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Select committee: Scottish Affairs Committee

Cost of living: impact on rural communities in Scotland

Closed Opened 16 Dec 2022 Closed 25 Apr 2024 4 recommendations 8 conclusions

Scottish Affairs Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
The Committee has launched an inquiry to explore the impact of rising costs of living on rural populations across Scotland. We'll also be looking at to what extent support packages provided by the UK Government meet the needs of Scotland’s rural communities in relation to the cost of living, and whether this could be better tailored. The Committee is welcoming any written responses to the inquiry, especially from those living in rural areas in Scotland. Read the call for evidence for more information about the inquiry and how to submit your views.

Where it stands

The inquiry is closed, opened 16 December 2022.

The committee has published 1 report, most recently First Report - Cost of living: impact on rural communities in Scotland on 24 January 2024.

The government's response

Published 18 April 2024.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government notes the Committee's recommendations on defining rural Scotland and on transport, states that it "does not agree" with the call for a new review of cost of living support, and describes housing and transport policy as devolved matters for the Scottish Government.

  • On the proposed review of winter 2022/23 support, the government says reviews by individual departments are already under way and "will address much of this recommendation", and it "does not agree" with conducting a new one.
  • It says a further UK final impact and value-for-money evaluation of the energy support schemes is being commissioned to run until summer 2025, with findings to be shared with the Committee and published.
  • On tailoring support to rural areas, the government says it "understands" the Committee's view that support could have been more tailored, but states that this "would have required these novel schemes to be adapted and further complicated" and delayed payments.
  • On transport, the government "notes" the recommendations, says ferry, bus and active travel services are devolved, and says it will "where possible and appropriate" support the Scottish Government, including through the Islands Connectivity Task & Finish Group.

Read the government's response ↗ Report an error

Recommendations and conclusions

All 12 recommendations and conclusions

Reports

All reports

Evidence

  • 4 oral evidence sessionsLatest 11 September 2023
  • 18 witnesses
All evidence

Recent activity

Meetings and visits

Recommendations and conclusions 12 shown

1: Scotland's diverse rural communities require tailored cost-of-living interventions reflecting varied local experiences.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
The term “rural communities” encompasses a broad gradation of populations across Scotland and this results in a varied experience for people living in rural areas. Successful cost of living interventions need to account for and be tailored towards that variable experience.

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2: Carry out review of winter 2022/23 cost-of-living support effectiveness for Scottish rural households.

Recommendation · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Recommended (the committee's words)
Whilst accepting the UK Government were keen to get support out to assist people as quickly as possible, the UK Government should carry out a review to assess the effectiveness and value for money of cost-of-living support provided by the UK Government during winter 2022/23. This review should evaluate: a) How effectively this support met the needs of Scottish rural households; b) How the UK Government could have better targeted the support; and c) Whether all levels of Government have sufficient data and administrative systems to deliver more effective, targeted cost of living support in the future, if required The UK Government should write to us with the findings of this review once completed.

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3: Blanket energy support failed to 'rural-proof' for Scottish households, disadvantaging off-grid users.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
The unprecedented package of financial support delivered to households across Great Britain by the UK Government last winter was welcome and helped to mitigate the full impact of the dramatic energy price increases experienced during the period. However, the Committee heard that the blanket level of energy support provided was not sufficiently “rural-proofed”–it did not account for additional costs required for many households in rural Scotland. Energy schemes prioritised administrative ease to accelerate funds getting to people over specific targeting. Whilst understandable in the context of the immediate crisis, a system of support more tailored towards the acute pressures faced by rural communities would have been more effective. In addition, many off-grid users reported unacceptably long waits to receive payments. Support measures need to ensure parity between households connected to the grid and those reliant on alternative fuels.

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4: Rural Scottish households face significant barriers accessing home energy efficiency schemes despite high need.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
One way to help reduce energy costs in the long-term is to improve the energy efficiency of homes. The challenge of retrofitting and insulating homes, in terms of cost, time and practicality, are particularly acute for rural areas. Rural Scottish households are therefore facing more barriers to accessing home energy efficiency schemes, despite being most in-need of them. Addressing this challenge will be key to reducing the rural premium for these Scottish consumers.

