheap renewable energy. A longer term fix must also include providing many more social and affordable homes.’ 

Poverty Alliance: Action needed NOW to lift children out of poverty

We have to make sure that @scotgov‘s plan to end #ChildPoverty – ‘Bright Start, Bright Futures’ – is right.

This important report from our friends at @jrf_uk and @SaveChildrenSCO shows that – despite very welcome action – there is a lot to do:

stc-009_stc-jrf_poverty_report_10-1Download

Knowledge is Power: invitation

Dear all,

Scottish Community Development Centre and the Poverty Alliance would like to invite you to attend an online shared learning and celebratory event with community groups supported by the Knowledge is Power programme to design and carry out their own community-led action research – where the community decides on the issue to be researched, designs and carries out the research, and makes use of the results.

The session should be relevant to anyone interested in this approach, including community and voluntary organisations, funders, academics and public sector organisations.

The event will be held using Zoom on Thursday 16th June from 1.30-3.30pm. 

Sign up for the event at https://www.knowledgeispower.scot/news/knowledge-is-power-meeting-wtexa.

Knowledge is Power is a programme from Scottish Community Development Centre and The Poverty Alliance to support community-led action research.

It has been jointly funded by The National Lottery Community Fund and the Scottish Government with additional contributions from the Corra Foundation and Inspiring Scotland.

The two-year programme has supported community organisations across Scotland to develop their own evidence to influence change in their communities – and to take forward actions for improvement.

As Knowledge is Power website has also been developed, featuring a toolkit for groups wanting to carry out their own research as well as examples of where groups have been supported to do this.

Participants at this informal event will hear from community groups who have carried out their own research over the past 2 years. There are some important messages to share, including the benefits community-led action research brings to individuals, groups and services as well as the challenges faced, particularly during the Covid-19 pandemic.

Kind regards

The Knowledge is Power team

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Best Start, Bright Future: Poverty Alliance webinar on the Scottish Child Poverty Delivery Plan

Best Start, Bright Future – a Poverty Alliance Webinar

Monday 6 June 2022: 10am – 1pm 

Scotland is a country where compassion is strong, but where child poverty is an ongoing injustice that we have to end together.

Best Start, Bright Future, the Scottish Government’s Tackling Child Poverty Delivery Plan, was published at the end of March. It’s designed to help create the change we need to drive down child poverty and reach Scotland’s interim child poverty targets in 2024. 

There are a lot of commitments in the plan, and we are hosting a special morning webinar to explore how we can make sure they are implemented, and how they can best deliver practical change in our communities. 

The plan includes pledges to: increase the level of the Scottish Child Payment; create a new employability offer to help parents get into work, and; mitigation of the benefit cap. 

There is lot more besides, and Best Start, Bright Futures will touch on all areas of anti-poverty activity in Scotland. It is crucial for groups and organisations across the country to understand what it all means for their work.

Please join us for a morning of discussion on how we can all work together to ensure that the ambition contained in the plan is delivered.   

Click here to register!

Agenda 

10:00 Welcome  Peter Kelly, Director, the Poverty Alliance 

10:05 Best Start, Bright Futures: What you need to know! 

Julie Humphreys, Deputy Director, Tackling Child Poverty & Financial Wellbeing, Scottish Government  

10:20 From Plan to Practice: Perspectives on Best Start, Bright Futures 

Professor Morag Treanor, Deputy Chair, Poverty and Inequality Commission 

John Dickie, Director, Child Poverty Action Group Scotland 

Bruce Adamson, Children and Young People’s Commissioner Scotland 

10:50 Panel Discussion 

11:15 Comfort Break 

11.30 Workshops 

1. Making Employability Work for Priority Group Families 

  • Jack Evans, Policy Manager, Joseph Rowntree Foundation 
  • Laura Millar, Strategic Manager, Fife Gingerbread 

2. Social security: Priorities for tackling poverty  

  • Tressa Burke, CEO, Glasgow Disability Alliance (tbc) 
  • Polly Jones, Head of Scotland, Trussell Trust (tbc) 

3. Childcare and Child Poverty – Meeting the Challenges 

  • Anna Ritchie Allan, Executive Director, Close the Gap (tbc) 
  • Satwat Rehman, Chief Executive, One Parent Families Scotland (tbc)  

12.30: Feedback from groups and concluding remarks 

13:00 Close 

Persistent poverty levels ‘stable’

Latest Official Statistics published

Between 2016 and 2020, one tenth of people in Scotland were in persistent poverty after housing costs. Persistent poverty identifies individuals who live in relative poverty (have a household income of less than 60% of the UK median) for at least three years out of the last four.

