Tag: Royal Bank of Scotland

Royal Bank of Scotland: October report on jobs

Renewed downturn in permanent placements during October

  • Permanent placements fall amid growing economic uncertainty
  • Temp billings decline for first time in 26 months
  • Pay pressures soften, but remain strong overall

Hiring activity across Scotland fell into decline during October, with both permanent staff appointments and temporary billings contracting, according to the latest Royal Bank of Scotland Report on Jobs survey.

Permanent placements have now fallen in two of the past three months, while the downturn in temp billings was the first seen since August 2020. Moreover, the rates of contraction were strong overall amid reports of growing economic uncertainty, softening demand conditions and the deepening cost of living crisis.

October data also revealed further increases in starting salaries and temp wages. However, rates of inflation continued to ease, signalling a mild waning of pressure on pay.

Permanent staff placements fall solidly

October data highlighted a fall in permanent staff placements across Scotland. After a month of growth in September, the respective seasonally adjusted index reverted below the neutral 50.0 threshold to signal the second reduction in three months.

The rate of contraction was the fastest seen in nearly two years and solid, with recruiters often linking the fall to growing economic uncertainty and the cost of living crisis.

At the UK level, a fall in permanent staff hires was also noted, with the rate of decline similar to that seen in Scotland.

Scottish recruitment consultancies signalled a reduction in temp billings during October, thereby ending a 25-month run of expansion. The rate of contraction was the quickest seen since July 2020 during the initial wave of the pandemic and strong overall. According to panellists, the latest fall was driven by reduced activity at clients. 

Across the UK as a whole, temp billings were broadly stagnant after rising in each of the prior 26 months.

Downturn in permanent staff supply fastest in three months

Recruiters across Scotland noted a twenty-first successive monthly fall in permanent candidate availability during October. The pace of decline quickened on the month and was marked overall. Panellists generally linked the latest downturn to skill shortages and increased hesitancy to seek out new roles due to rising economic uncertainty.

The pace of reduction across Scotland was more rapid than that recorded for the UK as a whole.

The supply of temp labour across Scotland fell again during October. Despite being severe overall, the rate of decline was the second-slowest in seven months (after September). Recruiters highlighted a lack of European workers and ongoing skill shortages as factors constraining supply.

As has been the case for the last seven months, the rate of contraction in temp staff availability in Scotland was sharper than that seen at the UK level.

Starting salary inflation softens further in October

Latest survey data indicated that average starting salaries for permanent staff in Scotland increased at the slowest pace since June 2021 during October. That said, the pace of wage inflation remained elevated in comparison to the historical average. According to anecdotal evidence, skill and candidate shortages continued to drive up rates of pay.

Data for the UK as a whole also signalled a softer rise in starting salaries during October. Moreover, the pace of inflation was softer than that seen for Scotland for the first time in four months.

As has been the case for the past 23 months, temp wages rose across Scotland during October. While the respective seasonally adjusted index hit an 18-month low, it signalled a sharp rise overall. Greater competition for scarce candidates was cited as a key driver of the latest increase in temp pay.

At the national level, wages also increased at a much slower rate during October. However, the rate of inflation was quicker than that registered in Scotland.

Demand for permanent staff expands at slowest pace in 20 months

Demand for permanent staff grew sharply during October, thereby extending the current period of expansion to 21 months. However, the respective seasonally adjusted index fell for the sixth month running, with the latest reading edging down to a 20-month low.

Across the monitored job categories, IT & Computing registered the steepest rate of expansion, followed by Nursing/Medical/Care.

Recruiters across Scotland noted a twenty-fifth successive monthly rise in temp staff demand during October. While the rate of growth was the weakest since February 2021, it was quicker than that seen across the UK as a whole.

At the sector level, IT & Computing saw the quickest growth in short-term vacancies, followed by Accounts & Financial.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Labour market conditions across Scotland deteriorated in October, as for the first time since August 2020, both permanent placements and temporary billings contracted.

“At the same time, rates of vacancy growth for both permanent and short-term staff continued to ease. Candidate and skill shortages meanwhile stretched the supply of labour thin, with recruiters also noting that increased economic uncertainty had impacted candidate numbers. Though it does seem that market imbalances are becoming less pronounced, the effect on pay remains strong.

“The data therefore suggest that growing uncertainty about the economy and the cost of living crisis are already affecting the labour market, and could weigh further on hiring decisions for the remainder of the final quarter of 2022.”

Business activity falls for second month running amid sharper falls in new work

  • Accelerated contraction in new work
  • Sentiment weakens further in September
  • Inflation remains elevated, but softens

Business activity across Scotland’s private sector contracted again in September, according to the latest Royal Bank of Scotland PMI® data. The seasonally adjusted headline Royal Bank of Scotland Business Activity Index – a measure of combined manufacturing and service sector output – was little-changed from 47.8 in August at 48.0, signalling a second consecutive month of contraction.

Despite easing, a high inflationary environment drove the latest decline in business activity and new orders, with the rate of contraction for the latter gaining momentum.

The challenging conditions meant that the degree of confidence further weakened during September. The latest reading registered a 28-month low, suggesting subdued performance as we progress into the final quarter of the year.

New business received at Scottish private sector companies contracted for the third month running during September. The rate of reduction quickened on the month and was solid overall. Inflationary pressures and the cost-of-living crisis were primarily linked to the latest downturn. 

