Joseph Rowntree Foundation’s latest report Going Without: deepening poverty in the UK makes grim reading …
Going without: deepening poverty in the UK
Tag: report
Energy bills crisis: Government must act now, says new report
- New report calls on Government to update its energy bills support to help the most exposed households and consider introducing a social tariff.
- Negligent energy regulator Ofgem enabled now bankrupt energy firms and inexperienced CEOs to increase energy bills further.
- A national homes insulation programme is the permanent solution to bringing down bills and should be launched urgently.
The Government should immediately update its package of support to help households with soaring energy bills before the cost-of-living crisis grips even harder following October’s energy price cap increase, according to a new report by the Business, Energy and Industrial Strategy Committee.
It comes as people are feeling the squeeze of 40-year high inflation of 9.4% – to which the cost of energy is a big contributor – as wage increases struggle to keep up.
Support package out of date
The Government’s Energy Bills Support Scheme provides a £400 discount on energy bills in October for every household, a £650 means-tested one-off payment to eight million low-income households, £150 for those on disability benefits and £300 for pensioners. This was designed when the forecast for the October price cap was £2,800.
With wholesale energy prices continuing to rise industry experts now estimate that the price cap could increase to £3,244 in October, when the NEA forecast one in three (8.2 million) households face fuel poverty. A further rise is expected in January and MPs on the Committee warn that the size of the package has been ‘eclipsed by the scale of the crisis’.
Social tariff and support for vulnerable people
They also raise concerns that the current scheme does not sufficiently target low-income households and those in vulnerable circumstances, with the £400 discount going to some bill payers who don’t need it and repeatedly to people who own multiple homes. The Committee urges the Government to ensure that any update to its support scheme is better targeted at customers who need it the most.
As low-income households struggle to pay their energy bills and get deeper into debt, MPs call on the Government to work with energy suppliers to develop a scheme to help households pay off debts over a longer period.
In the longer-term, the report calls out the injustice of vulnerable people, who are unable to pay their energy bills, being moved on to more expensive prepayment meters.
The report labels this as “unacceptable” and urges the Government to consider replacing the market-wide price cap with a discounted social tariff for vulnerable customers, and a relative tariff for the rest of the market – that caps the difference between the cheapest and most expensive tariffs a supplier offers.
Committee Chair Darren Jones said, “Once again, the energy crisis is racing ahead of the Government. To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.
“We were told by a number of witnesses, ‘if you think things are bad now, you’ve not seen anything yet’. This Winter is going to be extremely difficult for family finances and it’s therefore critical that public funds are better targeted to those who need it the most.
“It’s an injustice that the poorest households continue to pay higher energy costs because they’re on prepayment meters. This must end and a social tariff should be brought forward.
“Ultimately, Ministers know that the long-term solution is to reduce our need for energy through insulation works that keep our homes warm in winter and cool in summer. If the Government is really taking this energy crisis and the country’s net zero targets seriously it will come forward with a bold, fully funded, national home insulation program before the end of the year.”
Ofgem and market regulation
Billpayers have been left to pick up the tab for supplier failures, while recent reports show bosses of at least defunct suppliers could be in line for windfalls of tens of millions. The collapse of 30 suppliers since April 2021 (29 at time of writing the report) is expected to add £94 onto energy bills.
This could increase if the Government is unable to recover the cost of running the special administration of Bulb through its sale and decides that billpayers must pick up the costs, something the report says should be paid for through general taxation.
Ofgem’s incompetence over many years enabled inadequately resourced and inexperienced founders to start energy companies. It failed to supervise regulated companies, which in turn took high risk decisions including not hedging properly and using customers money to offer unsustainable prices that undercut well run energy companies. Ofgem failed to use its existing powers and didn’t bring action against energy suppliers even when it was clear that they should have done.
Ministers and regulators believed deregulation would drive competition, but it instead left an over- exposed and unregulated market which ultimately crashed, costing taxpayers billions of pounds. This market failure is only comparable to the banking crisis of 2008, according to MPs.
