advice – Page 49 – The NEN – North Edinburgh News

Bid to cut presence of payday lenders in communities

The face of Scotland’s high streets changed markedly during the recent recession – as household names like Woolworth’s, Jessop’s and HMV disappeared units often lay empty for months. Some were replaced by pound shops or charity shops but the other notable feature was the growing presence of the payday lenders on our shopping streets – and the Scottish Government is now making moves to limit their numbers.

Tighter regulations and stricter planning procedures will help limit the numbers of new payday lenders on Scotland’s high streets, Local Government Minister Derek Mackay announced on Friday.

The measures which are designed to minimise the presence of payday lenders in communities are set out in a new 12 point Scottish Government action plan.

The plan is a result of Scotland’s first Payday Lending Summit earlier this year and based on feedback from local authorities, advice services, welfare organisations and credit unions who attended.

The preventative measures also include the introduction of a new Financial Health Service which will serve as a one-stop-shop for money advice services, and there is an emphasis on promoting credit unions.

Launching the plan on a visit to the Glasgow Central Citizens Advice Bureau, Mr Mackay said:

“This action plan reinforces our commitment to addressing the problems associated with payday lending and sets out a number of actions that we will undertake across a range of policy areas.

“Payday loan companies are not only blighting our high streets but they are exposing people to financial credit they just cannot afford.

“Bringing the industry together at the Payday Lending Summit was a real opportunity to share ideas and discuss ways of reducing the problem of payday lenders in town centres.

“I won’t pretend that this action plan will solve the problem overnight but it’s a step in the right direction. Through legislation we will remove some of the exemptions from planning control on premises that sell pay day loans. This will allow planning authorities to implement policies addressing future clustering and over-provision of such activities. The planning proposals also include similar changes regarding controls on betting shops.

“We’re making conditions tougher for payday lenders by excluding them from small business bonus schemes and working with the Financial Conduct Authority to tighten up regulations.”

Mr Mackay continued: “We’re taking steps to tackle the issue of problem debt through legislation such as the Bankruptcy and Debt Advice (Scotland) Act, but raising awareness of alternative ways of accessing credit is key. By showing people payday lenders are not the only option we can lessen the demand for the service.

“Our new Financial Health Service website will bring together different strands and sources of information and advice, so that anybody with a concern or an issue to do with debt or borrowing can find, in one place, the help and assistance that they need.

“With our limited powers we are doing what we can, but with independence we could do so much more to act quickly to offer protection to consumers.

“Whilst we welcome the tougher FCA regulatory regime and the consultation on a cap, the UK Government have been slow to act. We have been calling for a cap on the cost of pay day loans since 2012. In an independent Scotland we can act more quickly to protect Scottish consumers, and introduce policies and measures that reflect the needs of people living in Scotland.

“Tackling the increasing numbers of payday lending businesses will not only stop more people being driven into poverty, but will help give our town centres a sense of identity and be more attractive places for people to live, work and visit.”

There are an estimated 180 to 200 payday lenders on Scotland’s high streets.

Case Study

Stewart*, 46, owed £18,000 in unsecured debts, and tried various fee-charging debt management companies before contacting StepChange Debt Charity.

Stewart said: “Although I was working full-time, I found myself relying on credit cards to pay for things like bills and food shopping.

“When my cards were maxed out, I was refused more credit by my bank and offered no help.

“I felt like I had nowhere else to go, which is when I turned to payday loans and I ended up relying on them to get me through.”

Stewart was able to take out three payday loans despite already having significant debts.

He also noticed a dramatic rise in nuisance calls, texts and emails offering further loans and debt management services.

Owing £18,000 in unsecured debts, Stewart tried various fee-charging debt management companies – who he says charged administrative fees and kept important information hidden – before contacting StepChange Debt Charity.

He is now repaying his debts through a Debt Management Plan, and says he would never be tempted to take out another loan following his bad experiences.

Stewart continued: “I can remember waking up in the mornings and thinking this is going to be a struggle. I’m really happy now, and going back to that is not something I could even think about.”

* Case study name changed to protect identity.

Susan McPhee, Head of Policy and Public Affairs at Citizens Advice Scotland gave a presentation on the problems CAB clients have at the summit in April. She said:

“There has been a proliferation of payday loan shops throughout our communities so we welcome moves to restrict them though the planning process. Accessing loans through a payday lender seems easy when so many shops are on our high streets and lenders bombard us with adverts for credit. But paying back such loans is not always easy and it is often the poor practices of payday lenders that cause problems to occur for people who can easily get into difficulty making their repayments.

“Citizens Advice Bureaux in Scotland are dealing with over 100 cases involving payday loans every week and our research shows that a fifth of people access such loans through high street shops.

“It is often poor practices by payday lenders that cause problems which is why CAS has campaigned for several years now to tackle to the unfair practices of payday lenders and make sure the people of Scotland know that their local CAB can give them advice and help if they do get into difficulty.”