At the sectoral level, manufacturing firms reported the softest decline in factory orders in three months, while services providers reported their first contraction since March 2021.

Amid soaring prices and recession fears, overall activity expectations weakened for the second consecutive month in Scotland’s private sector in September. Business confidence hit a 28-month low, posting below the average recorded over the series history and much weaker than the UK-wide average.

As has been the case since April 2021, employment across Scotland’s private sector increased in September. According to anecdotal evidence, successful hiring was in part linked to fresh graduates entering the workforce. While the respective seasonally adjusted index improved marginally from the that seen in August, it was the second-lowest reading in 17 months.

The pace of employment growth in Scotland was softer than the UK average.

September data revealed a reduction in backlogs of work for the fourth consecutive month at private sector companies in Scotland. The rate of depletion quickened to the fastest in 20 months. Respondents frequently mentioned the fall in backlogs reflected fewer new orders.

The rate of reduction at Scottish private sector companies was quicker than the UK-wide average which, in contrast to Scotland, softened during September.

For the twenty-eighth month running, average cost burdens rose across private sector firms in Scotland during September. The rise was largely blamed on inflationary pressures in labour market and supply chains. Despite the rate of input price inflation remaining historically high, the latest incline was the softest since August 2021 with both sectors noting slower rates of inflation.

Moreover, the pace of inflation in Scotland lagged behind that seen at the UK level, posting the second-softest of the 12 monitored regions ahead of the South West of England.

Scotland’s private sector firms raised their charges during September, thereby stretching the current run of output price inflation to 23 months. According to panellists, prices were raised primarily to offset increasing costs. That said, the rate of output price inflation was the weakest in 13 months and the softest of the 12 monitored UK regions.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “Business activity and new orders continued to decrease across the Scottish private sector during September, thereby stretching the current runs of contraction to two and three months respectively.

“The squeeze on customer disposable incomes amid a high inflation environment underpinned the latest downturn in output and new business.

“Despite falling business requirements, firms raised employment for the eighteenth successive month, albeit at a moderate pace. The combination of a drop in new work and expanding workforces allowed firms to work through their backlogs.  

“The post-pandemic boom is clearly at an end, as the ongoing cost-of-living crisis plays an increasingly important role. Moreover, the 12-month outlook continues to weaken.”

Royal Bank of Scotland Jobs report shows permanent placements increase in September, but growth “mild”

  • Fresh uplift in permanent staff appointments, but growth only mild
  • Temp billings rise at quicker pace
  • Pay pressures ease, but remain historically sharp

Scotland’s labour market saw an improvement in overall hiring activity in September, according to the latest Royal Bank of Scotland Report on Jobs survey, with recruiters reporting a fresh rise in permanent placements and stronger temp billings growth.

The seasonally adjusted Permanent Placements Index rose back above the neutral 50.0 mark, rising from 47.3 in August to 52.7 in September, to signal a mild uplift in permanent staff appointments, while temp billings increased at a strong and accelerated rate. 

At the same time, sustained growth of vacancies, combined with another deterioration in candidate availability, led to further upwards pressure on pay. Notably, both starting salaries and temp wages increased at historically sharp rates, despite easing since August.

Permanent placements return to growth

Adjusted for seasonal variation, the Permanent Placements Index rose back above the neutral level of 50.0 in September to signal a fresh rise in permanent staff appointments across Scotland. Panellists attributed the upturn to strong demand for staff and increased hiring activity amongst clients in some sectors. That said, the pace of increase was only mild.

September data pointed to sustained growth of temp billings across Scotland, extending the current sequence of upturn that began two years ago. The rate of expansion ticked up from August’s seven-month low and was solid overall.

The pace of increase in temp billings in Scotland was broadly in line with the trend seen for the UK as a whole.

Further marked drop in permanent candidate availability

The supply of permanent staff across Scotland continued to decrease in September, stretching the current sequence of contraction to 20 months. Skills shortages and high demand for staff reportedly drove the latest fall. Notably, the rate of decline quickened slightly on the month and was marked overall.

Scotland recorded a much sharper fall in permanent staff supply than that seen on average across the UK, with the pace of decline slowing slightly on the month at the national level.

Adjusted for seasonal variation, the Temporary Candidate Availability Index remained below the neutral 50.0 mark in September, signalling a nineteenth straight monthly deterioration in the supply of temp staff across Scotland and one that was rapid overall. Panellists cited strong demand for short-term workers and a reluctance among candidates to move roles. Although it remained much sharper than that seen at the national level, the pace of contraction was the slowest for six months.

Rate of starting salary inflation eases to 15-month low

September data signalled a sustained uplift in salaries awarded to permanent new joiners in Scotland, amid reports that strong demand for staff led to upwards pressure on pay. Though historically sharp, the rate of salary inflation was the slowest for 15 months, and weaker than that recorded for the UK as a whole.

A twenty-second monthly increase in hourly rates for short-term staff in Scotland was recorded in September. According to survey respondents, skills shortages were the primary cause of the latest rise. The rate of temp wage inflation softened to a four-month low, but was nonetheless sharp and outpaced the UK-wide average.

