The cost of living in rural Scotland: 40% more than urban UK

The cost of living in a countryside town is consistently more expensive in remote Scotland than in England, in some places by as much as 25%.

The study was commissioned by several councils, housing bodies, Scottish Enterprise and Highlands and Islands Enterprise.

Research was carried out in three remote rural areas: the Highlands, the islands and southern Scotland. The study looked at living costs in towns such as Lerwick, Wick, Campbeltown and Stornoway, as well as in small settlements.

"Typically, the minimum cost of living in remote rural Scotland ranges between 10% and 40% more than the equivalent in urban Britain. The cost of living in a rural town is consistently more expensive in remote Scotland than in England, by up to 25%," the study report said.

"These high living costs threaten the sustainability of local communities by making it harder for people from a range of backgrounds and ages to live there at an acceptable standard."

People in remote rural areas of Scotland require "significantly higher incomes to attain the same minimum living standard as those living elsewhere in the UK", adding: "This is partly due to the costs of additional travel but mainly caused by the higher cost of buying the same things as elsewhere, and the extra cost of keeping warm."

Welfare benefits "do not cover the cost of living in remote rural Scotland", the report said.

State benefits only provide up to 90% of the amount of money a pensioner needs, as little as a third of what working-age people need and only about half of what a family with children needs.

The minimum wage "only produces about two-thirds of a minimum income for a single person living in remote rural Scotland", the report said.

"For an adequate income, a single person needs to earn about 90% of the median, whereas in urban parts of the country someone on two-thirds average earnings has enough."

People living in remote areas have to pay more for many goods including food, household items, petrol and clothing. They also endure "significant additional costs" because they often have to travel further to get to work, the report said

Household energy bills in remote rural Scotland are "much more" more than elsewhere in the UK to allow people achieve the same levels of comfort.

People have lower costs in some areas, according to the report, with rent, water charges, council tax and motor insurance often cheaper but these produce "relatively minor savings in comparison with these additional costs".

The Scottish Federation of Housing Associations (SFHA) is one of the 10 organisations that commissioned the study. Policy director Maureen Watson hailed it as a "comprehensive piece of evidence about the cost of living in remote rural Scotland".

She said: "This research shows that for households to have a minimum acceptable standard of living in remote rural areas of Scotland, they typically need incomes that are 10-40% higher than elsewhere in the UK.

"Housing-related factors are part of the story. Many of the areas are not on mains gas and have more severe climate conditions than other parts of the country.

"Also, flats are in short supply, necessitating the additional costs of heating a house. A significant part of the housing available in these areas is made up of privately rented, older homes, many heated by oil. All of this brings additional household costs.

"There is an urgent need for more affordable, higher-quality housing solutions in remote rural communities.

"Improving energy efficiency in all tenures is critical but the investment required must not increase the rental costs for households who are already facing severe financial constraints.

Ms Watson added: "The SFHA views this research as vital in informing our forthcoming review of how to measure what constitutes genuinely affordable rented housing."