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5: Scottish Government's Energy Efficiency Scheme has underspent ring-fenced funds without clear justification.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
The Scottish Government’s Energy Efficiency (Area-Based) Scheme uses ring-fenced funds which require approval, but which we heard was causing concern. Witnesses were unable to provide reasons for the Scottish Government’s underspend of this scheme.

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7: Severe hardship and increased food bank reliance evident in remote rural Scottish communities.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
We are deeply concerned by the real hardship being experienced across many rural communities in Scotland, such as parents having to skip meals in order feed their children. Food banks provide a vital service in remote rural Scotland. There has been a significant increase in demand for their services with a record number of food parcels delivered over the past year.

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8: Food insecurity driven by insufficient income, exacerbated by global events and no agreed definition.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
Although there is no agreed definition of food insecurity, it is clear that the difficulties people experience in providing sufficient food for their families are the result of a range of issues affecting household budgets—there is no lack of available food, but there is often insufficient income to pay for it. This hardship has been exacerbated by covid-19 and other global events such as the war in Ukraine.

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9: Agree consistent definition and measurement of food insecurity, addressing high prices in rural Scotland.

Recommendation · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Recommended (the committee's words)
By Spring 2024, the UK and Scottish Governments should agree a consistent means of defining food insecurity and food poverty and show how it plans to measure this in the context of remote rural communities in Scotland. In its response to this report, both Governments should also set out what it is doing to address high food prices affecting remote rural communities in Scotland specifically.

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10: Collaborate to investigate impact of high food prices and food insecurity in remote rural Scotland.

Recommendation · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Recommended (the committee's words)
The UK Government should work with the Scottish Government and local authorities jointly to investigate further the impact of high food prices as well as the scale and nature of food insecurity and food poverty on communities in remote rural Scotland. They should collate this data to identify parts of society worst affected and what must be done to ensure nobody goes without essential food .

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11: Lack of reliable, affordable transport hinders remote rural communities mitigating cost of living crisis.

Conclusion · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Concluded (the committee's words)
Ferries are existentially important to island communities, but also create knock-on costs for goods and services. The lack of regular, reliable, affordable and integrated transport provision–including adequate and reliable bus services - is one of the main barriers to remote rural communities mitigating the impact of the current cost of living crisis. Service disruption further hinders connectivity, preventing the movement of people and goods, therefore affecting communities’ cost of living in multiple ways. Active travel options provide limited opportunities to ease transport challenges in remote rural locations.

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12: Improve rural Scotland transport provision, integrate services, and ensure timely, cost-effective vessel delivery.

Recommendation · First Report - Cost of living: impact on rural communities in Scotland · Addressed to Scotland Office

Recommended (the committee's words)
Given the continued problems the Scottish Government have faced progressing improvements to vital roads and ferry infrastructure, the Scottish Government should work together with the UK Government and local authorities to improve the provision of transport across rural Scotland. The Scottish Government should look to coordinate the operators of these services more rigorously to ensure that timetables Cost of living: impact on rural communities in Scotland 29 are more integrated and meet the needs of people in these communities. Transport investment turbocharges the UK’s net zero ambitions and economic growth, and we welcome the action taken by both Governments to tackle this. The Committee shares the anger and frustration of affected communities by the ongoing failure of the Scottish Government to deliver two lifeline ferries which are so far six years late and £250 million over budget. Both Governments should work together to ensure mistakes are not repeated and that timely and cost-effective delivery of vessels happens in the future.