Persistent poverty rates were similar for children and working-age adults (10%) and pensioners (11%). Over time, persistent poverty rates have been fairly stable for all age groups, except for children in the most recent period.

Persistent child poverty saw a relatively large drop compared to previous estimates, from 15% to 10%. This observed fall should be interpreted with caution as persistent poverty estimates do tend to fluctuate. So not all of this decrease is likely to reflect real change and will be due to a range of factors.

Some low income households will have benefitted from increased financial support during the pandemic. At the same time, reduced earnings and job losses may have resulted in a lower median income, leading to a fall in the poverty line, and a drop in the relative poverty rate.

Not everyone in poverty is in persistent poverty: More than a third of people in poverty move out of poverty each year. At the same time, a similar number of people who were not in poverty before enter poverty each year.

The persistent poverty report usually goes alongside the main poverty statistics publication Poverty and Income Inequality in Scotland. This will not be published this year due to the disrupted data collection during COVID-19 restrictions.

An analytical report will be published instead to explain the limitations of the most recent data. Users should note that the latest reliable figures are those previously published. 

These figures are produced in accordance with professional standards set out in the Code of Practice for Official Statistics.

Reacting to the publication of new statistics on poverty in Scotland and across the UK, Poverty Alliance director Peter Kelly said: “In a compassionate society like ours, we believe in looking after one another and protecting each other from harm. But these new figures show that we are failing to put that compassion into practice.

“When the Chancellor raised Universal Credit by £20 a week, he lifted 400,000 children across the UK out of poverty. But when he cut that £20 lifeline, many of those children and their families will have been pulled back into poverty’s grip. It was an unjust and scandalous decision then, and its impact on people’s lives is becoming even clearer now.

“The Scottish Government’s actions to increase the Scottish Child Payment show what can be done when we make our compassion concrete and is a good example to build on. We need to make sure that the money gets to the people who need it, as soon as possible, and that wider action on transport, childcare and housing all ramp up in ambition to help us meet our child poverty targets.”

The full publications are available here:

Persistent Poverty in Scotland presents estimates of the proportion of people in Scotland who live in persistent poverty. The data come from the Understanding Society Survey, and the latest statistics cover the period from 2016 to 2020.

These poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.

Poverty and Income Inequality in Scotland – analytical report provides information on the limitations of the most recent data for 2020/21 from the Department for Work and Pensions Family Resources Survey Households Below Average Income dataset. 

This report and dataset are not official statistics. Users should note that the latest reliable figures are those previously published for 2019/20. 

The latest estimates are unreliable as they are based on data collected during the first year of the coronavirus pandemic and associated restrictions. These affected the data collection and as a result, it was not possible to obtain a representative sample for Scotland. UK income and poverty figures are published on the same day by DWP.

Key poverty measures:

Relative poverty: A household is in relative poverty if its income is below 60 percent of the middle household income in the UK (the poverty threshold). Relative poverty is a measure of whether the income of the poorest households are keeping pace with middle income households across the UK.

Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years are affected by it through their lifetime.

Household income is adjusted for household size.

The poverty publications present poverty figures before and after housing costs. Before housing costs figures are a basic measure of household income from earnings and benefits.

After housing costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs.

The poverty estimates in this summary refer to relative poverty after housing costs.

Scottish Government launches latest child poverty delivery plan

Best Start, Bright Futures

Child poverty in Scotland is projected to fall to its lowest level in nearly 30 years as a result of the actions taken to date and commitments in the second Tackling Child Poverty Delivery Plan.

