Exeter CAB reports huge rise in urgent debt
Leading local advice charity, Exeter Citizens Advice Bureau, today publishes its advice trend statistics for the period 1 April – 30 November 2015.
Clients with urgent, or priority debts, owed an average of £5,383.64 to their creditors, an increase this financial year of 80%, or £2,405.60 per client. 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. Coupled with increases in enquires about things such as housing benefit, council tax arrears, and tax credits this 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 trends in the amount of advice that the charity has been able to provide compared to the period April – November last year, was as follows:
Welfare benefits
Overall, the charity has dealt with 28% more welfare benefit enquires this financial year. The main increases being:
• 35.6% about disability benefits (PIP/DLA)
• 33.7% about housing benefit
• 32.2% about tax credits
• 20.0% about employment and support allowance
Debt
Overall, the charity has dealt with 4% fewer debt enquires this financial year. The main changes being:
• 33.7% increase about council tax arrears
• 9.7% increase about local authority rent arrears
• 7.2% reduction in average client debt amounts (£11,360.66)
• 19.4% reduction about bankruptcy and debt relief orders
• 64.6% reduction about payday loans
Employment
Overall, the charity has dealt with 30% more employment enquires this financial year. The main increases being:
• 71.6% about dispute resolution
• 30.9% about dismissal
• 30.4% about pay and entitlements
Housing
Overall, the charity has dealt with 40% more housing enquires this financial year. The main increases being:
• 73.3% about actual homelessness
• 35.7% about private sector property
• 31.3% about threatened homelessness
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. We need to see more action from the Government 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 continued: “The worry is that these increases come before the impact of Christmas spending is felt. In addition, households need to be primed and ready for a rise in interest rates. Many people are just about managing financially which means even a small interest rate rise can tip them over the edge. Any rise in interest rates must be slow and steady so people have time to adjust. Creditors can help borrowers by explaining the impact a rise will have and help them to prepare, as well as recognising where they can be flexible to help people keep afloat.”
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 (www.exetercab.org.uk)”
Alternatively, donations can be made in person at the Bureau offices on Dix’s Field in Exeter.