Anyone who needs debt advice can get free, confidential help from their local CAB or from our helpline on 0808 800 9060.

Sharon Bell of StepChange also presented at the Payday Lending Summit. She said:

“This Scottish Government action plan is welcome – anything that better protects consumers from these loans and their potentially damaging repercussions is good news.

“We see too many people falling back on such high cost credit in order to either cope with existing debt problems, or just to make ends meet, often to damaging effect. Taking on this type of borrowing is not a solution to financial difficulty, and instead these people need better protection from the pressures of debt.

“StepChange is calling on policymakers to consider the idea of ‘breathing space’ – a break from interest, charges and enforcement, where debts can be repaid over an agreed period – so debtors in difficulty don’t have to keep borrowing to service borrowing.

“We also need a better short term credit market, where banks, credit unions and employers play a role in providing more responsible sources of loans and we hope the UK Government will do more to promote such schemes.”

StepChange Debt Charity Scotland offers free and impartial debt advice and solutions through its freephone helpline (0800 138 1111) and online (www.stepchange.org).

Local free, independent debt advice is available at Granton Information Centre on West Granton Road, telephone 551 2459 or 552 0458.

News from Total Craigroyston

Total Craigroyston’s Summer newsletter is out now. Click on link below …

Total Craigroyston Summer newsletter

Don’t lose out: tax credits deadline looming

With the tax credits renewal deadline of 31 July just ten days away, HMRC has revealed the top 10 excuses for not renewing tax credits claims.

Excuses given by claimants to HM Revenue and Customs (HMRC) for missing the deadline include:

I didn’t need the money because I’d met a rich bloke, but he dumped me
My mum usually does this for me
The form was locked in the boot of my car, and then my car caught fire
My baby used the paperwork as a colouring book
My dog ate the form
I got confused with the 31 January Self Assessment deadline
I booked the last two weeks of July for a holiday and forgot all about it
I’ve been in hospital but am feeling much better now
I was unable to get income details from my employers in time
I thought I’d already renewed

Claimants have until the 31 July deadline to renew, or their payments might end – last year more than 650,000 failed to renew on time. This year, for the first time, claimants can renew online, at GOV.UK, as well as being able to renew by post and phone.

Nick Lodge, Director General of Benefits and Credits, HMRC, said: “By 15 July over 203,000 claimants have renewed online. It’s a quick and easy way to do it. Renewing tax credits on time is important. People who don’t renew by the deadline can, and do, lose their payments.”

HMRC asks all claimants to check the accuracy of the information in their renewals pack, and to tell the department about any changes to their circumstances that they haven’t already reported, such as to their working hours, childcare costs or pay.

Granton Information Centre’s Caroline Pickering said: “There has been quite a big media campaign to remind people that they must renew their claims, and it really is important that they do so by 31 July. Many of our clients first approach us with money problems, and any loss of income can have really serious consequences for families who are often living on the tightest of budgets”.

NHS24 offers summer holiday health advice

WITH the school summer holidays fast approaching, Scots are being urged to prepare ahead to ensure they have a safe and healthy holiday, whether at home or abroad.

Scotland’s national telehealth and telecare service, NHS 24, is advising people to visit www.nhsinform.co.uk to get helpful tips and advice on summer holiday health issues, from sunburn and stings to travel sickness and heat exhaustion.

A dedicated ‘Safe Summer in Scotland’ section provides advice on how to stay safe in the heat and sun, as well as information on how to avoid outdoor hazards, travel tips and the safe preparation of food.

NHS 24 Medical Director Professor George Crooks said: “It is always a good idea to be prepared whether on holiday at home or abroad and the wide range of information available at www.nhsinform.co.uk can help you do just that. Whether it is finding out what vaccinations to have before travelling, what to do when an upset tummy strikes or how to deal with insect bites, the information is readily available.

“If you take regular medication, make sure you have enough to last for your whole trip. Remember to order and pick up your repeat prescription in plenty of time before your departure to prevent any last minute delays or unnecessary panic.

“It is essential to always wear sunscreen when out in the sun, even in the UK. I would urge everyone to use a high factor sunscreen to protect themselves against the sun’s harmful rays. And if you are planning any picnics or barbecues in the coming weeks, it is important to keep food refrigerated until you leave home and use a cool box or bag to transport fresh food, particularly if you are taking meats or dairy products.

“By taking these simple steps, you can help minimise or even prevent minor health problems from ruining your holiday.”

NHS 24 is now available on the free phone number 111. By dialling 111, people across Scotland can continue to access the same high quality service for anyone seeking advice and support during the out of hours period when their GP surgery is closed.

CY4You: New service for vulnerable young people launched

CY4You, a one-to-one support service to help vulnerable young people, has been officially launched by the specialist relationships and sexual health charity Caledonia Youth.

