Written Evidence

Written evidence submission by Inclusion Scotland (COL0023)

Response to Scottish Affairs Committee Call for Evidence on the Impact of the Cost of Living Crisis on Rural Communities in Scotland

Inclusion Scotland is a ‘Disabled People’s Organisation’ (DPO) – led by disabled people ourselves. Inclusion Scotland works to achieve positive changes to policy and practice, so that we disabled people are fully included throughout all Scottish society as equal citizens.

We are an independent, non-party political, representative organisation of disabled people across Scotland with a network of over 50 Disabled Peoples' Organisation (DPO) members, and partner organisations. We reach thousands of disabled people across Scotland, many of whom experience profound exclusion and intersectional barriers to participation in society.

Introduction

1.1.           The Scottish Government’s recent Analytical Report into the cost of living crisis in Scotland identifies both “households with a disabled person” and “households in rural and island communities” as most negatively affected by the cost of living crisis, noting that intersecting these identities and circumstances can compound the negative effects of rising prices.1

1.2.           Disabled people are already much more likely to be living in poverty in Scotland and are caught in the middle of the current cost of living crisis. Once the additional cost of disability has been factored in, 28% of all those living in poverty in the UK are disabled people. A further 20% of those in poverty live in households containing a disabled person. Therefore, nearly half (48%) of all the people living in poverty in the UK are disabled or live with a disabled person.2

1.3.           In 2018 Scope found that Scots disabled people spent on average £632 a month on disability-related expenses (e.g., taxis, increased use of heating, special equipment, care costs). One in five disabled adults face additional costs of over £1,000 a month. These are the highest excess costs in the UK.3

1.4.           Inclusion Scotland surveyed disabled people from 29 August 2022 until 26 September 2022 about their experiences of the cost of living crisis. The survey received 168 responses. Disabled people across Scotland were ‘worried sick’ that

1 Scottish Government (Nov 2022) The Cost of Living Crisis in Scotland: An Analytical Report

2 Disability Rights UK (2020) highlighting JRF research findings

3 Scope (2018) The Disability Price Tag: Technical Report

they will not survive the winter. Over 75% of respondents to this survey were currently going without or cutting back on essentials like food or heating, with many disabled people also cutting back on energy use essential to living with a disability. Disabled people were fearful that they will be hospitalised or will die at home this winter.4

1.5.           At the same time, it has been calculated that rural and island communities can face a 15-30% higher cost of living due to increased prices of goods and services and different patterns of behaviour to combat remoteness, compared to communities in urban areas of the UK – even before accounting for domestic energy costs. 5

1.6.           Bespoke research into the standard of living of disabled people in rural locations and the specific challenges they face, is lacking. However, through our members across Scotland we are able to understand some of their experiences. This includes their contributions to our Poverty Lived Experience Group, our recent Conference, and survey responses.

1.7.           In this evidence, we draw together research findings regarding disability, rurality and the cost of living to argue that disabled people in rural locations are being hardest hit in ways that the current response from UK and Scottish Governments have not adequately addressed.

1.8.           This submission focusses on three factors – energy, transport, and food - where the evidence suggests disabled people in rural communities are being disproportionately affected by rising costs. The submission then examines the policy responses – looking at the cost of living payments, social security uprating, the package of assistance for domestic energy, cold weather payments, and warmer homes discount – as these present opportunities for a cash-first, human rights based response to the crisis.

Cost of Living Pressures for Disabled People in Rural Communities

2.1.           Energy costs

• Energy costs are disproportionately high for disabled people for several reasons including: needing warmer homes to manage pain, neurological conditions, energy impairments or mental health problems; needing to run equipment essential to independent living such as stairlifts and powerchairs; needing to run life-saving equipment such as ventilators and dialysis machines; additional laundry because of continence issues and higher use of home appliances.6

• A much higher proportion of disabled people are unemployed and thus at home all day at a time when others may have opportunities to reduce their energy use. This is likely to be compounded in rural locations where physical isolation and/or

4 Inclusion Scotland (Dec 2022) Cost of Living Crisis: What’s the Impact on Disabled People?

5 Scottish Government (Sep 2021) The Cost of Remoteness: Reflecting higher living costs in remote rural Scotland when measuring fuel poverty

6 House of Common Library (Jan 23) Rising Cost of Living in the UK

a lack of accessible public transport may further restrict a person’s ability to leave the home or access other facilities.

