A Report into the Impact of the Cost-of-Living Crisis: Executive Summary
In this report, we hear from 83 children, young people and families includem support as they face the cost-of-living crisis and forecasted recession as we move into winter. This follows our two previous reports into the experience of poverty and destitution during the covid-19 pandemic by the families we support - Poverty and the Impact of Coronavirus on Young People and Families in Scotland and Voices: Families experience of poverty and services. To our collective shame, the findings highlight that things have become significantly worse for families, meaning that for them this is not a crisis – it is a calamity.
The findings provide a stark view of what the children, young people and families includem supports experience. This is not just about the rising cost of living or the continued impact of covid-19. It is about families struggling to survive after more than a decade of austerity resulting in cuts to vital services. It shows us a lack of access to basic human rights due to inadequate incomes, underfunded social security and weak wellbeing infrastructure that lock families into poverty and increases their likelihood of significant intervention by statutory services.
As a children’s right defender, includem, along with the families we support, raises the alarm of a wellbeing crisis that could have a scarring effect on children’s lives, and Scotland, for decades to come. We call for a radically different approach by decision makers that delivers for the wellbeing of all people in Scotland.
The harsh reality of being unable to meet costs
We asked families how regularly they were struggling with costs for essentials necessary for survival, the basics for quality of life or having enough for a safety net.
“worrying
It is not a choice!
about having enough money to survive.”
71% of the families who responded said they were struggling to meet the costs of two or more essentials ‘half the time’, ‘usually’ or ‘always. For 60% it was three or all four essentials. Across every category this is worse for those families reliant on social security as their primary source of income. Results suggest most respondents are prioritising housing costs above other essentials, while all those struggling with their rent or mortgage payments are struggling across all essential costs.
73% of the families who responded to our survey said they were struggling to meet the costs of two or more basics ‘half the time’, ‘usually’ or ‘always’. For 51%, it was four or all basics. A concerning trend is emerging on costs that can be directly linked to childhood – with 66% of families reported struggling with child costs and/or school costs. For those whose main source of income is social security, this rose to a shocking 88%.
“I’m tired of struggling and worrying about heating and having enough food. I am sad that I can’t give my child some of the things she asks for.”
Over three quarters of the families includem supports are left with nothing to meet the costs of emergencies, repairs, a rainy-day or holidays. There simply is no safety net to fall back on.
“The government should understand that a lot of people don’t have rainy-day savings in their bank to get them through crises like this.”
The impact on families
The impact on families of the crisis over the last six months is striking, resulting in worsening circumstances for the majority of respondents across all impact indicators – including finances, debt and mental and physical health.
Respondents whose circumstances got worse over the last six months
* Debt impact has been calculated from the 64 respondents that identified it as applicable.
94% of respondents have experienced worsening finances, with many having to take on new or further debt to keep their head above water. Three out of four families reported worsening mental health – rising to 88% for families who main source of income is social security.
The proportion of families with worse finances, debt and mental and physical health in the last six months has increased since this survey was last conducted in 2020 – when families were facing the height of Covid-19. Single parents are acutely impacted.
“Gone from stressed to anxiety... This has had a big impact on my mental health. I’m a sole provider so this increases anxiety because it is on my head...”
This has impacted family relationships – as restricting children to bare essentials has left parents feeling like a failure through no fault of their own. A majority of respondents reported feeling judged because of their financial situation, and many felt that prevalent stereotypes and assumptions has led decision makers to ignore or simply not understand their lived reality. As a result, public health and wellbeing interventions do not effectively respond to poverty-related root causes.
“I am now on anti-depressants and sleeping tablets due to my worries for caring for my kids. I have lost a lot of weight as I chose to feed my kids over myself all too often.”
Hopes and Aspirations
At includem we are committed to working with children, young people and families to create solutions and improve services. In the survey we asked families what they needed to make life better for them and others. They told us that to have any hope of a better life families need:
They need to see an increase in living wages and better jobs. They need better support and an easier system to navigate. They need housing that allows families to build a home.
They need a social security system that promotes stability rather than greater adversity. They need emergency funds they can rely on.
They need cost of living to come down. They need their children to have opportunities to achieve a better life. They need better support for mental health and wellbeing. They need decision makers who understand the pressure of living on low incomes. They need to be heard.
“... I just want the best for my family.”