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Reports

1 report

Oral evidence sessions

4 sessions

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Date Session and witnesses Source
11 Sep 2023
Oral evidence session
Amanda Solloway · Department for Energy Security and Net Zero, Ben Pledger · Department for Energy Security and Net Zero, Gavin James · Department for Transport, John Lamont MP · Office of the Secretary of State for Scotland, Kris Krasnowski · Office of the Secretary of State for Scotland, Mr Richard Holden · Department for Transport 		View ↗
3 Jul 2023
Oral evidence session
Dr Andy Cope · Sustrans Scotland, Ranald Robertson · HITRANS (Highlands and Islands Transport Partnership), Uisdean Robertson · Comhairle nan Eilean Siar (Western Isles Council) 		View ↗
19 Jun 2023
Oral evidence session
Cara Hilton · The Trussell Trust, John Dickie · Child Poverty Action Group in Scotland, Professor Mary Brennan · University of Edinburgh Business School 		View ↗
27 Feb 2023
Oral evidence session
Chris Birt · Joseph Rowntree Foundation, Frazer Scott · Energy Action Scotland, Heather Williams · Scottish Women's Budget Group, Professor David Bell CBE · Royal Society of Edinburgh, Professor Hugo van Woerden · University of the Highlands and Islands, Ruth Boyle · Poverty Alliance 		View ↗

Who gave evidence

18 witnesses

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WitnessOrganisationSessions
Amanda Solloway · Parliamentary Under-Secretary of State (Minister for Energy Consumers and Affordability) Department for Energy Security and Net Zero 1
Ben Pledger · Deputy Director, Energy Affordability, Strategy, Devolution & Legislation Department for Energy Security and Net Zero 1
Cara Hilton · Senior Policy & Public Affairs Manager (Scotland) The Trussell Trust 1
Chris Birt · Associate Director Scotland Joseph Rowntree Foundation 1
Dr Andy Cope · Director of Evidence and Insight Sustrans Scotland 1
Frazer Scott · Chief Executive Officer Energy Action Scotland 1
Gavin James · Deputy Director – Scotland, Wales and Northern Ireland Department for Transport 1
Heather Williams · Training Lead Scottish Women's Budget Group 1
John Dickie · Director Child Poverty Action Group in Scotland 1
John Lamont MP · Parliamentary Under-Secretary of State Office of the Secretary of State for Scotland 1
Kris Krasnowski · Deputy Director, Policy Delivery and Relationship Management Office of the Secretary of State for Scotland 1
Mr Richard Holden · Parliamentary Under-Secretary of State (Roads and Local Transport) Department for Transport 1
Professor David Bell CBE · Emeritus Professor of Economics Royal Society of Edinburgh 1
Professor Hugo van Woerden · Visiting Professor University of the Highlands and Islands 1
Professor Mary Brennan · Chair of Food Marketing and Society University of Edinburgh Business School 1
Ranald Robertson · Partnership Director HITRANS (Highlands and Islands Transport Partnership) 1
Ruth Boyle · Policy and Campaigns Manager Poverty Alliance 1
Uisdean Robertson · Chair of the Transportation and Infrastructure Committee Comhairle nan Eilean Siar (Western Isles Council) 1

Correspondence

5 letters

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PublishedDirectionLetter
21 Nov 2023 To committee Letter from Mairi Gougeon MSP, Cabinet Secretary for Rural Affairs, Land Reform and Islands at Scottish Government on her reasons for declining to give evidence to the Cost of living: impact on rural communities in Scotland inquiry, dated 25 October 2023
14 Nov 2023 Not recorded Correspondence with Mairi Gougeon MSP, Cabinet Secretary for Rural Affairs, Land Reform and Islands at Scottish Government on declining an invitation to appear before the Committee in Edinburgh on 4 December, dated 1 and 9 November 2023
24 Oct 2023 To committee Letter from Mairi Gougeon MSP, Cabinet Secretary for Rural Affairs, Land Reform and Islands at the Scottish Government on her non-attendance at the Committee’s session on the Cost of living: impact on rural communities in Scotland on 11 Sept, dated 13 September 2023.
17 Oct 2023 To committee Letter from Amanda Solloway MP, Minister for Energy Consumers & Affordability at Department for Energy Security & Net Zero on follow-up from evidence session on Cost of living: impact on rural communities in Scotland on 11 September, dated 20 September 2023
11 Sep 2023 Not recorded Correspondence with Mairi Gougeon MSP, Cabinet Secretary for Rural Affairs, Land Reform and Islands at Scottish Government on reason for her not being able to appear before the Committee on 11 September, dated 6 September 2023.

Meetings & visits

1 item

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DateTypeDetailSource
16 Jan 2024 Formal meeting (private meeting) Not recorded · Room 8, Palace of Westminster