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Argyll and Bute Council · 29 September 2022
Back to Argyll and Bute Council — 29 September 2022 and its agenda

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Page 1

OUR SITUATION IN BRIEF
This is a great part of the world to live, key to the economic success of Scotland and the UK more
widely. However average income is lower, costs are higher – nearly 70% of households are at risk 
of fuel poverty or extreme fuel poverty.
Argyll and Bute 
– cost of living crisis case for support
Actions
We call on the Government to:
Urgently provide information on funding for people who do not get their energy through typical
means: 50% of our households are non-gas compared to 14% of all Scottish properties.
Apply price caps to oil, LPG and solid fuel to ensure all households are given the support they
need to heat their homes.
Remove the variable standing charge rate that compounds the already higher costs for
households in remote and rural areas. This must be changed to a uniform charge.
Deliver equity in all support for the cost of living and fuel cost crisis by making sure that support
measures are pivoted to take account of the additional costs of remote, rural and island living.
Nearly 70% 
of households
in Argyll and Bute are
at risk of fuel poverty.
The price cap announcement
does not help Argyll and Bute 
– the cost of heating homes 
here is estimated to be more
than double the price cap 
figure for an average household.
To avoid fuel poverty an average all-electric
household would need an income of at least
£72,200 per annum, or to avoid extreme fuel
poverty £39,600; this compares to a median
household income of just under £33,000 
(and excludes impact of increased costs 
elsewhere such as food).
Food, clothing, travel – these cost between
13% and 185% + more
than in urban UK
however disposable income in Argyll and
Bute is 10% less than the UK average.
Supporting Argyll and Bute is supporting Scotland and the wider UK economy – we are a key location
for industries vital to the immediate and longer term economic success of the country (eg tourism, food
and drink, renewable energy)
Scotland and the UK need people to live and work here – people need support, equitable with the rest 
of the country, to live and work here.
EquityEquality VS
Food, clothing,
travel – these cost
between 13% and
185% + more than 
in urban UK
UK /
SCOTLAND ARGYLL & BUTE
FOOD
HOUSEHOLD
GOODS
CLOTHING
FUEL
TRAVEL 185%
70%
34%
22%
13%
Key points

Page 2

BACKGROUND INFORMATION
Economy
The economic impact of rurality on spending power is recognised as considerable. A recent Scottish
Government Report: ‘The impact of Rurality and Remoteness on the cost of living’ highlights the additional
costs incurred by rural households in comparison to urban UK.
Argyll and Bute Council serves the second highest mainland area of Scotland’s councils, and the highest
number of inhabited islands – and we have the highest percentage of population living in Remote Rural Areas
of all mainland Local Authority Areas, at 43% (Scottish Government Urban Rural Classification).
In addition, Argyll and Bute has the third lowest median weekly pay rate (gross) of all Scottish Local Authority
Areas  (Source: Nomis, covering the period Jan-Dec 2021).
Argyll and Bute was ranked most vulnerable in the Vulnerability Index 2020 in terms of economic shock from
the covid pandemic.
The price cap / fuel poverty
The £2,500 figure is based on a ‘typical’ household on a dual-fuel (80% gas/20% electricity) deal with
‘median consumption’; it does not address costs of households using higher levels of energy and/or
households that are all-electric or dependent on other sources.
Non-gas households have been struggling with fuel poverty long term: in 2017, before COVID and cost
of living crisis, Citizens Advice said:
Households in rural areas are particularly likely to
use unmetered fuels for heating. Households without
mains gas are more likely to be in fuel poverty; 
in Scotland, 56% of off-gas households are in fuel
poverty, compared with 29% that use mains gas.”
Sources
Findings in this report come from a variety of sources with some correlated with estimations calculated by
council services.
Increased costs of food, clothing and travel in rural areas – ‘The Impact of Rurality and Remoteness 
on the cost of living’
Lower disposable income in Argyll and Bute: Office for National Statistics
Percentage of non-gas households: various sources indicate around 50% and above (Scottish House
Condition Survey /2011Census/ Department of Business, Energy and Industrial Strategy/Citizens Advice
Nearly 70% of households at risk of fuel poverty and incomes required to avoid fuel poverty:
We took figures from the most recent Scottish House Condition Survey (2019) showing Argyll and Bute
Council is in the top 3 local authority areas in Scotland with the highest percentage of fuel poverty 32% ,
looked at how prices have increased since then, and considered relevant information from a range of 
other sources – CACI Paycheck data/Ofgem price cap figures (2019 to October 2022)/Scottish House
Condition Survey analysis conducted by Energy Action Trust/Home Analytics. The figure we reached 
is in line with estimates from another source – the Energy Saving Trust which calculated their figures using
information in home energy certificates.