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With soaring bills and real wages have fallen by £1,447.75 in Stratford-on-Avon over the last year, the Herald takes a close look at the rocky path ahead




THE announcement of the new energy price cap tomorrow, Friday, will pile more agony on people struggling with the cost-of-living crisis - but the message is to seek help as soon as possible.

There are a number of predictions around of what the figure will be but they all agree on one thing - the only way is up. And up, sharply.

The new figure will come into effect from 1st October - with another change due on 1st January and then again on 1st April, meaning soaring prices and a bleak midwinter.

Stratford cost of living (58839579)
Stratford cost of living (58839579)

The cap was introduced to limit the impact of such rises and is currently £1,971. Energy consultancy Auxilione has predicted it could go up tomorrow to £3,576 per year for the average household and could reach £4,704 from 1st January and £5,856 from 1st April.

Such hikes are a big part of the other rapidly rising figure we are hearing a great deal about - that for inflation, which measures the rise in prices and has gone way beyond the target set for the Bank of England that is should be kept to 2 per cent. It reached 10.1 per cent last month and new predictions published this week say it could go to 18.6 per cent by January, the worst among other leading Western economies.

Brexit, covid, war - the experts will argue forever about why this perfect storm has arisen but the immediate issue is the nature of the response to it.

Many people will look to the district council or county council for help and the message from both is similar - seek help as soon as you know you are not coping.

Cllr Tony Jefferson, leader of Stratford District Council said: "We want people to ask for help as soon as possible and don't keep putting it off which will make things worse. This is absolutely critical. Many people wait until it's got really bad.

"The earlier we hear about it, the sooner we can signpost people to help.

"Everyone thinks this is a short-term but it's not going to be. This is going to last for two or three years."

The only scheme the council is administering is the existing £150 Energy Rebate Scheme, through council tax - to date it has paid 33,600 households across the district and it still has around 2,300 households to pay. Nobody needs to apply and the council has until 30th September to make the final payments.

Beyond that it has its customer referral form, providing a way to access free help and support with money or housing issued, training, finding a job and general wellbeing. The front page of its website also offers a direct link to a section on financial and wellbeing support.

Cllr Jefferson also highlighted that while there has been a focus on households, there has been little attention on businesses.

He told the Herald: "There appears to be no schemes to help businesses. Their bills could go up three of four-fold and it could well push a lot of business to the wall. We were the avenue through which money was distributed to businesses during Covid but we have heard nothing about any schemes."

And he said this was what the government, with a new leader in place, would have to address: "My message is I think there has got to be a long-term strategy that's affordable that covers households and businesses."

In terms of council services he believes the council will be able to get through to the next budget round but they are seeing early signs of people struggling: "People are starting to cancel their council tax direct debits as a sign they are living more hand to mouth and maybe paying one bill one month and another the next month."

That's why he stressed the need for people to get help as soon as possible in what for many is an unfamiliar situation: "An awful lot of people have had a period where there has been extremely low inflation and extremely low interest rates and most people udner 40 have no experience of anything else."

His views were echoed by Cllr Heather Timms, the county council's protfolio holder for environment, culture and climate.

The county has set up a cost-of-living area on its website to highlight ways in which people can find help on housing, money, benefits and more.

She also highlighted the work of Act on Energy which works to help people reduce energy consumption and keep costs down at home. You can call 0800 988 2881 or visit www.actonenergy.org.uk for free advice and information on issues such as grants, billing issues and managing debt.

Warwickshire’s Local Welfare Scheme can also helps people who have reached crisis point. If eligibility criteria are met the scheme can provide one-off short-term support towards household costs. More details are available at: www.warwickshire.gov.uk/localwelfarescheme.

Cllr Timms added: "The main message is please do ask for help. We want people to seek help and not sit there worrying about it.

"If people know of people who are struggling, get in touch on their behalf and relay the information back to them.

"I think we all meed to help each other at this time. If you are not at that point of struggling you can help others."

While county council services continue to operate as normal, she said they were looking at how to reduce energy consumption and what happened in future: "We are going to have to look very, very closely when it comes to next year's budget."

As the countdown continues to the new Prime Minister taking office and shaping a policy on the mounting crisis, opposition parties have had a say on the situation.

Last week Labour leader Sir Keir Starmer’s proposed a freeze on the energy price cap at its current level of £1,971 for six months from October, with a potential saving of £1,000 for each household.

New analysis from Stratford Labour, based on the latest Labour Market Statistics, shows that real wages have fallen by £1,447.75 in Stratford-on-Avon over the last 12 months.

For context, Across the country, the real value of wages has fallen by 4.1 per cent - the steepest fall since records began over 20 years ago.

Labour’s Lee Rhodes said: “Residents across Stratford-on-Avon are taking an absolute hammering from the cost-of-living crisis, yet the Conservative Government seem to have taken the summer off. Real wages in Stratford have fallen by a staggering £1,447.75. Residents’ hard-earned money is being swept away by the steepest fall since records began, and the worst is yet to come. Energy bills are going up, prices in the shops are soaring, and mortgages are heading in the wrong direction too.

“While the Conservatives continue to fight amongst themselves, Labour has a plan to tackle the cost-of-living crisis. Keir Starmer would freeze the energy price cap, cut VAT on energy and insulate homes to bring down household bills, support small businesses with a cut to business rates, and ensure that we buy, make and sell more in Britain.

“Families across Stratford on Avon need real help now. Labour has put forward a serious plan that would make a real difference – the Conservatives need to stop obsessing about themselves and start acting for the rest of us.”

And the Lib Dems say the government should cancel the October rise, which they claim would save a typical household in the Stratford district an extra £2,209.84 a year.

They say the estimated £36 billion cost should be met by expanding the windfall tax on oil and gas company profits, and using the Government’s higher-than-expected VAT revenues as a result of the soaring inflation.

The party's Stratford spokesperson Manuela Perteghella said: “Hard-working families in Stratford district are already struggling to make ends meet and are deeply concerned about how they will cope with the predicted rise in energy bills.

"This Conservative government is stalling in the face of a national emergency and, yet again, is simply not doing enough to put money back in the pockets of hard-working people.

"Countless families and pensioners across our area are already struggling, and they cannot wait for a new Conservative leader to act.

"This is an emergency, and the government must step in now to help families and pensioners in Stratford-on-Avon by cancelling the planned rise in energy bills this October.”

As the rising costs continue to bite, the pressure is telling in more and more ways as households are looking at how they can save money.



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