A progress report explained the council’s response to the crisis and details investments and funds that have been made available to residents.

The report, which was presented to cabinet following the last update in November 2022, highlights that challenges for residents, communities and businesses have been impacted by the Coronavirus pandemic, the war in Ukraine and economic unpredictability.

This has been compounded by the energy crisis, increased inflation and increased interest rates, and has resulted in higher household prices, which have created hardship and financial exclusion for people across North Ayrshire.

Many households are expected to continue struggling financially due to high gas prices and wages stagnating, although the Bank of England predicts that inflation will fall to around four per cent by the end of this year.

The council’s top priorities include tackling child poverty and supporting residents through the cost-of-living crisis. The three key drivers of child poverty are income from employment, income from social security and the cost of living.

North Ayrshire now has the seventh lowest employment rate, an improvement on the second lowest in Scotland (73.6%) compared to a Scottish average of 74.4%.

And the North Ayrshire rate for claimants as a proportion of the working-age population (aged 16-64) is 4.6% compared with 4.3% for East Ayrshire and

3.7% for South Ayrshire and a Scottish average of 3.3%. The rate for North Ayrshire has remained the same while other areas’ figures have increased.

In June last year, Cabinet agreed to establish a board to tackle child poverty – and this board now also oversees the Council’s response to the Cost-of-Living Crisis.

Council leader Marie Burns, chair of the Child Poverty and Cost of Living Board, said: “This report demonstrates how we, as a local authority, have made helping our residents through the Cost-of-Living a priority.

“A lot of important work is being done to mitigate the effects of the current financial climate on our residents, helping to make our communities more resilient and boost the local economy.

“It is vitally important that we continue to work with our community partners and consult our residents to ensure people have access to the support they need and make them aware of all funding that is available.”

Themes examined by the board - through a series of mini enquiries with community groups, residents and partners - have included employability, access to food, childcare, challenges for people living on Arran and Cumbrae and No Wrong Door, which is an approach geared towards ensuring residents who ask for Cost-of-Living information are directed to the correct support, regardless of who they ask within the Council or partner organisations.

The outputs from this work have informed the three-year Child Poverty strategy and annual report. Going forward, themes covered will be: Energy Advice and Support; Food; Clothing and Essentials; Finance and Benefits;

Children and Families; Health and Wellbeing; Business and Community, including transport for work.

Current funding associated with these themes includes:

• EnergySmart: Set in the council’s Budget in March, this is an underspend in excess of £1 million – value TBC – from 2022-23. The aim of this is to scheme which aims to reduce fuel poverty and increase affordable warmth, while also reducing carbon emissions and providing local employment opportunities.
• Early Intervention Fund – a one-off investment of £1.4m over three years to replace the Cost of the School Day. This includes £100,000 for a community transport initiative
  Community Investment Fund (CIF) allocation of £45,767 to Ardrossan-based debt advice and homelessness prevention charity CHAP for community-based outreach advice services
• Free school meals and holiday meals for P4-P5 children – Scottish Government funding of £2.272m
• Island Cost Crisis Emergency Fund: Scottish Government funding of £63,000 in revenue and £17,000 in capital and
• Parental Employment Support Fund (PESF): Scottish Government funding of £282,132.