By Emily Craigie and Alex Metcalfe
Families in Teesside could find themselves in for a difficult winter if the cost of living crisis continues.
Just this week, new figures revealed that inflation hit a 40-year high of 10.1% in July – the first time it has been in double figures since 1982. Ofgem is also expected to announce an increase in the energy price cap next week which could see bills skyrocket from an average of £1,971 per year to £3,582.
Industry analysts Cornwall Insight have predicted another rise to an average of £4,266 in January 2023, which would be a huge blow to households across our region.
The weekly food shop is also hitting budgets hard as products like milk, butter, pasta, cooking oils, toothbrushes, and toilet roll have all seen steep price hikes. This is partly due to the war in Ukraine, as Ukraine and Russia make up a third of global wheat supplies (impacting pasta and bread), and because of fuel increases meaning the transportation of goods is more expensive.
However, petrol prices have fallen since the peak at the start of July. According to data from petrolprices.com, at the time of writing, all 15 of the cheapest stations within 10 miles of Middlesbrough are below 170p.
Though even with fuel prices starting to decrease, families across Teesside are struggling to make ends meet. Labour councillor Sue Jeffrey, who represents South Bank and was a former mayoral candidate, recently grilled Tees Valley Mayor Ben Houchen over the crisis.
During a meeting where the focus was on the Tees Valley Combined Authority’s £1.3bn investment plan for the next decade, Cllr Jeffrey said she saw no evidence of efforts to support people through short-term pains. She argued that more could be done to retrofit homes with insulation, claiming the number of homes done in Teesside “only ran into the hundreds”.
As the co-ordinators of the North East and Yorkshire Net Zero Hub, the TVCA has secured £15.2m to retrofit homes for people on lower incomes. Mr Houchen claimed that the TVCA has tried to co-ordinate the retrofit scheme with all five local authorities but the councils said they would rather do it themselves.
Other investment includes £27.7m worth of Tees Valley Business grants awarded to 7,413 local businesses and entrepreneurs to help them grow as they face rising costs and £46.2million, out of a £310m sustainable transport fund, to improve the walking and cycling network to provide a cost-free alternative to private or public transport.
However, Middlesbrough Labour MP Andy McDonald has called on the TVCA to step up and do more. He said: “The Government’s lack of action to tackle the cost of living crisis is devastating for families across the country.
“People are already feeling the impact of rising costs of fuel and food and things are only going to get worse as we head into winter. Immediate action is needed alongside longer-term solutions to ease this crisis.
“Here, the Tees Valley Mayor promises jobs in the future but that is not going to help in the here and now. What is he and his government going to do to help families in Middlesbrough and the wider Tees Valley avoid being plunged into debt? We need concrete plans – photo opportunities and press releases won’t heat homes.”
Mr McDonald has also urged Mr Houchen to follow the lead of Greater Manchester Mayor Andy Burnham who has announced this week changes to local bus services to cap adult fares to £2 and deliver free bus travel for 16-18 year olds. He added that it was a shame that Mr Houchen did not share the “ambition and determination” of his North West counterpart.
However, on Thursday, 18 August, Mr Houchen wrote to Transport Secretary Grant Shapps to request that Teesside, Hartlepool and Darlington are also included in the same scheme as Manchester. In his letter, he stated: “The cost of living crisis is not a locational one, and I believe it to be only fair that the region I represent is treated the same as Greater Manchester.”
The TVCA also coordinated the Kids Go Free scheme which means that three children aged 11 or under can travel for free when accompanied by an adult throughout the summer holidays. Mr Houchen has said the focus of his work is driving investment, jobs and growth, which is making a real difference to the lives of Teessiders.
He added: “There is no denying that the cost of living crisis is hitting hard-working people across Teesside, Darlington and Hartlepool – and I’ve been extremely vocal in calling on Government to reduce this significant burden. While my work, and that of the Combined Authority, is to more widely drive investment, jobs and growth, a number of schemes we’re leading on are having an impact.
“From retrofit projects to make homes more energy efficient, giving people affordable transport alternatives to helping them access training to secure high-quality, well-paid jobs, we’re doing everything in our power to make a real difference for local people.”
He is also looking to the future and believes having Treasury jobs in Darlington will be a huge positive for the region. He added: “In the longer term, as the Darlington Economic Campus becomes more established, we’ll have the ear of Whitehall more than ever, with issues that seriously affect local people, like the cost of living, front-and-centre of policy and decision-making.”
The TVCA hopes the clean and alternative energy projects it’s pushing will bring down energy costs in the future as the country will be less reliant on fossil fuels.
Mr Houchen has previously told PoliticsHome that he does not believe either Rishi Sunak or Liz Truss understands the “storm that awaits them” when they become prime minister. He believes an emergency budget will be needed before the end of September to deal with cost of living pressures.
The government has come under fire in recent weeks and even branded a “zombie” state after Boris Johnson jetted off to Greece while the crisis continues. A government spokesperson said: “We recognise people are struggling with rising prices which is why we are protecting millions of the most vulnerable families with at least £1,200 of direct payments, starting with the £326 cost of living payment, which has already been issued to more than seven million low-income households.”
All households will also receive a £400 energy payment and vulnerable families are being supported by the Government’s £500m Household Support Fund.
This week, Labour leader Sir Keir Starmer set out his plan to address the crisis and has said his party would freeze energy bills for all domestic energy customers, provide support for people not protected by the price cap and ensure those on prepayment meters pay the same for energy as those who pay their bills monthly. He also wants to see 19 million homes insulated across the country over the next decade.