More than 60,000 fewer children could be living in relative poverty in 2023 compared to 2017, according to updated modelling.

Social Justice Secretary Shona Robison said a focus on long-term parental employment opportunities, strengthened social security and support to reduce household costs are at the heart of the new four year delivery plan, Best Start, Bright Futures.

In 2022-23 this work will be supported by investment of almost £113 million on top of funding already allocated to ongoing programmes.

Actions include:

  • Significantly increasing employment services with the aim of supporting up to 12,000 parents to enter and progress in sustainable and fair work through actions taken over the life of the Plan, with initial investment of up to £81 million in 2022-23 in employability support for parents
  • Increasing Scottish Child Payment from £20 to £25 when the benefit is extended to under 16s by the end of 2022. This means £1,300 of support per eligible child per year. It is five times more than originally asked for by campaigners and an investment of £671 million over the next two years
  • Delivering a new Parental Transition Fund to tackle the financial barriers parents face in entering the labour market, particularly over the initial period of employment, with an investment of up to £15 million each year
  • Taking immediate steps to mitigate the UK Government’s Benefit Cap as fully as possible within devolved powers, through Discretionary Housing Payments. This will support our priority families, in particular, who are disproportionately impacted by this policy

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Ms Robison said: “I am proud that our actions of the past four years, together with those set out in this plan, are projected to deliver the lowest level of child poverty in Scotland in 30 years.

“We are taking immediate steps to put cash in the pockets of families – tackling the cost of living crisis and helping to lift thousands of children out of poverty in Scotland.

“Our package of five family benefits for low income families, including the increased Scottish Child Payment, will be worth over £10,000 by the time a family’s first child turns 6, and £9,700 for second and subsequent children.

“That is a difference of more than £8,200 for every eligible child born in Scotland in comparison to England and Wales – highlighting the unparalleled support offered by this government to children across the early years.

“We will also build on our investment in employment support for parents, through new skills and training opportunities and key worker support to help reduce household costs and drive longer term change.

“Our national mission to tackle child poverty is already giving more children the best start and a bright future. We are determined to meet our ambitious targets set for 2023-24 and 2030 and beyond, so that no children in Scotland are living in poverty. We know there is not a silver bullet and this cannot be done overnight.”

Scottish Government Minister and Scottish Green Party Co-Leader Patrick Harvie said: “This plan delivers on key commitments to tackle child poverty and inequality in the cooperation agreement between the Scottish Government and the Scottish Green Party.

“We welcome the actions being taken, particularly in mitigating the UK Government benefit cap and increasing the Scottish Child Payment which will provide major support to thousands of low income households.”

Reacting to the Scottish Government’s publication of its Child Poverty Delivery Plan, Peter Kelly, director of the Poverty Alliance said: “Child poverty is unjust and unnecessary. It’s a sign of Scotland’s commitment to compassion and justice that there are stretching targets to end it.

“A clear message from Poverty Alliance members ahead of the  new plan was to ‘put money in people’s pockets’. Commitments to increase the Scottish Child Payment to £25 by the end of this year and to mitigate the unjust benefit cap are therefore welcome. With one in four children in Scotland still growing up in the grip of poverty, and the rising cost of living meaning that many more families are being swept into hardship every day, this new plan needed to set out how we can do more to protect people from harm.

“On the back of the Chancellor’s failure of a Spring Statement yesterday, we needed to see real commitments that will make a positive impact on the lives of people on low incomes. Alongside the mitigation of the benefit cap, the expansion of employability support that provides tailored support to families can help to make that impact.

“However, there is significant scope to go much further to ensure that cash makes it to those who most need it. There is clear evidence that increasing the Scottish Child Payment to £40 would have an even greater impact in unlocking families from poverty and take us closer to the target of eradicating child poverty by 2030.

“The rising tide of poverty sweeping across the country demands that the actions contained in this Plan are not the peak of our ambitions, but merely a start. Our efforts cannot and must not cease.”

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