Cost of living crisis remains a major issue for people living in Glasgow

The cost of living crisis remains a “major issue” in Glasgow, with research showing around 89,000 households “will continue to struggle to make ends meet”.

High energy costs continue to “squeeze the disposable income of those households earning the least”, an update to councillors states.

The report, based on the latest research by the Glasgow City Region intelligence hub, adds the cost of living has “increased to a point that the weekly disposable income is just enough to cover the average weekly expenditure of the poorest households”.

The crisis relates to the fall in income experienced since the covid pandemic and the war in Ukraine. Officials say that drop “decreases the standard of living for residents… as the cost of essential items, such as energy and food, increase at a greater rate than increases in wages”.

In the report, they add this remains a “major issue” in Glasgow. It states consultancy firm Cornwall Insights has said high energy prices are “likely to be the ‘new normal’ due to continuous geopolitical risks in the Middle East and the war in Ukraine”.

However, new forecasts do predict bills will reduce “slightly” by 1.4% in April, falling to £1,713 per year for a typical ‘dual fuel’ — gas and electricity — user before “dipping slightly again in July”.

Council officials say: “This provides some additional financial relief for low-income households, assuming other factors remain unchanged.”

More than 50% of people in Glasgow live in social (34.9%) or private (16.9%) housing, with 46.7% owning their home, the report states.

Across the city region, which includes seven neighbouring council areas, those figures are 23% social rented homes, 9.5% in the private rented sector and 66.5% owned. Glasgow also has the highest share of social housing built pre-1918, with around 15% of its stock.

Older housing is often “less energy-efficient, with poorer insulation and outdated heating systems, leading to higher energy consumption and costs”.

Officials report this shows the need to retrofit properties to tackle fuel poverty, which can drive down costs for both social landlords and residents, improving “the quality of life of the most vulnerable people”.

They add the continued crisis is “likely to drag people into poverty”, which also increases “pressure and costs on council service delivery”.