Cost-of-living support for Scots in remote communities must be tailored to account for ‘rural premium’ on bills

Government support packages aimed at helping struggling householders through the cost-of-living crisis are failing Scots living in the most remote parts of the country, MPs have found.

Members of the Westminster-based Scottish Affairs Committee are warning that blanket UK-wide schemes intended to help people afford rising bills are not sufficiently “rural-proofed” and do not meet the needs of remote communities in Scotland who face a “rural premium” for goods and services.

As a result of factors such as an increased exposure to fuel price inflation, Scots living in places such as Orkney and Shetland, the Highlands and Islands and Argyll pay some of the highest costs in the UK – due to a greater reliance on transport, necessity to use expensive alternative fuels for off-grid households and extra charges for food deliveries to outlying locations.

Evidence submitted to the committee as part of the inquiry showed the highest rates of fuel poverty in Scotland were found in the most rural regions – and this was prior to the recent sharp rise in prices.

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The data showed between 30 per cent and 40 per cent of homes in Na h-Eileanan Siar, Highland, Argyll and Bute, Moray, Shetland Islands and Orkney Islands were faced with fuel bills of more than a tenth of their income after housing costs.

Scottish Government figures show 34 per cent of households in Scotland are living in fuel poverty, with 23 per cent suffering extreme fuel poverty.

The committee also heard that food insecurity had led to a “cost-of-surviving crisis” for some in particularly remote areas, while delays to improvements of ferry and road infrastructure has further exacerbated difficulties for rural communities.

Cost-of-living support for Scots in remote communities must be tailored to account for ‘rural premium’ on bills, according to new report from Westminster's Scottish Affairs Committee

MPs are calling for the Scottish and UK governments to work together in order to better understand the scale and complexities of the challenges facing rural Scots.

They are recommending financial support packages tailored for rural people’s needs to more effectively tackle the acute and unique pressures those households face.

Agreeing consistent definitions of food poverty and more effective collaboration to overcome transport infrastructure challenges would be welcome steps forward, they say.

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“During the cost-of-living crisis, people living in remote parts of Scotland have found themselves in a perfect storm of poorly insulated, high-energy-usage homes, with an extended journey to local amenities and food shopping bills off the charts,” said Scottish Affairs Committee chair Pete Wishart, SNP MP for Perth and North Perthshire.

“Schemes implemented by both the UK and Scottish governments have been welcome in large parts of Scotland, but the reality is these households have been lumbered with a ‘rural premium’ that hasn’t been adequately addressed by state support.

“We must learn the lessons from the economic challenges households have faced over the last few years.”

The committee’s report acknowledges the unprecedented levels of support provided by the UK government, which has helped mitigate the impact of price spikes.

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But it concludes that some schemes had prioritised administrative ease to accelerate funds getting to people rather than specifically targeting financial help for those who need it most.

Mr Wishart added: “I hope both the UK and Scottish governments will use this time to properly understand the support these communities will need to prevent them falling further into poverty should we face similar problems in the future.”