Ofgem is pressing ahead with a major package of regulatory reform to reverse its previous shortcomings and shore up the financial resilience of the market, but the Committee remains sceptical of Ofgem’s ability to undertake this task. If measures are poorly designed and executed, they risk further destabilising the market and distorting competition.
Insulating homes to permanently reduce demand
Helping customers pay their energy bills is not a sustainable position for Government and volatile gas prices are expected to be a longer-term concern for the country. It is therefore urgent and essential that Ministers bring forward a fully funded, national campaign to insulate people’s homes – street by street, community by community – in order to reduce the country’s demand for energy.
This report urges the Government to stop announcing short-term policies and moving existing budgets around and instead fully fund a national retrofit programme that businesses, homeowners, and tenants can invest and take part in.
Such a programme is required not just to reduce the cost of energy in winter but to also keep homes cool in extreme heat, reduce the cost of cooling as well as heating, and help the country hit its net zero targets as set out in the Committees previous report on Decarbonising heating in homes
New report shows urgent action is needed to stop traffic fumes contributing to dementia
Environmental campaigners say bold action to limit polluting traffic is needed as a new report showing the links between air pollution and dementia is released.
The report, published yesterday (25 July 2022) by COMEAP, the UK Government’s Committee on the Medical Effects of Air Pollutants, suggests the most likely way that pollution impacts cognitive impairment is through circulation. Air pollutants, particularly small particles, can affect the heart and blood vessels, including the brain.
Environmental campaigners say that the Scottish Government and local councils are not taking enough action to reduce pollution from transport and other sources. Earlier this year, research by Friends of the Earth Scotland showed that Scotland breached air quality limits in 2021 after a historic low in 2020 due to the pandemic.
Friends of the Earth Scotland’s transport campaigner Gavin Thomson said: “Today’s report from the UK Government is further evidence that air pollution is devastating for human health, and it’s really worrying to see the links with dementia being strengthened.
“We have known for a long time that traffic fumes cause asthma and heart conditions, and evidence has been growing about the risk that tiny particles – from exhaust fumes, tyres and brakes – pose to our cognitive health. It is particularly dangerous for young children, the elderly, and people with pre-existing health conditions.
“Four cities in Scotland will soon have small clean air zones limiting polluting vehicles from the city centre. This is the first action we’ve seen to tackle air pollution but it’s nowhere near enough. To improve air quality in our communities and neighbourhoods, we need significant investment in public transport so that everyone can access it, while providing more space for walking, wheeling and cycling.”
1240 Edinburgh households take part in The Big Plastic Count
100 BILLION pieces of plastic packaging are estimated to be thrown away by UK households every year
81,272 pieces of plastic were thrown away in one week by 1240 households in Edinburgh, according to the UK’s largest ever survey of household plastic waste.
For one week in May, just under 100,000 households across the UK – nearly a quarter of a million people – counted their plastic packaging waste and sent their results to Greenpeace and Everyday Plastic as part of The Big Plastic Count.
On average, each UK household threw away 66 pieces of plastic packaging in one week, with Edinburgh households being in line with this average. UK-wide, this amounts to an estimated 3,432 pieces per household when applied over a year.
Therefore, nearly 100 billion pieces of plastic packaging are estimated to be thrown away by UK households every year, with just 12% likely to be recycled in the UK. More of the UK’s household plastic waste (17%) is being shipped overseas than being recycled at home.
Almost half (46%) of the UK’s household plastic waste is being incinerated whilst the remaining 25% is buried in landfill.
83% of the plastic recorded was from food and drink packaging waste, with the most common item being fruit and vegetable packaging.
Marlena from Leith said: “I’m horrified to learn that just 12% of the plastic we produce is likely to be recycled, and that the rest ends up as pollution.
“I sort my plastic waste and recycle what I can, but it’s clear that this system can’t cope with all our waste, and that it’s up to Government and big brands to reduce the amount of plastic being produced in the first place.
