Cost of Living impact on communities: a blog

By Bea Jefferson, Fund Adviser in the Northeast

I work in Foundation Scotland’s Communities Team and spend most of my time supporting the distribution of place based funds in the Northeast of Scotland.

However, having a background in research (and a love of number crunching) I was recently asked to analyze survey data collected by my colleagues on the impact the cost of living crisis is having on groups that receive funding through Foundation Scotland. A summary of the findings is here.

I have to say, the task was quite an eye-opener. Reading the comments of those, many of whom are unpaid volunteers, at the sharp end of the crisis was a stark reminder of the desperation being felt by many of the most vulnerable people in our society, and the worry and anxiety being faced by community groups countrywide who are doing their very best to help.

It left me feeling worried about the coming month, for so many reasons. We are about to see a cut in government support for non-domestic energy bills, which can be the biggest cost for community facilities such as village halls, community centres and sports centres. Some of these facilities, which play a central role in communities, will not survive.

At the same time, a lot of third sector organisations will be discussing pay rises for their staff for the new financial year. Budgets won’t stretch to pay rises which reflect current inflation levels, which is a serious concern as the sector already has issues with low pay, labour shortages and problems retaining staff.

The cost increases already experienced by community organisations, and the further dramatic increases which are imminent, undermine the ability of organisations to support people in their communities who are already struggling. Demand for the services provided by community organisations helping people in poverty and experiencing crisis has rocketed, putting major strain on a financially fragile sector.

None of the above will be a surprise to anybody working in the voluntary and community sector. The big question is, what can organisations such as Foundation Scotland do to help?

My colleagues have recently written blogs on this site showing some of the practical actions we are already taking, such as supporting CABs, and measures which reduce energy bills. And I am very glad to see that there will be more action to come, such as a new Communities in Crisis fund. We are also looking at how we can address the entrenched root causes of inequality through a pilot fund. 

The scale of the multiple crises we are facing, in terms of the climate emergency and the rising cost of living – all in the aftermath of a pandemic - can feel overwhelming. However, we know that our support can make a difference, and listening to what the groups who are funded through Foundation Scotland have told us about their experiences will help us shape an effective response.

To the groups who took the time to fill out our survey, when you already have so much on your plates, we would like to say thank you. It has helped us to understand what you are facing.