The cost of living crisis has already had an impact on households in Wales who are experiencing the cost implications of rising inflation as well as significant increases to their energy bills.

Citizens Advice Cardiff and Vale provide advice services on a range of issues. We also use the data we collect to better understand the challenges faced by the wider community and advocate on behalf of our clients. Over the last 14 months we have started to see an increase in clients accessing our services on issues relating to the cost of living crisis and therefore, have been able to use this data, case studies and our knowledge of the two local authority areas to create this report with a view to better understanding the triggers and offer recommendations.

The key findings of this report are:

• Households in Cardiff and Vale of Glamorgan face some of the highest average rent costs in Wales, with a significant proportion of properties owned by private landlords (55% in Cardiff and 52% Vale of Glamorgan). Those that are on a lower income and therefore eligible for support with their housing costs could face a shortfall either as a social housing tenant due to under occupying their property, or as a private tenant because Local Housing Allowance rates are not in line with average rent.
• It is estimated that 45% of households in Wales will be classed as fuel poor due to the recent increase in the energy crisis. Any household that is on a standard tariff and prepayment meter, where the annual income is £20,170 or less, will likely be pushed into fuel poverty.
• There is some financial support available to eligible households but there may be groups of people that are unable to access this, for example, households that do not fall within council tax bands A-D. It is important that the most vulnerable within this group are identified and offered the advice and support required. The majority of clients that we have supported on related issues have reported that they have a disability or long-term health condition.
• There is an increasing reliance on Foodbanks, which further demonstrates the inability for households in Cardiff and Vale of Glamorgan to afford basic essentials.