Poverty report paints 'bleak picture' of society in crisis
Anti-poverty campaigners are calling for action as a "heart-breaking" report revealed a "bleak picture of a society in crisis".
Anti-poverty campaigners are calling for action as a "heart-breaking" report revealed a "bleak picture of a society in crisis".
The new report from the Joseph Rowntree Foundation (JRF) found that nearly one in five households on low incomes in Scotland have gone both hungry and cold this year.
The Poverty in Scotland report includes data from a survey by Savanta ComRes of 4,196 Scottish households in July and August this year.
People are "desperately" cutting back
It found that people are "desperately" cutting back, with nearly two in three respondents (65%) saying they have cut back on an essential, while one in four (26%) have cut back on three or more essentials.
Researchers found that the cost-of-living crisis is affecting people's mental health, with three in four families with a child where someone has a disability and four in five families with a baby saying it was having a negative impact.
The JRF is calling on the the Scottish and UK Governments to focus on two areas for urgent and significant action.
The charity urges them to protect low-income households from unaffordable costs in the coming months and to prevent the worst impacts of the crisis from ever happening again.
"They've failed to insulate people from the worst"
It comes after Chancellor Kwasi Kwarteng announced a £45 billion package of tax cuts in his mini-budget late last month, which caused havoc in financial markets.
Chris Birt, JRF associate director for Scotland, said: "Taken with the work of others across the third sector, the picture provided by this report is clear and heart-breaking.
"This huge survey and the lived experience of people living in poverty must be heard. We wonder how the politicians who completely overlooked these people in the recent mini-budget can stand by their actions. Or can they now admit they've failed to insulate people from the worst?
"With that in mind it is shocking and morally indefensible to hear the UK Government just this week suggesting that they may not do what Rishi Sunak promised and uprate benefits by inflation next April as usual.
"This will mean yet another devastating blow, after a decade of sucker-punches, to the finances of people on the lowest incomes, and will cause extra terror and hardship for people who are already struggling to put food on the table and stay warm.
A third of those surveyed said they have either no savings
"While the UK Government's immoral abandonment of those who need the support most is indefensible, people are now looking to the Scottish Government for support and they deserve no less."
The JRF said the report "paints a bleak picture of a society in crisis".
The report also found that around a third of those surveyed said they have either no savings or their savings were less than £250, while more than one in five (23%) people said they felt their household financial situation was very insecure.
Scotland's Social Justice Secretary Shona Robison said: "Tackling child poverty is a national mission and we are doing everything we can within our limited powers and fixed budget to support those who need it.
"We have allocated almost £3 billion in this financial year to contribute towards mitigating the cost-of-living crisis and almost a third of this support is only available in Scotland.
"Yet at the same time as we focus on providing direct financial support to people on the lowest incomes, UK Government policy undermines this.
"For example, if welfare reforms introduced since 2015 were reversed, this would put £780 million into the pockets of Scottish households and lift 30,000 children out of poverty in 2023-24.
All households will receive £400 towards energy costs
"The UK Government's reckless mini-budget, borrowing to cut the top rate of tax, will plunge millions of households into financial uncertainty and require a squeeze on public spending while benefiting the very rich."
She said that the Scottish Government is "prioritising action to help households in need".
A UK Government spokesman said: "Latest figures show there were two million fewer people in absolute poverty after housing costs than in 2009/10, including 500,000 fewer children and 400,000 pensioners.
"But we recognise people are struggling with rising prices which is why we are protecting millions of the most vulnerable families across England, Scotland and Wales, with at least £1,200 of direct payments and saving households an average of £1,000 a year through our new Energy Price Guarantee.
"Through our £37 billion support package we are saving the typical employee over £330 a year through a tax cut, allowing people on Universal Credit to keep £1,000 more of what they earn, while all households will receive £400 towards energy costs.
"Around £237 million has also been made available to devolved governments to spend at their discretion.
"This is in addition to the significant income tax and welfare powers they already have."
Cost of Living Crisis
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.