The Poverty Alliance – Page 3 – The NEN

First Minister to convene summit with energy suppliers and campaign groups

The First Minister will convene an urgent summit with energy supply companies and consumer groups later this month, to discuss how advice and support for people struggling with energy bills can be improved.

The summit will consider what collective action can be taken by government, energy companies and the third sector to help businesses and consumers access advice, and get support with debt issues.

Scotland’s major energy suppliers including Scottish Power, OVO Energy, Centrica, Octopus and E.ON, as well as industry bodies and key consumer and poverty organisations will attend.

The summit follows last week’s meeting of the Scottish Government Resilience Committee on the cost living crisis and will take place ahead of OfGem’s next energy price cap announcement on 26 August.

First Minister Nicola Sturgeon said: “I know that this is an incredibly unsettling time for households and energy consumers across Scotland and the Scottish Government will continue to do everything we can to support those affected.

“There is a not a single solution to this problem and government, industry and the third sector in Scotland needs to work collaboratively together to ensure the right support is in place for householders and businesses during this challenging winter. This could include improving the availability of help and advice and considering a more compassionate approach to debt management.

“However, it remains the case that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government.

“Only the UK Government can access and make available resources on the scale required. They need to take action, now. As I said last week, a first step would be to cancel the energy price cap rise this autumn.”

Peter Kelly, Director, The Poverty Alliance said: “We are pleased that the First Minister will be convening this summit of energy companies, along with the Poverty Alliance and Energy Action Scotland.

“Across the country, people are increasingly being swept up amid a rising tide of hardship. But with the energy price cap due to increase in October, that tide threatens to become a flood.

“Households up and down Scotland are terrified of what the colder months will bring and the likelihood is that – without further action – lives and life chances will be at risk. The situation could scarcely be more urgent.

“But it is a situation we can do something about, by taking action to protect people most at risk of poverty and deeper hardship. It is that much-needed and urgent action that we are hoping the summit can bring about.”

Frazer Scott, CEO of Energy Action Scotland said: “With our colleagues at the Poverty Alliance, we welcome the First Minister’s intervention in gathering energy companies together to talk about how we can best support households struggling to afford spiralling energy bills.

“Fuel poverty will affect over one million Scottish households this winter requiring urgent intervention focussed on targeting those most in need.

“Cold, damp homes affect health and wellbeing and will put thousands of lives at risk as well as adding additional pressure to the NHS, making this a vital intervention for Scotland.”

The Scottish Government estimates that 906,000 or 36% of all households will be in fuel poverty in October 2022, based on an Ofgem price cap of £2,800 and taking into account previously announced government mitigations.

£150 cost of living payments for hard-pressed Scottish households

2022-2023 Scottish Budget Bill passed by MSPs

Finance Secretary Kate Forbes announced a further £290 million in financial support to help address the rising cost of living at Holyrood yesterday.

Ms Forbes said that while the Scottish Government is awaiting final confirmation from the Treasury on funding allocations, the £290 million for Scotland announced by the Chancellor of the Exchequer last week is not likely to mean net additional funding. This is due to an expected reduction of a similar amount in other consequential funding previously anticipated through the forthcoming UK Government Supplementary Estimates.

Despite these budget pressures and existing support in place to help people, Scottish Ministers have honoured the commitment to allocate £290 million to help tackle the cost of living crisis and are going further to ensure those hardest hit have support.

New measures announced include:

£280 million to provide £150 to every household in receipt of Council Tax Reduction in any Band and to provide £150 to all other occupied households in Bands A to D. This means 1.85 million households, or 73% of all households, will receive financial support through their council tax bill or a direct payment
£10 million in 2022-23 to continue the Fuel Insecurity Fund to help households from rationing their energy use

This is in addition to the £120 million previously announced for local government in 2022-23.

A further £39.5 million has also been allocated to businesses from the £375 million of Omicron business support funding for the current financial year. Following consultation with businesses, who asked for financial support to now focus on economic recovery, this funding will help support local economies and cities continue their economic recovery and help build a more resilient economy.

Funding allocated includes:

£16 million for culture and major events
£7.5 million to support inbound tour operators
£6.5 million to support the childcare sector
£3.5 million for outbound travel agents
£3 million for city centre recovery
£3 million to help digitalise SMEs to increase competitiveness, productivity and drive growth

Ms Forbes said: “Large rises in energy bills, increased costs on every day essentials, rising interest rates and the UK Government’s new National Insurance hike are causing huge concern and worry, and people are struggling. These additional costs will hit the most vulnerable in our society, the hardest.