“According to my plastic footprint, I use around 50 bits of plastic a week. 89% of that is for food and drink alone. Most of this plastic is designed to be used once and then thrown away. If supermarkets reduced the amount of fruit and vegetable wrapping, we could really cut down on plastic waste.”
This year, the government is starting to decide on legal targets to reduce waste. Greenpeace Edinburgh is calling on the Government to set legally binding targets to almost entirely eliminate single-use plastic, starting with a target of a 50% cut in single-use plastic by 2025.
Alternatives should be affordable, reusable and accessible, including to those with disabilities. Greenpeace Edinburgh volunteers are also calling for a ban on the dumping of our waste onto other countries, and for a UK-wide moratorium on new incineration capacity.
Marlena continued: “When we were out and about in the Meadows and Portobello talking to local residents about The Big Plastic Count, people were really keen to take part, and to find out what really happens to the plastic they put into the bin or to the recycling bag.
“So I’m pleased that Edinburgh North and Leith MP Deidre Brock spoke at the results event in Parliament this week, and urge all of our local MPs to call on the Westminster Government for the ambitious plastic reduction targets that we urgently need”.
SCOTLAND’S SOCIAL CARE RIP OFF
STUC: WHY SCOTLAND CAN’T AFFORD PRIVATISED SOCIAL CARE
The Scottish Government’s approach to their new National Care Service has been declared “untenable” by Scotland’s largest trade union body.
Launching their report ‘Profiting from care: why Scotland can’t afford privatised social care’, the Scottish TUC (STUC) has accused the Scottish Government of “falling glaringly short” in their plans for a transformative National Care Service.
The trade union organisation, representing unions from across health and social care, is calling for the Scottish care home estate to be transferred out of private ownership in totality.
Research within the STUC report reveals that Scotland’s large private social care providers are associated with lower wages, more complaints about care quality, and higher levels of rent extraction than public and third sector care providers.
Under current Scottish Government plans, the proposed National Care Service would remain “ownership neutral”, embedding a role for the private sector in social care.
The research finds:
• Nearly 25% of care homes run by big private providers had at least one complaint upheld against them in 2019/20, compared to 6% of homes not run for profit.
• In older people’s care homes, staffing resources are 20% worse in the private sector compared to the not-for-profit sector. • Privately owned care homes only spend 58% of their revenue on staffing, compared to 75% in not-for-profit care homes.
• Over the last six years, the public sector has paid on average £1.60 more per hour to care workers.
• The most profitable privately owned care homes take out £13,600 per bed (or £28 of every £100 received in fees) in profits, rent, payments to the directors, and interest payments on loans. This compares to £3.43 in every £100 in fees for the largest not-for-profit care home operators.
The report argues that a truly transformative National Care Service must be based on a not-for-profit public service, delivered through local authorities with an ongoing role for the voluntary sector.
Roz Foyer, STUC General Secretary, said: “Our new STUC research clearly shows that large privately owned care homes perform worse than not-for-profit care homes at almost every level. They are worse for those receiving care, worse for the workers providing care and worse for the taxpayer.
“It simply isn’t the case that Scotland can’t afford to buy out private care homes, we can’t afford not to. As it stands, the Scottish Government are falling glaringly short in offering the transformative shake up to social care Scotland badly needs.
“As the National Care Service Bill makes its way through Parliament, politicians must focus their attention on the kind of organisations we want to provide care for our citizens, not as seems to be the case just now, the centralisation of commissioning and outsourcing procedures.”
The recommendations have been backed by Care Home Relatives Scotland. The influential group, set up during the pandemic, have been working to strengthen relatives rights as a result of care home visitation restrictions during COVID-19.
Catherine Russell, Care Home Relatives Scotland: “This report should be essential summer reading for every member of the Scottish Parliament.
“The research findings endorse everything Care Home Relatives Scotland said in our response to the NCS consultation. Our fear is that millions will be spent on upheaval and reorganisation when the priority must be to focus on improvements and with resources on the frontline where they are desperately needed.