• The rising cost of domestic energy has therefore had a dramatic effect on disabled people. A UK-wide survey by the Resolution Foundation found that by the end of November 2022, two-fifths of disabled people (41%) couldn’t afford to keep their homes warm (almost twice the share of the non-disabled population) and nearly half (48%) have cut back on energy use.7

• Disabled people who live off-grid, and use alternative fuels such as heating oil, gas canisters or solid fuels, are facing particular financial pressure. Even before the current cost of living emergency, approximately 100,000 off-gas-grid households were considered to be in fuel poverty in 2019, representing a fuel poverty rate of 34%. The vast majority (250,000 out of 280,000) of these households live in Scotland’s island or rural communities.8

• As the solid fuel market is unregulated, consumers are left exposed to higher fuel costs, with oil prices fluctuating daily. Added to this, those who use off-grid fuel need to pay upfront, and normally for a fixed minimum amount to guarantee delivery, for example, for oil this is 500 litres, which currently equates to over

£500.

• People living in rural areas are more likely to be living in extreme fuel poverty than those in other parts of Scotland, as evidenced in the Scottish House Condition Survey: 2017-2019. Extreme fuel poverty is where a household is spending more than 20% of its net income (after housing costs are deducted) on fuel. Seven local authorities had significantly higher extreme fuel poverty rates than the national average, these were: Na h-Eileanan Siar (24%), Orkney Islands (22%), Shetland Islands (22%), Highland (22%), Argyll and Bute (19%), Moray (19%) and Perth and Kinross (18%). All of these local authorities had a greater prevalence than average of lower energy efficient properties (those rated EPC F or G).9

• This evidence suggests that the impact of the cost of living crisis on disabled people living in rural locations has been particularly challenging, given the likelihood of a number of vulnerabilities compounding: higher energy usage, less efficient homes, more expensive fuels, and soaring energy costs.

2.2.           Transport costs

• The cost of transport has risen significantly alongside the price of fuel, meaning that households that spend disproportionately more of their income on transport are most vulnerable to rising prices. Evidence suggests that this includes both disabled people and those in rural locations.

• Research into variation in the minimum income standard for remote communities found that the section of a household budget that increased the most compared to UK urban locations, was transport. In 2019, rural households

7 Resolution Foundation (Jan 2023) Costly Differences: Living standards for working-age people with disabilities

8 Scottish Government (Nov 2022) The Cost of Living Crisis in Scotland: An Analytical Report

9 Scottish Government (Feb 2021) Scottish House Condition Survey 2017-2019: Local Authority Tables

in Scotland spent, on average, £135 per month on transport (26% more than urban households).10

• In addition, disabled people who live in rural and island locations may have additional transport costs compared to their non-disabled counterparts including health appointments, specialist support further away from home, and needing to travel to accessible venues rather than the closest options.

• The Scottish Government recent Analytical Report reported that: “Wave 23 of Transport Scotland’s Public Attitude Survey (July 2022) found that 32% of respondents were struggling to afford their travel costs – an increase of seven percentage points compared to the previous wave of the survey undertaken in May.” Importantly, those with a long-term limiting health condition or disability were more likely to say they were struggling to afford their travel costs.11

• However, public transport options in rural communities are often inadequate for disabled people’s needs with a unacceptably low level of service for rural communities and additional accessibility barriers for disabled people attempting to use busses, ferries and even taxis.

