Exeter CAB reports huge rise in urgent debt
Leading local advice charity, Exeter Citizens Advice Bureau, has today published its advice trend statistics for July 2015.
The charity helped 17% more people; with 2435 people helped directly with advice and information on 5446 individual problems since 1 April 2015.
Clients with urgent, or priority debts, owed an average of £3,039.92 to their creditors, an increase of 122.3% on the previous year. Urgent debts include things like mortgage, rent and council tax.
The increase in the amounts owed to urgent, or priority, creditors is a real worry. It is a clear indication that for those in debt many are struggling to keep up with essential costs such as mortgage, rent and council tax payments. The decline in payday loan enquiries is very welcome and follows new regulations introduced by the Financial Conduct Authority and enforcement action against lenders. The Government cap on payday loans also appears to be taking effect.
The amount of advice that the charity has been able to provide compared to last year, was as follows:
Welfare benefits
Overall, the charity dealt with 14% more welfare benefit enquires. The main increases being:
• 23.0% increase in enquiries about housing benefit
• 19.5% increase in enquiries about disability benefits (PIP/DLA)
• 16.7% increase in enquiries about employment and support allowance
Debt
Overall, the charity dealt with 34.6% fewer debt enquires. The main changes being:
• 34.2% increase in enquiries about catalogue and mail order debts
• 13.2% increase in enquiries about council tax arrears
• 15.3% reduction in average client debt amounts (£10,665.55)
• 66.1% reduction in enquires about payday loans
Employment
Overall, the charity dealt with 7.9% more employment enquires. The main changes being:
• 28.5% increase in enquiries about dispute resolution
• 12.5% increase in enquiries about dismissal
• 7.9% increase in enquiries about pay and entitlements
Housing
Overall, the charity dealt with 12.6% more housing enquires. The main changes being:
• 22.2% increase in enquiries about local authority property
• 20.8% increase in enquiries about owner occupier property
• 7.1% increase in enquiries about private sector property
Exeter CAB Chief Executive Steve Barriball said: “The growing economy needs to lead to a more secure future for all; whether people are starting out as self-employed; a parent trying to balance work with childcare or someone who is in work but needs extra support. These are all features contributing to other increases in client enquiries.“
Steve continued: “With the Government having now published its spending plans for this Parliament, we need to see more action to address failings in the benefits system, provide more security for those in work, and provide additional assistance to those struggling to get on the property ladder; either as property owners or tenants.”
Steve finished by saying: “Our commitment is always to provide the advice people need for the problems they face. However, we can only continue to do this if we have the necessary resources and we need to increase public and business donations. Anyone wishing to support our work can donate on-line by going to the Donation Support section of our website."
Alternatively, donations can be made in person at the Bureau offices on Dix’s Field in Exeter.