“We also share the STUCs grave concerns about the further marketisation of social care and community health services.
“As the report demonstrates, private homes are not the most cost effective or highest quality. They are extremely costly for residents who need to pay and the profit motive tends to drive down staff conditions.
“Scotland can and should find a better, fairer way to do things and this research will be a very useful contribution to that debate.”
Scottish Government: Delivering on child poverty commitments
Record investment of almost £8.5 billion was committed to support low income households between 2018-22, with almost £3.3 billion benefitting children.
The fourth annual progress report on child poverty, published yesterday, shows that all of the actions committed as part of the first Tackling Child Poverty Delivery Plan, Every Child, Every Chance, have been delivered.
The plan focused on three drivers of child poverty reduction – work and earnings, social security and household costs – and on the six priority family types at greatest risk of poverty, including lone parent families and families with a disabled adult or child.
Key achievements over the life of the plan (2018-22) include:
- introduction of the Scottish Child Payment, with more than 1.2 million payments between February 2021 and March 2022 – a £58.6 million investment
- increase in the number of real Living Wage accredited employers, with the proportion of people earning the real Living Wage or more rising from 80.6% in 2018 to 85.6% in 2021
- increase in the funded hours for Early Learning and Childcare from 600 hours in 2018 to 1,140 hours in August 2021, saving families up to £4,900 per eligible child in 2021
- delivery of 35,095 affordable homes, 25,562 of which were for social rent – supporting an estimated 11,585 households with children into affordable housing between 2018-22
- extension of concessionary travel to all under 22s, with approximately 930,000 young people eligible for support – saving families up to £3,000 by the time their child turns 18
- expansion of universal free school meals to children in primaries 4 and 5, saving families around £400 per child and increasing School Clothing Grant to at least £120 for eligible primary school children and £150 for those in secondary school in 2021
Social Justice Secretary Shona Robison said: “Over the last four years, we have strengthened the foundations of support for children and families and used our powers to support those most in need, particularly with the introduction of our new social security system.
“We are now supporting low income households, carers and helping disabled people lead independent lives through 12 benefits, seven of which are entirely new and not available anywhere else in the UK.
“We have made progress despite significant challenges. The pandemic and the continued impact of UK Government welfare reforms has disproportionately impacted the most disadvantaged and been severe. And, of course, households are all now facing the current cost of living crisis.
“That is why we remain determined to continue with our national mission to tackle child poverty. Our second Tackling Child Poverty Delivery Plan for 2022-26, Best Start, Bright Futures, is ambitious and has a range of actions to support families both immediately and in the long term to deliver change.
“We will also continue to call on the UK Government to reverse their welfare reforms, including the two-child limit. Analysis shows that reversing them would put an estimated £780 million in the pockets of Scottish households in 2023-24 and help to lift 70,000 people out of poverty, including 30,000 children.”
Cost of Living Crisis: New report by One Parent Families Scotland
Out of the COVID pandemic and straight into a #costoflivingcrisis …
One Parent Familes Scotland asked single parents accessing their services about the main issues affecting their lives and what needs to be done to tackle them.
Read OPFS’s cost of living impact report: https://bit.ly/39N9i0e
Edinburgh’s private rents soar as the capital bounces back
Post-pandemic surge in demand sees rents hit record high
The appeal of living in the Scottish capital has been reignited, with new figures showing a resurgence in demand for city properties that has pushed rents to record highs.
New research from property letting portal Citylets, shows the average monthly rent in Edinburgh rose 14.2% year on year (YOY) to an all-time high of £1,214, well above the Scottish average of £896.
Figures also show that the average Time To Let (TTL) – the period a ‘for rent’ sign is displayed at the property – is just 16 days, lower than the Scottish national average of 18-25 days across one, two, three and four bedroom properties.
Thomas Ashdown, Managing Director of Citylets said: “City living is back. During the pandemic growth slowed in most cities and accelerated in surrounding areas.
