More than 90,000 additional Scottish households are set to fall below subsistence level in the coming months as winter weather drives up home heating costs, according to a new analysis.
Figures from management consultancy Baringa also show that patterns of financial vulnerability across the UK no longer conform to traditional stereotypes, with middle-aged people more likely to be at risk than pensioners. Currently 30% of people aged between 34 and 55 lack the income to cover reasonable day-to-day expenditures, compared to just 13% of people aged 65 or older.
The supposed "north/south divide" is also blurring, with the current hardest-hit regions being London (15% of households), the West Midlands (9%), Northern Ireland (8%) and north-west England (8%). Over this winter, however, the regions due to see the biggest increase in below-subsistence households will be the east (an additional 14.6% of households) and Scotland (an additional 5.8%).
James Cooper, partner at Baringa, said the demographics have changed markedly in recent years as pensioner income has been inflation-protected and older households have benefited from rising property prices. Financial vulnerability is now "far more concentrated" in the working-age population, in particular for those with children and single-earner families.
“With the energy crisis receding, and with inflation lowering, for many it’s tempting to assume the financial pain is over," Mr Cooper said. "But for millions across the country, that pain never went away, and is about to worsen.
“This is a problem for all society. The government must urgently consider forms of targeted support – with the recent elections, the new government has a unique opportunity to take decisive action on this front."
According to Baringa's analysis, there were 115,084 households in Scotland operating below subsistence level this summer, and 465,222 classed as "vulnerable". However, those numbers are expected to shift to 205,199 and 409,007 respectively as the finances of those deemed "at risk" or "vulnerable" deteriorate with rising utility costs.
Over the coming winter months it is estimated that 2.5 million UK households will not take in enough money to pay for their essential outgoings, representing an increase of more than 400,000 households whose finances were below subsistence level during the summer.
Scotch whisky chief: Starmer set for 'first big test'
The chief executive of the Scotch Whisky Association has declared the forthcoming Budget will be the “first big test” of the UK Governments’ commitment to the industry, as he underlined the “transformational” potential of the Indian market for distillers.
Mark Kent was speaking as new figures from the organisation revealed a sharp fall in Scotch whisky exports in the first half of the year, amid challenging global economic conditions. The value of exports tumbled by 18% or £463.2 million to £2.1 billion compared with the six months of last year, with only India recording a rise among the top five markets.
Read the full story here.
Family firm wins major supermarket deal for secret chilli sauce recipe
A Scottish family firm has won a major supermarket deal for its secret chilli sauce recipe.
Dundee-based Baba’s Sauce has announced it will supply its Sweet and Spicy Chilli Sauce to all 61 Asda Scotland stores.
Baba’s Sauce was founded in 2009 by Sunny Mollah, after his father Nurul sadly passed away the previous year. Sunny’s father owned several beloved takeaway businesses in Dundee where Sunny worked alongside him.
Read the full story here.
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