Written evidence submitted by Third Sector, Argyll and Bute (COL0010)
Sector Response to UK Parliament call for evidence on cost of living: impact on rural communities in Scotland
There are particular challenges facing Scotland’s rural communities in relation to the rising cost-of -living compared with other areas of the UK.
Even before the cost-of-living crisis emerged, those living in remote and rural areas like Argyll and Bute incurred higher costs. Examples of these are charges for the purchasing of everyday goods due to location, paying premium prices at times, and the well-documented high delivery charges for goods ordered online. A report by the Scottish Government in 2021 estimated that the minimum cost of living in remote rural Scotland was between 15% and 30% higher than urban parts of the UK. With real term inflation set to be between 17% & 20%, this leaves this area in a severely disadvantaged position. Rural communities also do not have access to many services locally. An example is NHS patients must travel to the central belt for hospital appointments for acute care, which can be very costly, possibly involving ferry travel and overnight accommodation costs. Argyll and Bute has a poor transport infrastructure so driving, often considerable miles, is expensive.
The UK Government cost-of-living support does not meet the needs of a rural population. Many households in Argyll and Bute are not connected to the gas grid, and are therefore often seriously impacted by fuel poverty due to reliance on more expensive heating types. An example of this is electric heating which can be extremely expensive coupled with restrictive meter tariffs. In 2020 it was reported that Argyll and Bute recorded one of the highest levels of fuel poverty in Europe, with approximately a third of households in fuel poverty or extreme fuel poverty. This data is well above the national Scottish or English average. Factors impacting are poor housing and insulation of an older housing stock, high energy prices, lack of mains gas, low wages, vulnerable demographics, bad weather and exposure. In addition, the area is the second largest local authority in Scotland, covering 9% of Scotland, and is particularly challenging as most of the area and nearly half of its population is classed as ‘remote rural’. Furthermore, many households are isolated, hard to access or located on one of the twenty-three inhabited islands. Cost-of-living support should have been allocated in a more focused approach to alleviate these challenges faced in our rural communities and tailored to meet the specific needs of these communities, taking into account the financial disadvantages.
In our research we have also discovered that there is also the issue of those living in accommodation where the last registered electricity provider is in a previous tenant's name. We continue to hear of multiple stories where many housing association tenants or those in forms of temporary accommodation are not receiving the £66 per month allowance. We are
also aware that homes who are classed as ‘off grid’ know little about the additional help we understand is available for homes within that category.
There are further steps the UK Government should take to support Scottish rural communities in relation to the cost of living, in particular about the voluntary sector in Argyll and Bute. Many services rely on the support of volunteers to maintain the services they provide, and volunteers are feeling the pressure of the cost of living. For example, volunteers who provide community transport can currently only claim 45p per mile tax free expenses. This figure has been set since 2011 and it would be beneficial to review this as it does not meet the costs of running a vehicle in 2023, There is deep concern that volunteers will no longer be able to afford to volunteer. This could have serious consequences for many of our communities who rely on such support.
The UK and Scottish governments should be working more effectively together to coordinate and provide support in relation to the cost-of-living for the people of Scotland. Clarity and communication are poor. There appears to be support for the lower income band to understand what support they can receive, but for the seemingly middle-income band the support available does not seem clear, and often excludes this group as they are viewed as ‘’wealthy”. However, in many cases this is illusory as they could be asset rich (i.e. the property they live in) but income poor.
* Evidenced from statistics and data from the following sources: The 2021 Scottish Government Poverty in Rural Scotland report - Poverty in Rural Scotland: A Review of Evidence (www.gov.scot)
The Argyll and Bute Council cost of living crisis case for support Corporate cost of living_4.pdf (argyll-bute.gov.uk)
A report from 2020 from ALIenergy, an organisation that works to promote sustainable energy use and renewable energy generation, to address fuel poverty and reduce carbon emissions. The 2020 report can be found here - ALIenergy News | ALIenergy
February 2023
Argyll and Bute Third Sector Interface
27A Front Street
Inveraray
PA32 8UY
Scottish charity No: SC029947 - Company SC277345