Permanent vacancies rise at slower rate

As has been the case in each month since February 2021, demand for permanent staff in Scotland increased in September. The rate of expansion was the softest seen for a year-and-a-half, albeit sharp by historical standards.

IT & Computing recorded the fastest rise in permanent vacancies, followed by Nursing/Medical/Care, while Hotel & Catering saw the slowest.

Temporary vacancies across Scotland continued to rise in September, extending the current sequence of growth to two years.  The rate of increase was the slowest since February 2021, but still sharp overall.

Across the monitored sectors, demand for temp staff was strongest in IT & Computing, followed by Accounts & Financial.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Permanent staff appointments across Scotland rose during September following a moderate fall in August, amid reports of improved hiring activity at clients in some sectors and strong demand for workers.

“The rate of growth was only mild, but nonetheless outpaced the UK-wide average. Temp billings also increased, with growth ticking up since August to a solid pace.

“The imbalance between staff demand and supply continued to place upwards pressure on pay in September.

“The latest survey showed that both permanent and temporary staff availability continued to decline sharply, which drove further increases in temp pay and starting salaries at rates seldom seen in the history of the survey.”

Scottish private sector suffers first contraction since February 2021

  • Output contracts during August amid quicker fall in new orders
  • Growth in employment moderates
  • Business outlook dampens, as confidence hits 27-month low

Scottish private firms registered the first contraction in 18 months, according to the latest Royal Bank of Scotland PMI® data.

The seasonally adjusted headline Royal Bank of Scotland Business Activity Index – a measure of combined manufacturing and service sector output – posted 47.8 in August, down from 50.2 in July.

Below the neutral 50.0 threshold for the first time since February 2021, the latest reading indicated a modest decrease in private sector activity. At the same time, inflows of new work fell for the second consecutive month, and that too at a quickened pace.

The drop in business requirements allowed firms to work through backlogs, resulting to capacity pressures easing for the third month running. Also, the rate of job creation measured the weakest in 16 months, signalling a slowdown in hiring activity.

On the flipside, weakening demand gave a respite to inflationary pressures; input prices rose at the weakest pace in seven months, while firms raised their charges at the second-slowest rate since January.

For the second consecutive month, a contraction was recorded in new business received at the Scottish private sector during August.

The rate of decrease quickened on the month as inflows of new orders received at service firms stagnated, while manufacturing companies noted a fourth running month of reduction. According to surveyed businesses, the downturn stemmed from weakening client demand, Brexit, the Ukraine-Russia war, and rising economic uncertainty.

Moreover, the pace of decrease registered across Scotland was stronger than that seen for the UK as a whole.

Expectations towards future activity at Scottish companies moderated during August. The level of positive sentiment dropped to a 27-month low. Rising recession risks, the cost-of-living crisis and declining demand all dampened the 12-month outlook.

Scotland registered weaker output expectations than Wales and all English regions except the North East, although it was more optimistic than Northern Ireland.

Scotland’s private sector firms raised employment for the seventeenth successive month in August. However, reduced business requirements resulted in a slowdown in hiring growth. The latest reading signalled the softest expansion in workforce numbers since April 2021. Firms also cited hiring difficulties amid a highly competitive jobs market.

The latest upturn across Scotland was softer than that at the UK level.

Backlogs of work at Scottish private sector firms fell in August for the third consecutive month. The rate of depletion quickened marginally on the month as the respective seasonally adjusted Outstanding Business Index was largely pulled down by a sharp drop seen across the manufacturing sector. Respondents noted that reduced order volumes and additional staff allowed them to clear away backlogs.

Overall, the rate of reduction was only marginally faster across Scotland than that seen across the UK as a whole.

Average cost burdens facing private sector firms in Scotland increased during August, thereby extending the current run of inflation to 27 months. While the rate of input price inflation recorded the weakest in seven months, it remained strong in the context of historical data. COVID, Brexit, the war in Ukraine and rising energy and raw material prices were all in part blamed for the latest incline.

As has been the case for the last 22 months, Scottish private sector firms continued to raise their charges during August. Thought the respective seasonally adjusted index posted the second-lowest in seven months, it remained comfortably above the long-run series average. According to panellists, the rise in charges reflected higher input costs.

Scotland registered the weakest increase in charges across all 12 UK areas monitored in August.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “August data signalled a deterioration across the Scottish private sector, as activity levels fell for the first time in 18 months. Moreover, weak client demand and rising economic uncertainty, with a threat of a recession looming, resulted in falling inflows of new business.

“The latest survey data did indicate some easing of upward pressure on input costs as a result of a reduction in client appetite. Nonetheless, inflation rates remained stubbornly strong.

“Moreover, the contraction across the sector impacted business confidence, which hit a 27-month low during August. Market uncertainties and the cost-of-living crisis heavily weighed on optimism and suggests a gloomy performance in the months ahead.”

RBS-Scotland-Jobs-report-Sept-2022-1Download

Royal Bank of Scotland Report on Jobs

Permanent staff hires fall for first time in 20 months

  • Permanent placements fall for the first time since December 2020
  • Temp billings growth softens to seven-month low
  • Sustained pressure on pay amid candidate shortages 

August data revealed a renewed fall in permanent staff hires across Scotland, according to the latest Royal Bank of Scotland Report on Jobs survey.