2.3.           Food costs

• Food prices have risen dramatically in recent months, and this has had a significant impact onhouseholds that include a disabled person. According to the Resolution Foundation, 31% of disabled people say they have had to reduce their expenditure on food, compared to 18% of the non-disabled population. 20% of disabled people are now experiencing moderate or severe food insecurity, up from 8% before the pandemic.12

• Prior to the cost of living crisis, research into the minimum income standard for remote communities showed that consumers in rural and island locations can pay a premium to access food. While it was shown that superstores in regional towns did not vary price greatly from those in urban centres, “baskets priced at small local stores, either Co-ops or independent village shops, continued to show much higher prices than supermarkets. For example, at local community stores, the priced food baskets were 44% higher on the mainland and 27% higher on islands than the equivalent in a supermarket”.13

• As discussed above, due to the unaffordability of private transport and unavailability or inaccessibility of public transport, disabled people are more likely to be dependent on these smaller, more local shops, and therefore be paying a much higher price for food.

• We also know that many disabled people in urban locations find online grocery shopping an accessible alternative to supermarket shopping, but this option is

10 Scottish Government (Sep 2021) The Cost of Remoteness: Reflecting higher living costs in remote rural Scotland when measuring fuel poverty

11 Scottish Government (Nov 2022) The Cost of Living Crisis in Scotland: An Analytical Report

12 Resolution Foundation (Jan 2023) Costly Differences: Living standards for working-age people with disabilities

13 Scottish Government (Sep 2021) The Cost of Remoteness: Reflecting higher living costs in remote rural Scotland when measuring fuel poverty

not always available in remote locations or may include a prohibitive delivery charge.

• In addition, we know that a disproportionate number of those accessing foodbanks are disabled people or those who live in a household with a disabled person.14 In rural locations, these forms of support are less available and less easy to access, especially for some disabled people. This may leave some without access to a vital source of support.

• These barriers may prevent disabled people from accessing the specialist diets they need to manage medical conditions and therefore have a significant effect on their health and wellbeing.

• As such, disabled people living in rural locations face a number of additional challenges in accessing food because of the cost of living crisis increasing the price of goods and services.

Adequacy of Policy Responses to Date

3.1.             Social Security Uprating

• Both Scottish and UK Governments have committed to uprate benefits, including disability benefits, by the September 2022 rate of inflation (10.1%) in April 2023. While this increase is welcome and will put much-needed cash into the pockets of disabled people, it has come too late and not enough has been done to bridge the gap.

• As the House of Commons Library explains: “Under this practice, when inflation is stable, benefits broadly retain their value in real terms over the course of the year. However, when inflation rises for prolonged periods, the time lag between the September measure of inflation and the increase to benefits the following April can result in real terms reductions”.15

• By the time the social security uprating is introduced, benefit claimants will have faced several months of rapidly rising prices with no increase to their benefits payments,

3.2.           Cost of Living Payments

• The UK Government also delivered a £150 Cost of Living Payment in Autumn 2022 which will be followed by a second payment of the same amount in Summer 2023, for those claiming additional cost disability benefits.

• For many, the Cost of Living Payment will not compensate for the additional pressure on household budgets created by the delay in benefit uprating (and for those who were subsequently made ineligible for the Warmer Homes Discount, this payment represents no additional support, see below).

14 Trussell Trust (2017), Financial insecurity, food insecurity, and disability: The profile of people receiving emergency food aid from The Trussell Trust Foodbank.

15 House of Commons Library (Sep 2022) Blog: The impact of high inflation on benefit claimants

• The Cost of Living Payment does not take into account the differences in additional costs faced by various disabled people, including those in rural communities whose disability and location may intersect to create vastly inflated living costs.16

3.3.           Domestic Energy Assistance

• The Energy Price Guarantee has provided a degree of protection during the 22/23 winter months, but as this cap will expire in April, many disabled people facing higher impairment-related energy costs may be left unprotected from the end of March.

• In addition, the price of oil and other alternative fuel sources remain unregulated and uncapped, leaving many in rural locations subject to exorbitant prices compared to those living in on-grid properties.

• Similarly, the Energy Bill Support Scheme of £400 per household bolstered the domestic energy accounts of many disabled people but will not have had the same impact for those households without a conventional gas and electricity account.

