Covid 19 has had a very severe impact on local communities in terms of the impact on people’s health and wellbeing, loss of income, loss of jobs, long periods of anxiety and isolation.

In December 2021 there were 3,015 people in Herefordshire (aged 16+) claiming out-of-work benefits, which is 43% higher than in March 2020.

Provisional data suggest there were 11,516 Universal Credit claimants in Herefordshire in November 2021, well above the 5,983 seen in March 2020. In Herefordshire, UC claimants currently comprise 10% of the working age population. According to the Institute for Fiscal Studies, rising inflation would mean a 3% real cut in benefits year on year even before accounting for the removal of the £20 per week Universal Credit uplift.

Increases in wholesale energy prices mean that across the country, energy bills could rise as much as 50% in spring 2022. In 2019, there were an estimated 84,000 households in Herefordshire, 16.5% of which were in fuel poverty (13,900); a higher proportion than in England as a whole (13.4%). The majority of households affected by fuel poverty live in rural areas. There is likely to be a significant increase in this now and in the forthcoming months. Statistics from CAB Herefordshire for April – October 21 indicate that fuel debt was the top reason that residents seeking debt advice from the CAB. The Money Charity (the UK’s Financial Capability charity) reported that the total unsecured debt per UK adult in October 2021 was £3,713.

Whilst there are no up to date statistics for measuring food poverty in Herefordshire, there are increasing numbers of people in crisis situations: in 2020, 10,889 food parcels were distributed across five food banks in the county. The Children’s integrated needs assessment 2019 also noted that around 1,900 county school children are eligible for free school meals.

Consultation with local organisations supporting those households struggling to manage finances has identified targeted support for fuel poverty – both Herefordshire Community Foundation and Severn Wye Energy Agency had pre-existing schemes with an excellent track record in reaching those in need; and targeted support to help households with essential items / supplies – NILS has a pre-existing scheme with an excellent track record.
Funding has been agreed as follows:

Name of organisation Support Funding awarded
Herefordshire Community Foundation Fuel poverty £20,000
No Interest Loan Scheme (Tenbury NILS Scheme) Fuel poverty £20,000*
Severn Wye Energy Agency Essential household supplies £20,000+
Total £60,000

* Scheme has received £10,000 through Herefordshire Council in 2021/22 – 31 households (April to December 2021)
+ Scheme has receive £10,000 through Herefordshire Council in 2021/22 – 78 households supported to date (April to December 2021)