The seasonally adjusted Permanent Placements Index fell below the 50.0 no-change mark, to signal a modest drop in permanent staff appointments that ended a 19-month period of expansion. Growth in temp billings meanwhile moderated to a seven-month low in August. According to panellists, skills and candidate shortages weighed on hiring activity.

However, some recruiters also noted that an economic slowdown and rising market uncertainty added to the loss of momentum across the Scottish labour market. At the same time, demand for staff continued to rise, which drove further increases in both starting salaries and hourly wages. 

Permanent placements fall for first time since December 2020

Scottish recruiters reported a fall in permanent staff appointments during August, thereby ending a 19-month period of expansion. Anecdotal evidence suggested that the contraction stemmed from a slowdown in market conditions and candidate shortages.

Though only modest, the reduction in Scotland contrasted with the trend seen across the UK as a whole, which saw a slightly quicker increase in permanent placements in August.

Temporary staff billings across Scotland increased for the twenty-fourth successive month during August. Though solid, the rate of expansion eased to the slowest since January and was below its long-run average. The uptick in temp billings was in part attributed to increased activity at clients. Where a reduction was reported, panellists cited, lingering COVID-19 impacts and rising economic uncertainty.

Moreover, the rate of increase in Scotland was weaker than that seen across the UK as a whole.

Decline in permanent candidate availability weakest since March

August data highlighted a further reduction in the supply of permanent candidates across Scotland. The respective seasonally adjusted index has now posted below the neutral 50.0 threshold for the nineteenth month running. Acute skill and candidate shortages were linked to the latest decline.

However, though the extent to which permanent staff availability contracted was the slowest in five months, it remained sharper than the UK-wide trend.

The availability of candidates to fill temporary roles in Scotland continued to decline during August, stretching the current run of contraction that began in March 2021. However, the rate of deterioration eased for the third month running and was the slowest since March.

Compared to the UK-wide average, Scotland registered a faster fall in temp candidate availability for the fifth successive month.

Starting salary inflation remains elevated in August

Recruitment agencies across Scotland reported a twenty-first consecutive monthly rise in salaries awarded to new permanent joiners during August. The rate of starting salary inflation quickened fractionally from July and was sharp, albeit the second-softest in 13 months. According to Scottish recruiters, labour shortages drove up salaries.

However, Scotland continued to record a softer rate of increase in starting salaries than that seen at the UK level.

August data revealed yet another sharp increase in average hourly pay for short-term staff across Scotland. The latest uptick extended the current run of expansion to 21 months. Moreover, the rate of growth picked up from July and was the second-fastest since December 2021. According to anecdotal evidence, firms continued to raise wages to attract workers amid labour and skill shortages.

Temp pay also increased at a quickened rate at the UK level during August, albeit one that remained weaker than that seen in Scotland.

Softest increase in demand for permanent staff for 17 months

Adjusted for seasonal variation, the Permanent Vacancies Index posted above the neutral 50.0 level to signal a nineteenth successive monthly increase in demand for permanent workers across Scotland during August. Though sharp and well above the series average, the rate of growth was the weakest since March 2021.

Of the eight monitored sectors, Nursing/Medical/Care saw the strongest upturn in permanent staff vacancies, followed by IT & Computing.

Demand for temporary staff in Scotland rose for the twenty-third month in a row during August. The respective index indicated a strong increase demand overall that was unchanged from July. Notably, the rate of expansion continued to outpace that seen across the UK as a whole.

Engineering & Construction recorded the fastest rise in temp vacancies across the monitored sectors, followed by IT & Computing.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Since April, growth in permanent placements had softened, and now the latest data finally recorded the first fall in permanent staff hires in 20 months during August.

“A loss of momentum was also observed for temp billings, which rose at the softest pace since January. The weaker trends were accompanied by reports that rising economic uncertainty had limited recruitment activity.

“Moreover, labour supply and demand imbalances persisted. Acute skill and labour shortages weighed on the availability of candidates, while demand for labour continued to rise, albeit not as quickly as earlier in the year.

“With firms competing for labour, this resulted in further steep increases in starting salaries and temp wages during August.”

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Edinburgh is most expensive city for students

  • Edinburgh is the only UK city where student spend outweighs their income
  • Cardiff tops the Royal Bank Student Living Index as most affordable
  • Canterbury University most likely to be picked for subject choice, followed by Glasgow University
  • Glasgow University students report the highest levels of stress
  • Average student incomes have increased by 65% compared to 2021
  • Outgoing costs for students are 29% higher than last year

Edinburgh is now the most expensive place in the UK for students to live as revealed in the Royal Bank of Scotland Student Living Index. The index takes account of student spending and income to calculate a score for university towns and cities across the UK.

This year has shown that household bills have more than doubled for students with an average cost of £56.45 per month, with supermarket spending accounting for the single biggest monthly outlay at £76.29 each month.

Edinburgh has the highest cost of student living. Students in the Scottish capital have a monthly term-time income of £934, the lowest of all the cities ranked, whilst their total monthly spending is at £949. Edinburgh students are the least likely to combine studying and working during the academic term.

In contrast, Cardiff tops the list of UK cities for the best value for money. Below average rent prices combined with higher-than-average term-time incomes contributed to Cardiff being named the most affordable student city.  

