fbpx The impact of the cost of living crisis on our services – The Passage

The impact of the cost of living crisis on our services

Every week, the number of people seeking our help grows. Yet, as demand for our services rises, so do the costs to run our services, placing substantial pressure on our resources.

With disposable incomes continuing to fall across the UK, many households are struggling to keep up with the rising cost of living.

These financial pressures mean that many are being forced to make an impossible decision, choosing between paying rent and covering basic needs such as food, utilities, and healthcare.

For an organisation like ours, dedicated to offering immediate welfare resources and housing support, this crisis directly influences the demand for our services – something we are already beginning to see.

Passagear Web 18
Current estimates suggest that around 35% of renters are being pushed into poverty due to the surge in housing costs*

In January 2024 alone, 868 people approached our Housing Solutions Service for assistance — a staggering 195% increase from the previous year. This surge highlights the growing number of individuals at risk of losing their homes, due to factors like evictions, job losses, and soaring rents.

The rise in our service costs

As we navigate a surge in demand for our services, our teams are also working against escalating operational costs.

Providing immediate welfare services such as hot meals, showers, and laundry facilities to our visitors is an essential part of our services. Yet, in the past year, we have seen prices of food and resources soar by around 10 – 25%, placing a huge strain on our resources.

Untitled Facebook Cover 2 1
Costs to run our services are increasing rapidly, with food prices up as much as 10% from the year prior.

The graph above illustrates the year-over-year price increases of several essential items, including eggs, toilet rolls, and other necessities per kilos. For example, the cost of a kilo of chicken has surged by almost 13% from £3.50 to around £4.

This is just a snapshot of the increasing challenges we’re facing as an organisation working against the backdrop of a cost of living crisis, and housing emergency.

Beyond food costs, we’re grappling with rising expenses across our services – from utility bills at our facilities to the increased costs of providing direct support to our clients. This includes offering vouchers for essential services and goods, which have become crucial as more clients struggle with the immediate impacts of the cost of living crisis.

Despite these challenges, we remain committed to being a beacon of hope for those in need. We are continually inspired by the impact our community can have on the lives of others during these difficult times.

Together we have created lasting change; between January to December 2023, we successfully prevented 830 individuals from experiencing homelessness. This achievement highlights the power of our collective action.

But as our costs and the demand for services rise, we rely on your support more than ever. If you can, please consider donating to our cause today. With your help, we can continue to be there for those at risk of losing their home.

*UK Poverty 2024: The essential guide to understanding poverty in the UK, Written by Joseph Rowntree Foundation