The National Lottery Community Fund has made £2 million available to help organisations and the communities they serve to address the impact of the Cost-of-living Crisis in Wales. Rob Roffe, Head of Knowledge and Learning, explains why.

The cost-of-living is the highest that it has been for decades. Inflation is projected to reach 11 percent by the end of 2022. International crises like the Ukraine War have driven up the cost of domestic energy, petrol products and food prices while back home there are more jobs than they are people to fill them. Taken together, these have pushed inflation up to its highest level for 40 years and its left many struggling to pay their bills, particularly those who are already vulnerable.

We are concerned about the impact that this is having on our grant holders and the communities across Wales that they serve. We asked them what impact it was having on them and those they supported, and what we might be able to do to help.

Our grant holders have told us that they are struggling to meet demand for their services. Demand for money management guidance, welfare advice and mental health support is unprecedented, while foodbanks and community pantries are reporting a drop in donations when demand for their services has never been higher. Projects that offer outreach support are facing much higher travel costs which limits the amount of support that they can offer. The cost of petrol and diesel is also deterring volunteers from offering more of their time as its costing them more to get to the organisations and projects that they support.

And for almost all grant holders, increased overheads, particularly in relation to their own energy bills, are becoming a significant cause of concern. This all impacts on the ability of organisations to provide support to people at a time when they need it the most.

For communities, the impacts are varied. Many are struggling to pay domestic energy bills and other basic living costs, with reports of some skipping meals to prioritise feeding their children, or simply because they are struggling to afford to buy food. Getting around is either expensive or increasingly unaffordable, with some not even having the funds to use public transport. This makes it difficult to get to school, work or hospital appointments. For families, childcare costs are a big concern with some debating whether it would be cheaper to give up work to look after their children instead.

For people who are already struggling financially, they have reached a crisis point. Unable to economise any further, some are driven to expensive short-term borrowing to try to make ends meet, and an overwhelming sense of being unable to cope is detrimental to their mental health.

With many communities having already been hit hard by the Covid-19 pandemic and not having had ample time to recover, the arrival of the Cost-of-living Crisis has created unprecedented challenges. The Fund wants to be here for organisations and communities, and we will work to ensure that funding reaches where it’s needed as quickly as possible. We will work with existing grant holders to ensure the viability of their projects, and we will also make additional funding available to new projects that look to make a difference.

This is why we have launched our Cost-of-living response. Alongside continued support for other projects, we have introduced a new set of priorities to National Lottery Awards for All and People & Places. We have made an extra £2 million available so that we can:

• Support people, communities and organisations that are facing increased demands and challenges as a direct result of the cost-of-living crisis
• Support people, communities and organisations with the direct and indirect impact of the cost-of-living crisis
• Support organisations experiencing current cash flow problems resulting from losses or short-term liquidity challenges as a direct result of the cost-of-living crisis.