Term time income for Cardiff students averages at £2241.65 and is the fifth highest of all the cities surveyed. They spend an average of £1,041 in total – the fourth lowest of all the cities in the Student Living Index.

The Royal Bank Student Living Index surveyed 2,964 students across the UK to determine the most affordable place to study. The survey accounts for factors such as how much students spend on going out to income through part-time work.

Oxford is now the most expensive place for a pint, with students expecting to pay £5.50 per drink, closely followed by London with an expected cost of £4.90. In comparison to Durham where students can expect to pay just £3.20 and Coventry at £3.40.

Students studying in London and Manchester were the most likely to rely on parents or family for income. London students received £295.10 more from this source than the UK average of £334.40 and those in Manchester £193.10. Compared to 2021, Oxbridge students are relying less on parents and family to pay rent and more so on bursaries and scholarships in 2022.

When it came to budgeting, over a third (35%) of students have found themselves running out of money by the end of term – 8% higher than in 2021. Just under one in five students said that they find managing their money stressful, and this the most pronounced in Coventry. Students in Cambridge are the most likely to put away month each month, 82% higher than the UK average.   

Perhaps in response to Covid-19 restrictions ending, compared to 2021 students are spending an average of 63% more on going out than the previous year.

A quarter of students felt that their universities do nothing to help with the ongoing cost of living crisis. Durham had the highest number of students who felt they had no support from their university at 56%.

Addressing the cost of living challenges, almost nine in ten (88%) students have made lifestyle changes to live within their budgets, with reducing the number of items bought online the most widely adopted change.

Changes to how students shop in the supermarket have also been a factor, with 46% saying they’ve swapped to own-brands. Meanwhile, 43% said they were buying fewer takeaways. 

Laura Behan, Head of Royal Bank Student Accounts said: “Despite the cost of living increasing dramatically, we’ve not seen that hit students quite as hard as may have been expected this year. Rents were set well in advance of the academic year and inflation increased much later into the academic year.

“However, with the cost of living increasing, especially as we look towards the start of the new university year in September, it is vital that students properly manage their finances. We offer a range of tools to help, including spend categorisation in our mobile app so students can see exactly where their money is going every month and a Round Ups tool to help develop a strong savings habit.”

The Royal Bank of Scotland student account offers a £80 cash incentive within the first 30 days of opening the account, a four-year tastecard membership and a £2000 interest free overdraft.

Royal Bank also offers free Financial Health checks to help students to organise their finances.

Find out more at www.rbs.co.uk/students  

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Royal Bank of Scotland seeks donations for Ukraine support at national welcome centre

  • Royal Bank of Scotland partners with The City of Edinburgh Council, Volunteer Edinburgh and other city partners to create a donation distribution hub supporting Ukrainian people arriving at Edinburgh HQ 
  • Thousands of people displaced by the war in Ukraine have arrived in Scotland and been supported at Gogarburn site so far. With visa holders yet to arrive[i], many more are expected to be supported. 
  • Donations urgently needed to continue providing essential items such as toothbrushes and waterproof clothing 

    Royal Bank of Scotland has set up a dedicated donation distribution hub for Ukrainian refugees arriving in the capital. 

The hub runs alongside the Welcome Centre for Scotland, which was created through a partnership between the City of Edinburgh Council and local partners, and hosted within Royal Bank’s Gogarburn headquarters.

Using funding issued by the Scottish Government to local authorities to support welcome efforts, the Welcome Centre opened its doors earlier this year to support those resettling in the country and has been the first port of call for thousands of displaced Ukrainian citizens. 

Staff from the City of Edinburgh Council are on hand to process entrance paperwork upon arrival, facilitate introductions with host families or find temporary accommodation for the many people who arrive without a place to stay.  

To allow families and individuals to settle into their new home quickly and begin to adjust to life in Scotland, paperwork is completed within the centre on the same day – meaning people can make necessary medical or legal appointments as soon as possible. Relevant literature is provided as part of a Scottish Government-produced welcome pack. 

Everyone arriving at the Welcome Centre is also offered an essentials pack made up of donations to help them settle in for the first few days. The packs contain day to day necessities such as toiletries, clothing, UK electrical adapters and toys for young children. 

With the number of displaced people to the centre increasing daily and supplies of essentials packs depleted, the donations hub is today issuing an urgent call, asking businesses and members of the public who are looking for a way to support the Ukrainian crisis to donate towards the cost of these essential items. 

The cost of each complete pack is around £30 and any donation will make a valuable difference, especially to those arriving with no belongings.  

Donations can be made to the GoFundMe[ii] set up by Volunteer Edinburgh, who meet the Ukrainian people arriving at the airport and bring them to the Welcome Centre, and also help to purchase the welcome pack items in bulk.  

An Amazon Wishlist[iii] has been set up to facilitate donations, where anyone wanting to support these efforts can buy individual items such as toothpaste, sanitary products, rain coats and hand sanitiser. These items are delivered directly to the hub and packed by volunteer staff.  

Businesses who would like to help can donate directly through the GoFundMe, via the Amazon wishlist or can send donations directly to the Royal Bank’s Gogarburn offices marked for the attention of Skillbank.  

Sheena Hales BEM, who leads the Skillbank at Royal Bank of Scotland said: “At the beginning of the pandemic, we recognised an opportunity to make use of our facilities and converted the conference centre at Gogarburn into a foodbank distribution hub, coordinating deliveries and offering storage space to charities including Social Bite and Cyrenians.  