• The addition of the Alternative Fuel element of up to £200 per household17 to this scheme is welcome, but with applications due to open this January and delayed till at least the end of February, it may be too little, too late.

3.4.           Winter Heating Allowance and Warmer Homes Discount

• The replacement of Cold Weather Payments with Winter Heating Allowance may leave some worse off. In rural areas particularly, where a claimant may have been eligible for a £25 payment for four or more cold spells this winter, compared to the flat rate of £50.

• In addition, there was a missed opportunity, given what is known regarding disabled people’s additional energy costs, for eligibility criteria to better target disabled people for support alongside pensioners and those on low incomes.

• It is also concerning that Winter Heating Payments will not be made until February, which is too late for many making difficult choices in the preceding winter months.

3.5.           Warmer Homes Discount

• Eligibility for the Warmer Homes Discount – which has not increased with inflation for several years – has changed and no longer includes those claiming additional cost disability benefits.

16 Scope (2022) Why disabled people are at the centre of the cost-of-living crisis and Disability Rights UK (2022) One-off payment not enough to end cost of living crisis

17 House of Commons Library (Aug 2022) Energy Bills Support Scheme: Government Policy and FAQs

• This means that disabled people, including those in rural areas struggling with less efficient homes and higher costs, are missing out on a £150 payment they were previously entitled to (equivalent to the 2022 Cost of Living Payment).

• Neither the Warmer Homes Discount or Winter Heating Payments have been designed to protect disabled people, including those living in rural communities, despite their vulnerability to rising energy costs.

Conclusions

4.1.           The submission sets out how the cost of living crisis is severely impacting disabled people living in rural communities who are living at the intersection of a vulnerable identity and challenging environment.

4.2.           Disabled people’s poverty is deeply entrenched and caused by structural inequalities, social attitudes, and the failure of policy and services to meet disabled people’s needs. The current cost of living crisis comes after a decade of austerity that has eroded the safety net for disabled people, a pandemic response that did not prioritise our human rights, and an approach to economic recovery that has not valued us.

4.3.           Similarly, rural and island communities in Scotland require additional attention and investment to support their communities, including disabled residents to realise their human rights and become economically sustainable.

4.4.           We are calling for the emergency response to take a cash-first and rights-based approach which puts money in the pockets of those who are struggling and empowers disabled people and their households to make the right choices for them.

4.5.           We also emphasise the need for the involvement of disabled people with lived experience of poverty and the cost of living crisis. Governments must learn from these experiences and develop responses that will effectively alleviate the challenges we face. This may include commissioning bespoke research into the experiences of disabled people living in rural communities in Scotland to better qualify and quantify the support needed.

4.6.           Action must be taken to tackle the structural inequalities faced by disabled people in rural communities including the employment gap, educational inequalities, access to health and social care, digital exclusion and benefit uptake.

4.7.           In the immediate term, however, we recommend:

• Doubling the new Winter Heating Payments (which replace Cold Weather Payments) from £50 to £100. The majority of households receiving the payment (400,000 households) contain a disabled adult or child and as energy costs have doubled its only logical to also double the Winter Heating Payment.

• Speed up and streamline the process for receiving the Energy Bill Support Scheme Alternative Fuel payment.

• Work with and increase funding to the Fuel Bank Foundation to support off-grid customers, by, for example, making emergency funds available to people who are struggling to afford fuel or who are already in debt to fuel providers.

• Cost of living payments for disabled people should be increased to compensate for the delay in uprating of additional costs benefits.

• Consider options to fund the additional energy costs experienced by disabled people who need to use and power specialist NHS medical equipment at home in order to protect life, or indendent living equipment such as chairlifts or hoists and avoid disabled people going into hospital or residential care. These people could be easily targeted for support by the NHS and Social Care Authorities.

• Embark on systematic local investment projects to a. improve the energy

efficiency of disabled people’s rural homes and b. increase disabled people’s access to transport options in rural locations.

For more Information contact:

Maddy Kirkman

Policy and Parliamentary Officer Inclusion Scotland

0131 370 6713

maddy@inclusionscotland.org

February 2023