ONE in eight Scots are missing meals in the cost of living crisis as they prepare to spend an estimated extra £1,100 on energy and food a year.

The warning has come in a major study aimed at uncovering and understanding the key issues faced by consumers in Scotland which found nearly half had put the heating on less, whilst four in 10 (39%) had reduced their use of lights and appliances around the home.

The analysis found that 13% of Scots had gone so far as to skip meals to help make ends meet.

And about a third of people (34%) in Scotland said they would not be able to pay an unexpected bill of £300 either through their regular income or by dipping into savings, according to the analysis by consumer organsation Which.

Most of these would either borrow money or cut back on essentials to cover such a bill, but 6% said they would not be able to pay it at all and this rose to 18% of those with a household income of £21,000 or less.

It comes as a new report from the Trussell Trust revealed that a third of Scots claiming Universal Credit  said they had skipped meals because they couldn’t afford to buy enough food, and one in three (30%) said they had been unable to heat their homes for more than four days across the month. One in six had to rely on a food banks.

Which warned that things are only expected to get tougher for households in the months ahead, despite the support offered by the Scottish government and said it was clear that many households are going to need "substantial support" in the coming months.

"It is clear that many households are going to need substantial support in the coming months. This needs to reach those that are most vulnerable and support people in the short term as they deal with price cap changes and higher energy bills," said a group spokesman.

As well as the direct support provided by the Scottish government through council tax reductions and the £10m Fuel Insecurity Fund, Which said regulators and companies need to make sure they are ready to support customers in financial distress and treat their customers fairly.

The Herald:

The rising price of essentials will have a sizable and unavoidable impact on household budgets and the new analysis estimates that the share of household expenditure that is spent on food and energy in Scotland will be 21.4% in April 2022. This is an increase of 2.5 percentage points compared with the pre-pandemic share of 19%.

This means that consumers in Scotland will spend an additional £21.13 per week on food and energy in April 2022 compared to March 2020 - amounting to around £1,100 extra per year.

Which said that predicted price increases across a range of goods and services are only likely to increase the financial pressure on many households.

And they warned that average increases disguise the fact that some households will be much worse affected by the increase in inflation.

Higher rates of inflation for essential products are particularly problematic for lower income households because they typically have tighter budgets and it is harder to avoid price rises on essential products.

The survey of 1000 Scots found that nine in 10 (86%) were worried about energy prices, a huge increase on the nearly six in 10 (59%) who were worried last year.

Concern about fuel and food prices was also very high (81% and 77%), again a major increase on the last year when just over half (52%) and six in 10 (63%) were concerned about food and fuel.

And they found that Scots consumers are already being affected by higher prices with over two in three saying they had noticed higher food prices, and over half (55%) had experienced an increase in the price they pay for energy. Roughly one in six (16%) consumers in Scotland reported that their energy company had gone bust.

Rocio Concha, director of policy and advocacy at Which?, said: “Our research shows that rising energy, food and fuel prices are key concerns for Scottish consumers.

“Many more households will need support as energy bills and other costs rise in the coming months. Businesses and regulators - as well as the UK and Scottish governments - must work quickly to ensure they are ready to support anyone struggling to make ends meet."

The survey, which examined the views between November 30 and December 8, 2021 found that two thirds had noticed higher food prices, and over half (55%) had experienced an increase in the price they pay for energy. Roughly one in six (16%) consumers in Scotland reported that their energy company had gone bust.

Many consumers in Scotland who had experienced higher food prices reported adapting their behaviour by buying extra items when on promotion (40%), buying cheaper alternative products (49%) or using cheaper brands (41%). Others shopped around in different supermarkets, stores or online shops (46%).

Which, which is hosting a virtual event today attended by regulators and consumer bodies to discuss the findings from the Consumers in Scotland report found that the proportion of households in Scotland who said they had missed or defaulted on at least one mortgage, rent, loan, credit card or bill payment was 6% at the end of 2021.

Its analysis of inflation rates by household income at a UK level estimates that the share of domestic expenditure yhat is spent just on food and energy will increase by 3.1 percentage points for those on the lowest incomes, but by just 1.4 percentage points for those with the highest incomes.

This means that for households with the lowest 20% of incomes, averaging just £14,600 per year, 27.8% of their spending will be on just food, gas and electricity by April 2022. For those in the next lowest 20%, with average incomes of £24,000, this will be 24.5% of their spending. By comparison, for the 20% of households with the highest incomes, an average of £81,000 per year, this is estimated to be 14.4%.