Somerset Council declares cost-of-living emergency
Th authority is calling on the Government to take immediate action to reduce the impacts on residents
Somerset County Council has declared a cost-of-living emergency and is calling on the Government to take immediate action to reduce the impacts on local people.
At a meeting of Full Council yesterday, Councillors discussed the ongoing cost-of-living crisis which has seen household bills soar to the highest levels in history.
Councillors voted for the Chief Executive to write to Government and ask them to:
• Immediately reduce the standard rate of VAT from 20 per cent to 17.5 per cent for one year, saving the average household in Somerset a further £600 this year.
• Immediately re-introduce the pensions triple lock to support Somerset’s pensioners.
• Immediately restore the Universal Credit supplement of £20, which was cancelled by the Government in September 2021.
Councillors also committed to joining other local councils and key stakeholders, including Citizens Advice, Food Banks, Trade Unions and Chambers of Commerce at a Somerset Cost-of-Living Emergency Summit. MPs will also be invited to attend.
After an amendment, it was agreed to establish a proportionally representative cross-party working group to recommend to the Executive and November Full Council other practical steps that the Council can take to alleviate the impact of the cost of living on the most vulnerable.
Somerset County Council’s Lead Executive Member for Communities, Cllr Federica Smith-Roberts, said: “The cost of living has soared in recent weeks and many people are deeply concerned about how they will pay their bills this winter. We will continue to provide support for our most vulnerable residents but food and heating are not luxuries and we have a duty to lobby the Government to do more in response to a very real emergency.”
A second motion was also carried, calling on the Chancellor to ensure the planned household energy bill rebates are available to all, including renters and those who rely on pre-payment meters. Somerset MPs will be asked to lobby Government to increase the cost-of-living payments available to sick and disabled people with immediate effect.
Anyone in Somerset who is struggling to pay the bills this winter can seek help through the Household Support Fund administered by Somerset County Council, as well as Somerset Community Foundation’s Surviving Winter campaign.
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.