“Now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns. The appeal of the city lights appears to have endured some extreme disruption, it would seem.”
However, he pointed out that letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.
The Citylets quarterly report for the first three months of 2022 shows demand for rental properties across Scotland exceeded supply in both rural and urban areas. However, the numbers of available properties was slightly higher than the historic lows reported the last quarter of 2021.
By postcode Edinburgh’s rental hotspot for one-bedroom properties was EH16 (including Cameron Toll, Craigmillar, Liberton) where the TTL was only seven days, while the TTL for two-bedroom properties in EH14 (including Slateford, Longstone, Wester Hailes, Balerno) was an average of only nine days.
At the top end is the EH3 region (New Town, West End, Tollcross and Fountainbridge) which has the highest property prices throughout Scotland, averaging £1,001 for a one-bedroom, £1,482 for a two-bedroom and £1,923 for a three-bedroom property.
Mr Ashdown said: “Despite relentless economic worry and the conflict in Ukraine that will further impact on the cost of living, the market is very busy. People want to get on with life and make decisions now which may have been postponed in recent months.
“While there is slightly more supply of properties than there was at the end of last year, it’s not a widespread phenomenon and this is not something can always be addressed quickly. The consequence of that is, with no sign of demand reducing, rents may continue to rise throughout 2022.
“While it’s reassuring to see that cities are coming back to life, rent rises of this order are likely to prove problematic for many, given the ongoing cost of living crisis. This is not a discretionary purchase – you have got to have somewhere to call home. More choice in the sector and indeed more widely in housing would, of course, help.”
Charlie Inness, of Edinburgh letting agent Glenham Property said: “Edinburgh has moved from an oversupply of stock to one of a severe undersupply with high tenant demand and unprecedented activity levels.”
He added: “Properties are letting extremely quickly with multiple applications received for each listing. We do not expect the shortage of supply to change as investors are either exiting the market or are cautious of entering due to the uncertainty created by the Scottish Government’s proposals for increasing regulation and artificial control of the sector. Due to this, we expect upward pressure on rents to continue to the detriment of tenants.”
The figures highlighted in the quarterly report show that available properties were being snapped up rapidly in Edinburgh, with 39% of properties let within one week and 84% taking less than a month to be let.
Jamie Kerr, of Edinburgh’s Ben Property said: “Quarter 1 of 2022 has seen an extraordinary surge in demand across Edinburgh and strong rental levels are being achieved with a short time to let.
“However, while the market is extremely busy and properties are letting faster than ever, there is a worrying lack of supply across the board which should be a wake-up call for the Government.
“There needs to be more investment in social and build to rent housing, and a deeper understanding of the vital role played by the private rental sector, encouraging private landlords and investors, not discouraging them. Only this can redress the balance of supply and demand and calm rental levels accordingly.”
Citylets operate Scotland’s premier residential lettings site with over 50,000 properties per year from over 400 local agents. The Citylets quarterly rental report was launched in 2007 and has since become a respected guide for housing professionals including social housing and public policy makers.
The report and associated rental maps are available for download at Citylets Rental Reports.
Climate change is affecting Scotland’s lochs and reservoirs
Climate change has already caused a rapid and extensive warming of Scotland’s lochs and reservoirs with impacts expected to intensify, research has revealed for the first time.
A report published today by Scotland’s Centre of Expertise for Waters (CREW), shows that between 2015 and 2019, 97% of monitored Scottish lochs and reservoirs have increased in temperature. While most warmed by up to 1.0°C per year over this period, 9% increased by more than that – some by up to 1.3°C per year.
Researchers warn that these changes increase the risk of harmful algal blooms developing, which could restrict their use for recreation and water supply, and as a safe habitat for wildlife.
It is expected that waters in the south and east of Scotland are expected to warm the most at first, but this climate-related impact will reach all parts of the country by 2040.
The report makes a number of recommendations to address these impacts in the immediate term, as well as further research to improve our understanding of climate impacts on the complex functioning of lochs and reservoirs.