“That is why we will honour our commitment, whatever other Budget challenges we face, to pass on the full £290 million to help families now. I am therefore today announcing that there will be three elements to the package of support today.

“Firstly, we will provide £150 to every household in receipt of Council Tax Reduction in all Council Tax bands. The Council Tax Reduction Scheme already identifies households in greatest need and will allow us to target this intervention.

“Secondly, I will provide local authorities with funding to pass on £150 to other occupied household in Bands A to D in Scotland. In total, combining these elements, 1.85 million, or 73% of all households, will receive £150 of support. I know that the cost of living crisis is affecting households who are not in receipt of benefits, who are not claiming a Council Tax Reduction. And they are facing hardship too. We must seek to do what we can to prevent those households and families on the edge of the poverty line, from falling over it.

“Thirdly I am also announcing £10 million in 2022-23 to continue our Fuel Insecurity Fund to help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs.

“Households across Scotland, across the UK, are struggling with the wide range of rising costs and many of the macro levers, for example, around energy regulation reside with the UK Government. That is why I will be writing to the Chief Secretary to the Treasury, again highlighting that we must work together urgently so we can use our joint powers to do more to tackle the cost of living.”

Responding to the Budget announcement Peter Kelly, Director of the Poverty Alliance, said: People across Scotland are feeling the grip of poverty tighten on their lives. But the measures announced today by the Scottish Government in response to the cost of living crisis do not do enough to target support at people on the lowest incomes.

A Fairer Future?

Recovery strategy to help those hardest hit by Covid

People who have suffered the most as a result of the pandemic will be at the heart of Scotland’s Covid recovery strategy, the Scottish Government says.

For a fairer future sets out the next steps in Scotland’s recovery from the pandemic, recognising that while the pandemic has affected every area of life in Scotland, those who were already struggling have been hardest hit by its effects.

The strategy aims to address systemic inequalities made worse by Covid, improve people’s wellbeing, and remobilise public services to be more focused on people’s needs, building on lessons learned during the pandemic.

Actions to achieve this will include upskilling and retraining opportunities for workers impacted by the pandemic and the transition to net zero, help for low income families most at risk of poverty, and locally-based mental health and wellbeing support for children and young people.

While the strategy is focused over the next 18 months, it includes a series of actions over the course of this Parliament to deliver substantial improvements in child poverty, make significant progress towards net zero, and secure an economic recovery that is fair and green.

Deputy First Minister and Covid Recovery Secretary John Swinney said: “The impacts of this pandemic have not been felt evenly with the most disadvantaged suffering disproportionately from the virus, and the social and economic effects of lockdown restrictions.

“For that reason, our recovery must go further than how life was before Covid. This strategy sets out how we will do that, working with local government, the third sector, and businesses large and small.

“It is the product of months of engagement with a variety of individuals and organisations representing sectors across the country, including the Citizen’s Assembly and the Social Renewal Advisory Board.

“The experience of the past 18 months has shown us what can be achieved when we look past traditional barriers to get the right service or support to people when they need it.

“By working together with the same energy, imagination, and urgency as we approached the pandemic, we can drive a recovery that delivers more for all of Scotland.”

COSLA President Councillor Alison Evison said: “I welcome the publication of this strategy and its vision, which has many parallels with the COSLA Blueprint.

“Covid-19 has had an immeasurable impact on communities across Scotland and although we continue to respond to the many challenges it presents, we must also take the necessary action to address inequalities in our society that have only worsened as a result of the pandemic.

“Local Government will be at the heart of recovery, just as we were in response to the pandemic. Recovery is a shared endeavour that requires us all to work together to address the areas of greatest harm resulting from the pandemic, and deliver an inclusive and green recovery for all of Scotland.

“We look forward to working with the Scottish Government to deliver on a collaborative approach to recovery that is at all times rooted in the needs of the people that we serve.”

Peter Kelly, Director of the Poverty Alliance, said: “The levels of poverty and inequality in Scotland made the impact of the pandemic so much worse than it might otherwise have been. Insecure and undervalued employment, social security benefits that were inadequate and ingrained inequality all meant that some communities bore the brunt of Covid.

“As we look towards the end of the pandemic, it is right that the Scottish Government prioritises a recovery that addresses these underlying inequalities. Focusing on the creation of a wellbeing economy, tackling poverty and investment in social security, housing and decent public services is to be welcomed. Delivering on these priorities and retaining this focus on addressing inequalities must drive our recovery to Covid.”

