Shropshire Council has announced urgent measures to prevent a looming financial crisis, with the threat of bankruptcy by next April. The local authority is estimated to go £35.2 million over budget this financial year. This more-than-unfortunate reality requires urgent efforts to increase spending efficiency.
The council’s fiscal woes come at the same time that living costs in the north—especially in rural areas—have risen sharply, hitting families particularly hard. Even in the last 5 months, rapid increases of food prices have further squeezed household budgets. To make matters worse, the energy price cap is set to rise once more on October 1. This new change will only add to the burden on many residents’ bottom lines.
Leanne Simcoe, manager of the local charity Little Stars, spoke to the increasing need for support in Shropshire. Little Stars, based in Oswestry and Shrewsbury, stock free baby and children’s essentials, which they give to parents. Specifically, Simcoe shared that since 2023 there has been a family referral increase of an incredible 176 percent from 2023 into 2024.
“Food prices have gone up astronomically for families, and everyone is feeling the pinch,” – Leanne Simcoe
240 Carol Wall, a lifelong resident, lost her husband Peter in 2021 and soon needed food bank assistance. She opened up about her challenges with the increased cost of living. Wall noted that her pension no longer adequately covers her living expenses, as she faces the same bills but now on a fixed income.
“Since Peter’s gone, I’ve only got the one pension. It’s only a small one, and I still have the same bills to pay, same electric, same water rates,” – Carol Wall
Wall expressed concern about the upcoming winter and anticipated fuel price hikes, stating, “Something’s got to be done because we dread the winter with the fuel rises going up again.”
Ruth Houghton, portfolio holder for social care at Shropshire Council, told worried residents that funds are in place to support the scheme. She drew attention to the need for ring-fenced funds to support those impacted by the rising cost of living. Among other things, this brings in the Household Support Fund. Financial help Houghton urged residents to not be afraid to pursue the benefits they deserve.
“There are some ringfenced funds around the cost of living and the Household Support Fund – they are available, and sometimes it’s as simple as people asking for help to access the benefits they’re entitled to,” – Ruth Houghton
Even with these steps being taken, the unprecedented strain being felt by local charities is a huge hurdle. Simcoe recognized that although the communities are creative to make themselves self-sufficient, they need additional resources.
“It will really put an impact on local resources, the charity sector will be doing all it can to help,” – Ms Simcoe
The reality of the situation on the ground is extremely serious, with nearly a third of children in Shropshire now living in poverty. Moreover, the long-awaited autumn budget in November now holds the bait of some benefit reforms. One area we will be looking at particularly is the long-controversial two-child limit on universal credit.
Houghton wanted to remind folks that local heroes and sheroes, usually local authorities, are doing everything they can to protect the most vulnerable. Most importantly, he encouraged people to call for assistance without fear.
“Communities are very good at supporting themselves, but people really shouldn’t be afraid to ask for help,” – councillor Ruth Houghton