“This charitable legacy has continued ever since, and we’re honoured to have set up the Skillbank to offer our skills and resources to help communities and people in their time of need. 

“While Edinburgh has welcomed many Ukrainian people to Scotland through the doors of the Welcome Centre, the reality is that we know there are many more coming who have fled the horrors of war, leaving their lives and loved ones to seek safety here in Scotland.

“While handing out items like a toothbrush or colouring book might seem like a small act, everything we can do to help people feel as welcome as possible is hugely important.  

“Currently we have used all of our existing essentials pack stock so any donation – big or small – is massively appreciated.” 

Minister with special responsibility for Refugees from Ukraine Neil Gray said: “The safety and welfare of displaced people from Ukraine, who are primarily women and children who may have experienced much stress and trauma, is of paramount importance to the Scottish Government.

“I want to thank people and businesses across Scotland for the huge groundswell of solidarity and support they have shown for the people of Ukraine. 

“On arrival, displaced people are given a ‘Warm Scots Welcome’ at the Welcome Hubs, where the Scottish Government is working in partnership with local government and the third sector to assess their needs and provide accommodation and meals along with emotional support and medical attention if required.

“The work undertaken by RBS and the other volunteer organisations in addition to this is extremely important, providing people with items to help them settle into Scotland.”  

City of Edinburgh Council Leader, Cammy Day said: “As I’ve said many times already, Edinburgh’s people and businesses have been absolutely outstanding throughout this crisis, offering their unwavering support to Ukrainian people fleeing their homeland in these most desperate of times. From volunteers meeting people on their arrival in Edinburgh, to getting help with accommodation and receiving ongoing support at our advice centre and within the local Ukrainian community, we’re here for them every step of the way. 

“I want to thank Royal Bank and their teams for their incredible support – for volunteering Gogarburn House to host our Welcome Hub, where it has run successfully since April, for repurposing their conference facilities to distribute food packages, for their co-ordination of thousands of guest backpacks, filled with nappies, toys, toiletries and other essential items, and for this latest fundraising drive to help gather much-needed donations.”  

Situated in Gogarburn, the Welcome Centre is ideally located to welcome those arriving into nearby Edinburgh airport.  

To support volunteers working within the centre, colleagues within Royal Bank have given up their time to become Executive Coaches – helping them to navigate the demands of their role and offering expert mentoring advice.  

Royal Bank has also worked with suppliers to extend its colleague-wide counselling service to offer staff and volunteers working with vulnerable individuals a confidential outlet and mental wellbeing support.   

“Money Mule Man” takes to the streets of Edinbugh

Comedian Paul Black has been out and about in Edinburgh as the “money mule man” to raise awareness of the fraudulent activity.

Money muleing is on the up since the pandemic and sees criminals recruit individuals – predominantly young people – to channel illicit funds via their bank accounts to create a fake paper trail.

Download the video to find out here: https://we.tl/t-iO0oehdLJB

Members of the public who stuck to their guns and said no were rewarded with £100, while those who fell for temptation and took the quick cash fix went home empty handed.

The consequences of acting as a money mule are severe, with those involved facing a prison sentence of up to 14 years and banned from having a bank account.

From Bad to Worse: Universal Credit families face another income cut

UP TO £660 PER YEAR COULD BE SLASHED FROM HOUSEHOLD INCOME

In a letter to the chancellor last week, the Bank of England stated that it expected inflation to be “around 8 per cent” this spring. With Universal Credit set to rise by just 3.1 per cent in April, families with children on universal credit now face a real-terms cut of around £660 per year, on average.

This is an increase on Child Poverty Action Group’s original analysis which showed a cut of £570, when inflation was expected to be 7.25 per cent.

The £20 cut to universal credit last October plunged out-of-work benefits to their lowest level in 30 years. Latest analysis shows that the picture for families is going from bad to worse.

Without government action, families will be pulled deeper into poverty. Increasing benefits by anything less than 8 per cent risks pushing those with already stretched budgets past breaking point.

Anti-poverty charities wrote to the Chancellor last week calling for a minimum 7% benefits rise:

Prices are rising at the fastest rate in 30 years, and energy bills alone are going to rise by 54% in April. We are all feeling the pinch but the soaring costs of essentials will hurt low-income families, whose budgets are already at breaking point, most.

There has long been a profound mismatch between what those with a low income have, and what they need to get by. Policies such as the benefit cap, the benefit freeze and deductions have left many struggling.

And although benefits will increase by 3.1% in April, inflation is projected to be 7.25% by then. This means a real-terms income cut just six months after the £20 per week cut to universal credit. 

Briefing_UC_Feb_2022_finalDownload

Child Poverty Action Group’s analysis shows families’ universal credit will fall in value by £570 per year, on average. The Joseph Rowntree Foundation has calculated that 400,000 people could be pulled into poverty by this real-terms cut to benefits.

The government must respond to the scale of the challenge. Prices are rising across the board. Families with children in poverty will face £35 per month in extra energy costs through spring and summer, even after the government’s council tax rebate scheme is factored in. These families also face £26 per month in additional food costs. The pressure isn’t going to ease: energy costs will rise again in October. 

