Rural areas 'harder hit' by cost-of-living crisis, new report suggests

A report entitled Rural cost of living and commissioned by Rural Services Network says people living in country areas earn less and pay more across a range of areas including heating, transport, house prices, rent, food prices, child-care costs and council tax.

The reduction in fuel bills needed to take rural households out of fuel poverty is £501, compared to an England average of £223, the report suggests.

Meanwhile a greater reliance on cars means rural households spend 50% more a week on average than urban dwellers - eating further into their disposable income.

Rural areas face distinct disadvantages compared to urban areas, says CLA East boss Cath Crowther (Image: Newsquest)

Housing costs are higher - and availability of homes limited. Rural house prices are 39% higher than in urban areas across England - excluding London - with rural villages and hamlets increasing to 55%, says the study. Rural rents jumped 11% during the pandemic compared to just 2% in urban place, it said.

Rural Services Network chief executive Graham Biggs said outdated infrastructure and other factors such as poor transport and broadband connectivity, employment opportunities and housing demand meant rural areas were "more isolated than maps suggest".

“Rural areas have systematically faced higher costs and disadvantages compared to urban counterparts, which is leaving communities more vulnerable.

“While the recent government energy support package is welcome, rural areas are facing a triple burden of higher heating and transport costs, while also earning a lower income. As the report shows, other costs of living are also higher for rural people than their urban counterparts.

"The government must overcome policy silos and develop an integrated approach that recognises the multiple forms of disadvantage rural areas face. This should include levelling up the rural economy to ensure that low wage levels can be improved, as well as supporting rural houses to become more energy efficient to help get families out of fuel poverty. Many rural homes which are off the gas network are more difficult and costly to heat and insulate."

Country Land and Business Association (CLA) East director Cath Crowther said: “Rural areas face distinct disadvantages to urban areas – which is why the CLA has its long-running Rural Powerhouse campaign designed to unleash the potential of the rural economy.

“A lack of affordable housing, poor connectivity and transport links, and a planning system that makes it more difficult for rural businesses to expand and create jobs, has led to the rural economy being 18% less productive than the national average.

“Add to that the cost-of-living crisis and increased fuel costs it fast becomes a perfect storm. Many rural homes are, by their age and design, far harder and more expensive to heat. The simple truth is that many rural homes cannot ever be insulated well enough to meet the minimum rating of C that government is demanding.

“Our Rural Powerhouse campaign seeks to unleash the potential of the rural economy, creating skilled jobs and stronger communities in the process. By closing this productivity gap, we could add £43bn to the national GDP and support rural businesses to thrive.”