Environment Minister Mairi McAllan said: “This important research provides yet more worrying evidence of the risks of harm from climate change on Scotland’s water environment.
“It is vital that we do more to mitigate those impacts, to seek to reduce the pace of warming but also to adapt to it. We have committed £243 million since 2015 through the Agri-Environment Climate Scheme to support land management practices which protect and enhance Scotland’s natural heritage, improve water quality, manage flood risk and mitigate and adapt to climate change.
“Scotland is renowned worldwide for the quality of our water. Research like this will be hugely valuable in informing the development of policy solutions and measures to mitigate and adapt to climate change, and also protect, restore and enhance these vital natural assets.”
Freshwater ecologist Dr Linda May of the UK Centre for Ecology & Hydrology (UKCEH), lead author of the report, said: “This research has shown, for the first time, that climate change is already warming our lochs and reservoirs in Scotland, and that this trend is likely to continue.
“It provides early warning of the potential impacts of climate change on biodiversity, water supply and recreational use, and highlights the need for mitigation measures to be put in place as quickly as possible.”
Dr Pauline Lang, project manager for CREW, said: “This pioneering research led by experts at the UK Centre for Ecology & Hydrology demonstrates that, without intervention, climate-driven risk is projected to further increase by 2040.
“To prevent the modelled scenarios becoming reality, we trust the recommendations proposed will enable effective climate action for safeguarding freshwaters now and during the critical decades ahead.
“This project is a great example of how CREW can pivot towards Scotland’s water-related needs by bringing a community of researchers and stakeholders together to collaborate on addressing the most important environmental concerns of this time.”
NatureScot Freshwater and Wetlands Advice Manager Iain Sime said: “Scotland, like the rest of the world, is facing an unprecedented climate emergency. The findings of this comprehensive review are stark, demonstrating the impact that climate change is already having on our freshwater lochs and reservoirs, and their biodiversity.
“The need for urgent action is clear, and at NatureScot we are using the £65m Nature Restoration Fund to prioritise efforts that support the conservation of our lochs and ponds.”
Scottish Environment Protection Agency (SEPA) Senior Ecologist Ian Milne said: “CREW’s report, which used SEPA data from 142 lochs and reservoirs, is important in highlighting some of the climate change pressures Scotland’s environment is facing.
“The findings emphasise the significance of SEPA’s ongoing work to tackle the threats of climate change and biodiversity loss, which is being done in partnership with Scottish Government, local authorities, Scottish Water, environment and community groups, farmers, land managers and others through our River Basin Management Plans.”
Welfare Reform: Reverse the changes!
New report on impact of UK Government policies on families in Scotland
A new report estimates 70,000 people in Scotland, including 30,000 children, would be lifted out of poverty by 2024 if UK Government welfare reforms introduced since 2015 were reversed.
The cost of reversing changes, including the removal of the £20 per week Universal Credit uplift and the two child benefit cap would be around £780 million a year, according to estimates in the Scottish Government’s Welfare Reform – Impact on Families with Children report.
Last month the Scottish Government published its second Tackling Child Poverty Delivery Plan – Best Start, Bright Futures – which sets out immediate and longer term actions to support people out of poverty and to tackle its deep-seated causes.
Social Justice Secretary Shona Robison said: “Tackling child poverty is our national mission and we are helping to lift thousands of children out of poverty in Scotland within our limited powers. This report lays bare the cost of repeated UK Government welfare reforms since 2015 and the challenge we face in lifting children and families out of poverty for good.
“We are determined to tackle the cost of living crisis and we’re already helping to lift thousands of children out of poverty. We invested almost £6 billion from 2018-21 to support low income households, including around £2.18 billion to directly support children. We are also taking steps to mitigate the impact of the UK Government’s bedroom tax and benefit cap as fully as we can within our limited powers.
“We have introduced a package of five family benefits, including the Scottish Child Payment that we will raise to £25 a week by the end of 2022. We are also investing 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.”