A second cut to benefits in six months is unthinkable. The government should increase benefits by at least 7% in April to match inflation, and ensure support for housing costs increases in line with rents. All those struggling, including families affected by the benefit cap, must feel the impact.

Much more is needed for levels of support to reflect what people need to get by, but we urge the government to use the spring statement on 23 March to stop this large gap widening even further. The people we support and represent are struggling, and budgets can’t stretch anymore.

Alison Garnham, Chief Executive, Child Poverty Action Group

Emma Revie, Chief Executive, The Trussell Trust

Graeme Cooke, Director of Evidence and Policy, Joseph Rowntree Foundation

Morgan Wild, Head of Policy, Citizens Advice

Dan Paskins, Director of UK Impact, Save the Children UK

Imran Hussain, Director of Policy and Campaigns, Action for Children

Thomas Lawson, Chief Executive, Turn2us

Sophie Corlett, Director of External Relations, Mind

Dr Dhananjayan Sriskandarajah, Chief Executive, Oxfam GB

Caroline Abrahams, Charity Director, Age UK

Eve Byrne, Director of Advocacy, Macmillan Cancer Support

Kamran Mallick, CEO, Disability Rights UK

Katherine Hill, Strategic Project Manager, 4in10 London’s Child Poverty Network

Mubin Haq, Chief Executive Officer, abrdn Financial Fairness Trust 

Bob Stronge, Chief Executive, Advice NI 

Dr Ruth Allen, Chief Executive, British Association of Social Workers

Joseph Howes, Chief Executive Officer, Buttle UK

Helen Walker, Chief Executive, Carers UK 

Balbir Chatrik, Director of Policy and Communications, Centrepoint

Gavin Smart, Chief Executive, Chartered Institute of Housing 

Leigh Elliott, CEO, Children North East

Niall Cooper, Director, Church Action on Poverty

Lynsey Sweeney, Managing Director, Communities that Work

Anna Feuchtwang, Chair, End Child Poverty Coalition

Claire Donovan, Head of Policy, Research and Campaigns, End Furniture Poverty

Victoria Benson, CEO, Gingerbread 

Neil Parkinson, co-head of casework, Glass Door Homeless Charity

Graham Whitham, Chief Executive, Greater Manchester Poverty Action

Yasmine Ahmed, UK Director, Human Rights Watch 

Sabine Goodwin, Coordinator, Independent Food Aid Network 

Jess McQuail, Director, Just Fair 

Gemma Hope, Director of Policy, Leonard Cheshire

Paul Streets, Chief Executive, Lloyds Bank Foundation for England & Wales

Jackie O’Sullivan, Director of Communication, Advocacy and Activism, Mencap

Mark Rowland, Chief Executive, Mental Health Foundation

Chris James, Director of External Affairs, Motor Neurone Disease Association

Nick Moberly, CEO, MS Society

Anna Feuchtwang, Chief Executive, National Children’s Bureau

Charlotte Augst, Chief Executive, National Voices

Jane Streather, Chair, North East Child Poverty Commission

Tracy Harrison, Chief Executive, Northern Housing Consortium

Karen Sweeney, Director of the Women’s Support Network, on behalf of the Women’s Regional Consortium, Northern Ireland 

Satwat Rehman, CEO, One Parent Families Scotland

Mark Winstanley, Chief Executive, Rethink Mental Illness

James Taylor, Executive Director of Strategy, Impact and Social Change, Scope

Irene Audain MBE, Chief Executive Scottish, Out of School Care Network

Steve Douglas CBE, CEO, St Mungo’s 

Richard Lane, Director of External Affairs, StepChange Debt Charity

Robert Palmer, Executive Director, Tax Justice 

Claire Burns, Director, The Centre for Excellence for Children’s Care and Protection (CELCIS)

The Disability Benefits Consortium 

Dr. Nick Owen MBE, CEO, The Mighty Creatives

Peter Kelly, Director, The Poverty Alliance

Elaine Downie, Co-ordinator, The Poverty Truth Community

Tim Morfin, Founder and Chief Executive, Transforming Lives for Good (TLG)

UCL Institute of Health Equity 

Dr Mary-Ann Stephenson, Director, Women’s Budget Group 

Natasha Finlayson OBE, Chief Executive, Working Chance

Claire Reindorp, CEO, Young Women’s Trust 

Businesses in Scotland are also calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement tomorrow, according to a recent survey from Bank of Scotland.  

As inflation hits the highest levels seen since 1992, over half (55%) of Scottish businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor. This was followed closely by calls for a reduction in VAT, cited by two-fifths (40%), while almost a quarter of firms (23%) want increased funding to help create new jobs and develop skills. 

Rising prices remain a key challenge for business. Almost half (46%) of respondents said they are concerned about having to increase the costs of goods and services and over one in ten (14%) stated that inflation is reducing profitability. Almost one in ten (9%) said rising prices had caused them to worry about having to make staff redundant and a further one in ten (9%) were concerned about not being able to pay their bills. 

To help specifically with rising prices Scottish businesses are asking the Chancellor for a VAT reduction (46%), while a third (35%) have called for grants to cover rising energy costs. A further quarter (23%) called for grants to support investment in energy saving measures. 

