Rural Services Network study shows rural areas are being hit harder during cost-of-living crisis

The study, published by the Rural Services Network, shows that those living in the countryside are facing more hardship when it comes to paying for food, transport, council tax, housing and heating bills. 

In rural areas in terms of heating homes, the reduction in fuel bills needed to take a household out of full poverty would be £501, compared to £223 in urban areas - which is because on average, rural households tend to be less energy efficient and have a higher rate of using off the gas grid. 

Coming into force on the 1st of October, is the Government’s Energy Price Guarantee - which places a £2,500 price cap per year for the average British household for the next two years - which has been said to save the average household £1,400 this year when combined with the energy rebate. 

Dr Neil Hudson, MP for Penrith and The Border, MP for Penrith and the Border, England’s largest and most rural constituency, has called on the Government to make sure remoter rural communities don’t get left behind when rolling out support to keep people warm this winter.

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The issue revolves around rural Britain’s unique situation whereby a large portion of households and businesses use heating oil and liquified petroleum gas (LPG) to keep buildings warm who have seen huge price hikes in recent months.

The Government is offering those off grid who rely on heating oil and LPG £100, a figure Dr Hudson is urging them to increase immediately as it does not reflect the hardship faced by people having to fill tanks at hugely inflated costs and often with a minimum bulk volume level of 500 litres. 

Whilst the Cumbrian MP welcomed the energy price support on offer, he has repeatedly raised with Ministers about providing bespoke support for the UK’s rural communities, such as those in Cumbria. 

"I thank the Prime Minister for starting to address the issue of heating oil in rural communities like her own, as well as the sweeping support with energy bills for businesses and households alike. Clearly it is something the Government is aware of, but we simply need to do more considering just how volatile the market is right now. We are moving in the right direction but we need to go further and faster to make sure people are getting the support they need.

"Speaking frankly, I use heating oil at home in Brampton, so I’m very aware of the anxieties people are facing when they have to spend many hundreds of pounds to refill their tanks. The £100 support figure simply is not enough and I am urging the Government to address this as a priority for our rural communities. Let me assure my rural constituents who are not on the gas grid that they are being listened to and that I will continue to bang the drum for them at the highest level of Government.”  

On another disparity gap for rural living however, research indicated that rural residents working in rural areas earn much less than their city living counterparts.

A significantly higher proportion of employees earn below the Real Living Wage (£9.90 per hour outside London, 2021-22) in predominantly rural areas compared to predominantly urban areas.

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In terms of transport, those living in rural areas feel the brunt of rising costs as on average, they spend £113.90 per week on transport compared to £76.20 for urban households. 

In 2022/23, rural residents will also pay, on average, £104 more per head in Council Tax than their urban counterparts. 

Rural populations are also facing a housing crisis, the report showed. 

Soaring housing and rental costs, combined with a 224 per cent increase in demand for each available property since pre-pandemic levels, has sparked a 115 percent increase in rural homelessness between 2017-2020, almost double the national increase.

Graham Biggs, chief executive of the Rural Services Network, said:"The cost of living is a significant issue for all people and businesses across England, but rural areas have systematically faced higher costs and disadvantages compared to urban counterparts, which is leaving communities more vulnerable.

"While the recent government energy support package is welcome, rural areas are facing a triple  burden of higher heating and transport costs, while also earning a lower income. As the report shows, other costs of living are also higher for rural people than their urban counterparts. The government must overcome policy silos and develop an integrated approach that recognises the multiple forms of disadvantage rural areas face. This should include levelling up the rural economy to ensure that low wage levels can be improved, as well as supporting rural houses to become more energy efficient to help get families out of fuel poverty. Many rural homes which are off the gas network are more difficult and costly to heat and insulate. 

"Out-dated infrastructure and a legacy of other factors, such as poor transport and broadband connectivity, employment opportunities and housing demand, means that many rural areas are more isolated than maps suggest and are all contributing to a higher overall cost of living. Without taking these measures into account, rural areas are at greater risk of being left yet further behind in the cost-of-living crisis," he said. 

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