Louise Macdonald OBE, National Director of the Institute of Directors Scotland said: “A strong, sustainable wellbeing economy and a fair, equal society are interdependent. We welcome the clarity in this strategy that a thriving economy underpins a successful recovery, especially in making the difference for those greatest affected by poverty and inequality.

“Leaders from business and cross-sector organisations in communities in every part of Scotland have played a vital part in the response to the pandemic in a myriad of ways and it is that spirit of collaboration, innovation and purpose – through collective effort and shared vision – which will deliver this ambitions of this strategy.”

Andrew McRae, Policy Chair of the Federation of Small Businesses Scotland said: “Scotland’s recovery from the Covid crisis won’t be possible without economic recovery.

“Smaller businesses have an impressive track record of creating jobs and healing communities after economic shocks – so they must be at the heart of implementing this welcome recovery plan.

“We’re looking forward to working with the Scottish Government to ensure delivery of these plans is designed with small and new start businesses, as well as the self-employed, front and centre.”

Covid Recovery Strategy: For a fairer future – gov.scot (www.gov.scot)

First Minister urged to put wellbeing at the heart of economic recovery

Poverty Alliance and Wellbeing Economy Alliance have written to the First Minister to urge her to task the recently appointed Advisory Group on Economic Recovery with putting social justice at the heart of their work.

Their letter says:

Dear First Minister,

Economic Recovery and Covid-19

Since the start of the Covid-19 crisis, we have witnessed in action the values that we all share. We have seen the compassion, kindness and solidarity that will be required to make it through this crisis.

But we have also seen that our economy is failing to live up to these values. Our social security system and labour market have failed to protect too many of us: particularly women, disabled people and people from black and minority ethnic communities.

It is clear that as we move through and beyond the current phase of the crisis, we must commit to redesigning our economy and systems to better reflect our shared values of compassion and justice. Instead of returning to the economy we had going into the Covid-19 crisis, we must build back better by creating a wellbeing economy that puts our collective wellbeing first.

We therefore welcome that the Scottish Government’s Covid-19: framework for decision making recognises the need to look at the “social and economic reforms necessary to achieve the best future for Scotland” and commits not to repeat the mistakes of austerity.

This commitment is most welcome but must be made real.

In the months ahead we urge you to maintain your ambitious climate agenda to ensure the post-Covid-19 economy is a sustainable one, and to ensure it is socially just we urge you to prioritise:

Building a labour market that works for everyone: Too many people, particularly women and younger people, are trapped in poverty by low-paid and insecure work. Fair Work has been central to the Scottish Government’s approach to labour market policy, but more must be done to make it a reality for workers in Scotland.
Designing a more just taxation system: While this crisis is impacting every person across the country, the disproportionate impact on people on low incomes has highlighted the very real consequences of our deeply unequal society. It cannot be right that the wealthiest 1% of households in Scotland own more wealth than the poorest 50% at a time when almost 1 in 4 children are living in poverty. We must inject justice and fairness into our taxation system.
Securing adequate incomes for all: We have seen positive steps taken by the Scottish Government as it has started to deliver social security assistance. However, Covid-19 has highlighted that this support must not only be dignified, but should help deliver an adequate income too. The Scottish Government must use its powers creatively and to their fullest extent to ensure that our social security system can keep any one of us afloat during difficult times.

Even at this moment of crisis we must begin the task of investing in a better future, to ‘build back better’, with every policy decision we make helping us move towards a just society that’s in step with our values.

We must not return to the pre-Covid 19 economy that locked so many people into poverty.

The Advisory Group on Economic Recovery must not, therefore, simply seek to replicate the unsustainable and unjust economy that went before.

Instead, it must focus on the steps we can take to create an environmentally sustainable economy that ensures a just distribution of income and wealth.

We urge you to task the recently appointed Advisory Group on Economic Recovery with putting social justice at the heart of their work. In doing so the Advisory Group should liaise with the Poverty and Inequality Commission and the Just Transition Commission and collaborate with existing Wellbeing Economy Governments (WEGo) partners to show leadership in creating a wellbeing economy.

This time calls on us to reflect on the kind of country we want to live in. We believe in a Scotland in which wealth is justly distributed, our life chances are not determined by how much we earn, where our labour market guarantees Fair Work for every worker, and where everyone has enough money to get by.

We hope you share this vision and will take the decisions in the weeks and months ahead to make it a reality.

We would welcome an early discussion with you regarding the role of the Advisory Group, as well as the broader concerns of our members regarding the long-term social and economic reforms we require.

Yours sincerely,

Peter Kelly, The Poverty Alliance
Dr Katherine Trebeck, Wellbeing Economy Alliance