District Matters

Rising Cost of Living

August 2023

Rising energy and other everyday costs of living have affected most residents in our District over the past two years. As Councillors we see regularly that some of our residents have been impacted much more than others and that paying energy bills is a problem that, unfortunately, is not about to go away soon.

A recent report from the Office of Budget Responsibility ₍₁₎ has confirmed just how financial and other Government decisions made in the 2020's have been so dangerous to public and private finances and the challenges ahead. The report makes grim reading.

On energy, we now have some of the highest energy prices in Europe and remain one of the most gas dependent economies. Grant schemes for insulation and energy efficiency measures have had a rocky history in the past decade. Despite Government interventions, average energy and gas payments almost doubled between 2020 and 2023. Some households faced with this rise in costs chose to reduce their consumption, others had no choice but to pay, even when it meant going without other necessities.

In this District, we saw an increase in the number of families, mainly in the private and social rented sector, reporting damp and mould in their homes last winter and increased numbers suffering from fuel poverty. We cannot allow a repeat of these case numbers this coming winter. It is crucial that property owners, whether private or social, deliver an effective response to complaints of damp and mould and the wider issues of poor conditions in tenants' homes.

The cost-of-living crisis is not just about energy. Although food is a smaller part of household budgets than energy, it is an item needed and paid for every day. Overall food prices have risen steadily over the past year and were 17.3% higher in June 2023 than a year previously. Even basic items such as carrots have seen a rise of 34% over the past year.

I am fortunate to live in a fantastically supportive community. Here in the town of Alcester, the work done by the Town Council and by voluntary groups who run the community fridge, a food bank, warm hubs, a dementia cafe and a holiday lunch club for children has been truly inspiring. Across the District, many other volunteer groups and parish councils are working equally as hard for their communities.

Such initiatives rely on the generosity of local communities who do fantastic work, but the rise of such need is a sad reflection on our times. Charities such as the Trussell Trust are reporting a continuing increase in demand for food bank assistance. Other charities are raising awareness of continuing financial instability in household budgets as rents and mortgage costs increase.

Looking ahead, bills are likely to remain high this coming winter. We must continue to give support to make sure that people can meet their energy costs, be helped with energy efficiency advice and have financial advice to address debt over the next winter. We will need to continue our support for the work of the voluntary sector and community groups and work ever more closely with the health sector.

A range of useful guidance on how to access help and advice is available on the District Council website via the Cost-of-Living Support tab.

(1) Fiscal Risks and Sustainability - Office of Budget Responsibility Report July 2023