The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (40%), causing hikes in freight costs (39%) and disruption through Rules of Origin and VAT requirements from EU suppliers (33%).

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Rising prices are causing multiple challenges for businesses across Scotland and the pressure from inflation shows no sign of abating in the near-term.  

“As we wait for the Chancellor’s Spring Statement, we’ll continue to remain by the side of business in Scotland and support the country’s ongoing economic recovery from the pandemic.” 

Responding to the ONS public sector finances statistics for February  Chancellor of the Exchequer, Rishi Sunak said: “The ongoing uncertainty caused by global shocks means it’s more important than ever to take a responsible approach to the public finances.  

 “With inflation and interest rates still on the rise, it’s crucial that we don’t allow debt to spiral and burden future generations with further debt.”

 “Look at our record, we have supported people – and our fiscal rules mean we have helped households while also investing in the economy for the longer term.”

All will be revealed when the Chancellor delivers his Spring Statement (Budget) at Westminster tomorrow.

Royal Bank reveals the true cost of splurging on fun after examining Scots spending priorities in 2022

  • Research from Royal Bank of Scotland reveals Scots spending priorities in 2022
  • Young people battling desire to splurge post-pandemic with need to budget for the future
  • Soaring energy costs identified as key concern

As the country begins to look at life beyond the pandemic, new research from Royal Bank of Scotland reveals that nearly half (42%) of young people surveyed in Scotland view spending money on fun as more of a priority post-lockdown.

Despite the renewed sense of freedom and recent relaxation of restrictions, young people are struggling with an internal conflict between the desire to enjoy life and pressures to save, with as many as 85% of 18 to 34-year-olds feeling guilty when splashing their hard-earned cash on themselves.

This is further compounded by social situations, where nearly two-thirds (63%) of 18 to 34 year-olds admit to feeling pressured by their friends to spend money – even when they feel they don’t have enough cash to spare.

Contributing to this feeling of guilt, just over half (51%) of those interviewed confessed that they don’t have a monthly budget set aside for having fun, with nearly eight in ten (79%) admitting that they will need to rethink their spending this year in the wake of energy price rises.

Respondents cited the pandemic – and prolonged periods of lockdown – as key motivators for their changing spending patterns. Almost two-thirds (63%) agree they’re happy to splurge if it means the chance to make memories with friends and loved ones, whilst a third (33%) are keen to make up for the experiences they lost during lockdown.

The findings suggest that the desire to spend more money in 2022, combined with a lack of budgeting confidence and the rising cost of living is mixing together to create a financial storm.

Addressing some of the key concerns raised in the survey, Royal Bank of Scotland is launching a new campaign to help young people balance their longing to make up for moments and memories lost to the pandemic, with the need to set realistic and achievable budgeting goals.

Backing the campaign to support young people, social wellbeing analyst and award-winning businesswoman Charlotte Armitage said: “Dealing with anxiety related to your personal finances is one of the most pressing challenges coming out of the pandemic.

“Financial goal setting can be an effective strategy against the struggle.  Momentum is critical and if you have a long-term savings goal, you need to break it down into manageable milestones, give yourself some easy wins and reinforce positive actions.

“After the past few years, it’s certainly okay to have fun and spend your hard earned money on yourself. Taking stock of your finances and getting a clear picture of your spending and saving will allow you to spot those areas where you can make small changes without sacrificing fun, allowing you to create memories and be confident about your financial future.”

Royal Bank is committed to improving the nation’s financial capabilities and will continue to offer every person in Scotland a free, judgement free Financial Health Check. The importance of such services is demonstrated in the research, with over one-fifth (22%) of respondents aged 18-34 citing a lack of knowledge as a reason why they don’t have a financial plan whilst almost one in five (19%) feel they are unable to afford a financial advisor.

Royal Bank is also encouraging customers to make use of new features available through its award-winning app such as the new ‘spending’ and ‘savings’ tabs, which allows customers to easily understand where their money is going and how they’re tracking against their goals.

Commenting on the findings, Malcolm Buchanan, Chair, Scotland Board, Royal Bank of Scotland, said: “It’s vitally important that we continue to listen to young people and understand the everyday challenges they face when it comes to managing their money.

“Whilst everybody’s financial situation is unique, it is through research and dialogue like this that we can design effective solutions and provide the tools to help make dealing with money easier for our customers.

“Royal Bank is committed to providing everyone with the support and skills they need to make responsible financial decisions, which in turn, will help them have fun and make memories.”

Royal Bank continues to make financial management easier and more accessible by providing the following:

·        Financial Health Check – A free 20-minute conversation with a banking advisor who provides guidance to make banking simpler, as well as tips for everyday spending and achieving future goals. This could include setting savings targets, advice on tracking monthly spending and creating budgets. Customers can choose to chat in a branch or over the phone. personal.rbs.co.uk/personal/financial-health-check.html

·        Royal Bank of Scotland app – Customers using Royal Bank of Scotland’s award-winning app are able to easily see where their money is going with the new ‘spending’ tab which will show them how much they’re spending by category each month, helping them stay in control of their money.

·        MoneySense – MoneySense provides parents and teachers with the tools to give young people the confidence to use money responsibly on their own. The programme is the longest-running bank-led financial education programme for young people in the UK. MoneySense is fully digital and downloadable, and can be delivered by teachers in schools.