Newly-announced measures to help those living on the breadline in Stirling have been welcomed - but there are fears they won’t be enough to reverse the current situation for many.
The cost of living crisis has been prompted by mammoth rises in energy prices, fuel and food costs on top of existing squeezes in the rate of inflation and changes to benefit entitlements.
The situation prompted Chancellor Rishi Sunak to announce a £21 billion package of measures last week aimed at reducing the burden, including a £400 rebate on energy bills and an extra one-off payment of £650 to around eight million struggling households.
Staff at Stirling Citizens’ Advice Bureau, which help those seeking support with their bills, offered a cautious welcome to the moves.
Stirling CAB CEO Craig Anderson said: “The cost of living crisis is unprecedented in recent social and economic history.
“The rising cost of living are pushing the vast majority of Stirling residents into fuel poverty and a significant further number into extreme fuel poverty, meaning they are spending more than 20 per cent of their available income on fuel.
“With the associated cost of food and petrol increases - which is disproportionate in rural communities - it is the perfect storm.
“People are having to make difficult choices, food bank usage has increased greatly of late, as has our crisis intervention work.
“Food insecurity doesn’t happen in isolation. For many people, the overall cost of living is simply too high, and incomes are not keeping up.
“This means having to make difficult choices between – for example – topping up their pre-payment energy meter or buying that week’s shop.
“Some of the measures announced by the Chancellor will provide some respite, however in reality it won’t be enough to halt a rising tide of poverty that could sweep millions across the UK into debt and destitution.
“Put simply much more needs to be done than has been recently announced.”
Energy advice worker at Stirling CAB, Gary Egan added: “Whilst these measures are greatly appreciated there will obviously be winners and losers.
“The overwhelming majority of my clients are on some type of benefit and pay by pre-payment meter.
“The £400 paid universally in October, should be applied automatically and remotely, this is on the assumption the client has a smart meter, not all do and in all likelihood they would receive ten £40 vouchers.
“These same clients would benefit from the £650 cash payment, two instalments, one in July and the other in the autumn.
“My concern would be, from a budgeting point of view, not all the funds will hit their intended target. The majority of clients arrive at our door as they struggle with budgeting in general, a more equitable spread over a longer period of time would have been more preferable.
“The biggest winners would be pensioners in receipt of pension credit with a potential gain of up to £1500.
“The biggest losers will be working families just outwith the Universal Credit cap, with slightly larger than average bills, they will have seen their prices increase from September 2021 to October 2022 by around 172 per cent and coupled with non-energy inflation their household budgets will be severely battered.
“I believe we are going to start seeing more of the ‘working poor’ who will require our assistance in the near future.”
Meanwhile, Stirling MSP Evelyn Tweed argued that more needed to be done by the UK Government to help support people with energy prices set to rocket again in October.
Ms Tweed said: “The Tory UK Government has been woefully slow in its response to the rapidly rising costs of food and energy, so it’s a welcome relief to see the Chancellor finally provide more targeted support for households last week.
“Whilst this response is welcome in the immediate future, we know that the cost of living crisis is set to worsen in the autumn with the energy price cap anticipated to rise by a further £800 per year.
“The UK Government must plan ahead and get a handle on this in order to protect households and businesses across Stirling and the UK in the long term.”
