Report|Cost of 'living'crisis Scotland

Aka cost of LOCKDOWN. Crushing society, particularly the most vulnerable.

Introduction

This report brings together analysis from a wide range of sources to provide a summary overview of evidence on the ‘cost of living’ crisis and its impact on Scotland. It includes evidence from Scotland and the UK as well as from other European countries. Below you will discover some truly shocking facts and figures for a developed nation.

‘‘The 2021 to 2023 cost of living crisis was the most serious inflationary shock to affect Scotland since the early 1980s.’’

‘‘The Glasgow Disability Alliance stated that since 2021, the cost of living crisis has created severe impacts for the most vulnerable members of society, creating an unfolding ‘‘social catastrophe.’’

See two harrowing GDA testimonies at the Scottish COVID inquiry here and here.

‘‘The clinical risk that disabled people had that alone doesn’t explain why there were so many deaths of disabled people.’’ -Marianne Scobie

‘Protecting the vulnerable’ was the message during ‘the COVID pandemic’ but in reality they were and continue to be crushed.

Report-key points

• The ‘cost of living’ crisis has presented serious economic and social challenges for Scotland and the UK, and has had a detrimental effect on businesses, communities, households, public sector budgets and the delivery of key public services.

NB: 20,000 small business closures in Scotland the first year of lockdown see here.

• The cost of living crisis affected everyone, some households, services and

  sectors of the economy were much more exposed to rising prices. Low income

  households were, and continue to be, particularly adversely affected.

• Disabled people and single person households, households in receipt of income-related benefits, people narrowly ineligible forbenefits, and people with no recourse to public funds were particularly adversely affected.

• Polling shows that for many people (particularly low income households) it

  doesn’t feel like things are getting better.

• The longer term effects of the cost of living crisis continue to present serious

  economic and social challenges for Scotland, and the crisis may negatively affect

  people’s health, wellbeing and future resilience for years to come.

Building back better?

‘‘Annual food price inflation reached 19.2% in March 2023, the highest rate of increase in food prices since 1977.’’

• The number of Scots reporting cutting back on essentials such as food peaked at 24% in February 2023 before falling to 15% by December 2024. In December 2022, 62% of households who said that they were managing less well financially.’’

Differential effects of the cost of ‘living’ crisis on households

‘‘The latest YouGov survey for the Scottish Government from December 2024 shows how the cost of living crisis has seriously affected women’s mental and physical health.’’

• 34% of women reported that their physical health has been negatively affected (compared to 27% of men) and 48% of women reported that their mental health has been negatively affected (compared to 39% of men).

• Disabled people. The crisis has worsened poverty and financial insecurity, with disabled people unable to heat their homes, going hungry or eating a nutritionally deficient diet. The study presented multiple examples of where this had directly compromised the management of participants’ health conditions:

“I’ve to take my medication with a meal, three times a day. There has been days when I can only afford one half-decent meal. So when I’m taking my pills without a meal I feel pretty bad, my stomach isn’t right and I’m worried about the long term impacts that’s having on me”

• People with chronic health problems or disabilities are more likely to experience destitution. More than two thirds of people referred to food banks in the Trussell network, are disabled.

• Research by Trussell in 2023 found that many disabled families in Scotland are going without dental treatment (32%) and medication (8%) due to lack of income.

• There is emerging evidence that financial pressures are significantly affecting

  younger peoples health and wellbeing. The latest YouGov data from December 2024 shows that more than half (56%) of 18-34 year olds state that the cost of living

  situation has negatively impacted on their mental health.

• One in four students regularly going without food or necessities because they could not afford them.

Business impacts

• Research by Cornwall Insight in 2024 found that small businesses are on average

  paying over £5,000 extra a year on energy bills than before energy crisis in 2021. They also forecast that small industrial businesses are predicted to be paying

  £550,000 annually for electricity per year in 2026/2027. This marks a 57% increase

  compared to pre-crisis costs.

Worsening mental and physical health

• 71% agreed that the price of food limits the extent to which they can buy healthy foods.

• 39% agreed that the price of food means that they can’t buy enough food for the household and they sometimes have to skip meals.

Thoughts

A question i ask people that went along with the ‘COVID’ measures is what have we really gained as a society for all that compliance and how is this level of governance acceptable to anyone?

2025 v 2019

• Worse health outcomes

• Declining life expectancy

• Economy ruined

• NHS wrecked with record waiting lists

• Record food prices

• Record poverty and homelessness

‘‘Life expectancy is no longer rising and average living standards have fallen since 2019. Compared to before the pandemic, more people in Scotland are in relative poverty; food insecurity, homelessness and fuel poverty; and the proportion of young adults not participating in work, education or training are all higher.’’

‘‘The longer term effects of the cost of living crisis continue to present serious economic and social challenges for Scotland. The crisis has left a legacy of higher household debt, public and third sector services under significant strain, increased inequality and poorer mental and physical health.’’

‘‘Scotland’s future resilience should build on existing action to include longer term measures to reduce energy consumption, support more sustainable sources of energy and improve households’ financial ability to withstand future economic shocks.’’

-Pages 35-37

Full report here.

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