Written evidence submitted by RSABI (COL0019)

Cost of Living: Impact on Rural Communities in Scotland – Feb 2023

RSABI Response

Background: RSABI is the registered Scottish charity (SCOO9828) which provides practical, emotional and financial support to all people involved in the Scottish agricultural industry. The service is available to those previously and currently involved in farming, crofting and occupations related to agriculture in Scotland. Individuals are encouraged to get in touch using our 24/7 freephone helpline, 0808 1234 555, to chat with one of our trained advisers to discuss how RSABI can support them. Contact can also be made by using webchat (available at www.rsabi.org.uk) or by emailing us directly.

We talk with people who live in rural Scotland every day and hear first-hand the challenges and anxiety they face due to the current cost of living crisis.

RSABI Support: One area of support that is available from RSABI is a Help for Heating grant which aims to help alleviate fuel poverty. Rural homes are traditionally older properties that are very often poorly insulated and at risk of using energy less efficiently due to being unable to retain heat.

We are aware that some clients are anxious about the cost of heating their homes and, in some cases, not turning their heating on due to fear of running up high bills or needing to make an expensive heating oil order. Our Help for Heating grant is a standard payment paid directly to households that meet the criteria of living in fuel poverty. In our current financial year (from April 2022) to date we have seen a 32% increase in our Help for Heating grant payments compared with 2021/22. This is partly due to increased demand but also caused by the need to increase our standard payments in some cases to upwards of £500.

Previously we may have typically made a financial contribution of £300 to go towards the total cost for a household to purchase a tank of heating oil and the household would make up the difference. However, since the cost-of-living crisis we have found that more and more households have been unable to make this contribution. As such, we felt it necessary to increase our payments to ensure that at least a half tank of heating oil could be purchased, especially during the cold winter months.              

Similarly, the Alternative Fuel Payment of £200, whilst gratefully received by rural households, would necessitate households making a substantial contribution of their own to purchase alternative fuel. This would leave many with the dilemma of still trying to access additional funds to part-fund a delivery as suppliers are likely to deliver a half tank at minimum which was being quoted upwards of £500. We have also had some feedback from clients who are confused about the how and when the Alternative Fuel Payment would be made. This lack of clarity made it difficult for individuals to plan and was a source of some anxiety.

Many of our clients who are self-employed and run their own farming businesses have also reported concerns about the significant increase of input costs, such as fertiliser, fuel, and livestock feed. This has understandably put pressure on profit margins and resulted in reduced income for many farming and crofting households throughout Scotland.

Increased demand for counselling: The volatility of prices and reduced disposable income is causing stress and anxiety amongst the agricultural community, along with a general concern about the uncertainty of the future of agricultural support. This may help to explain why we have seen a 156% increase in demand for our counselling grants so far in 2022/23. While, in some cases, there will be other factors behind this increase in demand, we have certainly supported many more people this year whose anxiety and stress has increased as a result of the cost-of-living crisis prompting them to get in touch for counselling support.

There is also concern that the current cost of living crisis is increasing isolation amongst our rural population. The farming/crofting community can live quite an isolated life due to the remote nature of the work they do and feedback from our clients suggests this has increased in the past year. We know some people are concerned about the cost of petrol/diesel (often much higher in rural areas) and are choosing to stay at home rather than travelling to see family/friends. We are also aware that in many cases the custom of older/retired farmers meeting up regularly at local auction markets has not restarted after COVID restrictions lifted, with increased travel costs a possible factor.

Unfortunately, there is still a reliance on cars in the majority of rural areas due to poor availability of public transport which would be more affordable. To support clients who are feeling lonely or isolated we offer an outbound support call service to ensure that they have some form of social contact. However, we remain concerned that increased isolation will exacerbate poor mental health in rural areas.

Contacts: Chris McVEy (Welfare Manager) - chris.mcvey@rsabi.org.uk

     Carol McLaren (Chief Execuitve) - carol.mclaren@rsabi.org.uk

February 2023