Stacey Burns and Rachael Mulhern, two young women who have benefitted from Caledonia Youth services, helped launch the initiative and were joined by Kezia Dugdale MSP, Shadow Cabinet Secretary for Education and Lifelong Learning and the Caledonia Youth team for the CY4You launch at the charity’s city centre facility at Castle Terrace.

Representatives from education, social workers, the voluntary sector and funders heard Rachael (18) and Stacey (24) describe their experiences and explain how they were supported by the Caledonia Youth one to one service.

Rachael had suffered from serious confidence issues at a transitional stage leading up to her leaving school and moving into employment, and Stacey had experienced relationship difficulties, stemming from a brain tumour when she was just five. The service helped them cope with these problems.

“We are delighted that Rachael and Stacey shared their own stories to help us launch our innovative CY4You initiative, along with Kezia Dugdale MSP who has been most supportive of our services,” said Caledonia Youth Chief Executive Hawys Kilday.

“CY4You is a fundamental part of our overall strategy to ramp up the provision of preventative services in Scotland. It builds upon years of experience delivering specialist one to one support and counselling services, which have benefited hundreds of vulnerable young people.

“It supports them by providing sessions tailored to suit each individual’s personal circumstances. We focus on a young person’s ability to cope with the transition into adulthood, aiming to improve resilience, reduce risk taking behaviour and enhance personal and family relationships. We also support those at risk of sexual ill health, sexual abuse and exploitation.

“We are most grateful to our funding partners, the R S Macdonald Charitable Trust, the Volant Charitable Trust and Ponton House Trust, whose support lets us deliver CY4You in the Edinburgh and Lothian region. Moving forward, we will be actively seeking further backing to help us extend as a centre of excellence and widen the reach of this unique service across Scotland.”

Kezia Dugdale MSP said: “Caledonia Youth has a strong track record in being dedicated advocates for young people, and I am delighted to see the launch of this innovative one-to-one service.

“Caledonia Youth excels at providing specific sexual health services for young people, something which I firmly believe should be supported. Young people need dedicated services, with people trained to deal with the needs of a young person, be it medical or emotional.”

The CY4You service, which complements statutory Relationships, Sexual Health & Parenthood Education (RSHPE) by providing much needed and more intensive individual support, begins with the preparation of an individualised plan and bespoke materials following a discussion based needs assessment, when learning outcomes are also agreed.
Young people are given the opportunity to attend up to 10-one hour sessions with an assigned member of the CY4You team. Information is only shared with the young person’s consent unless it is deemed a Child Protection or Vulnerable Adult issue when the relevant individuals are informed.

Young people must be under 25 and, at present, resident in Edinburgh and the Lothians when CY4You sessions begin. One hour sessions are delivered at Caledonia Youth’s Edinburgh facility at 5 Castle Terrace, unless otherwise agreed.

For more information on how to refer to the service contact the CY4You team on 0131 229 1402

email: cy4you@caledoniayouth.org

or online at www.caledoniayouth.org

Join Scotland’s fight against fire

Members of the public have been urged to help firefighters reach vulnerable residents so they can prevent house fires and the deaths, injuries and emotional trauma they cause.

Assistant Chief Officer (ACO) Lewis Ramsay, the SFRS Director of Prevention and Protection, explained: “Fire in the home can be both terrifying and tragic, but simple steps will significantly reduce the risk of it happening to us.

“I am calling on everyone to consider the risks in their homes and the homes of people around them, and then to take potentially life-saving action.

“Firefighters have the terrible experience of attending serious fires, where people have been killed or injured, that need never have happened.

“My message to everyone is don’t let that happen to you or the people around you. Everyone can save lives and protect themselves and their families, friends and neighbours from fire.”

The latest stage of the Join Scotland’s Fight Against Fire campaign emphasises the need for all homes to be protected by working smoke alarms, which are known to have a dramatic impact in preventing injuries and deaths.

People should also consider fitting a heat alarm within kitchens – the room where most house fires start – as the devices are specifically designed to give early warning of fire.

ACO Ramsay continued: “The evidence is clear – working smoke alarms have saved lives and are absolutely essential items for every household.

“It is widely acknowledged that working smoke detectors raise the alarm very quickly, meaning there is less chance of fire causing serious injury to people and damage to property.

“More homes than ever are now protected by these life-saving devices and that has led to a noticeable reduction in the severity of the house fires we are called to tackle.

“Incidents where fire spread beyond the item that first ignited to engulf the whole room have fallen by 10 per cent, while cases where the fire spread to damage other parts of the house have fallen by 16 per cent.

“By quickly alerting people to the presence of fire, working smoke alarms give residents the time they need to get out and call us out.

“That not only prevents serious injury or worse, it also means firefighters can bring a fire under control before flames, toxic smoke and heat cause severe damage to a home and rob householders of cherished possessions.”

In an advert airing on television and radio over the coming days, a serving firefighter will share her memory of attending a house fire where a woman was killed.

Watch Manager Andrea Sutherland recalls how she and her crew found a woman in the living room, which was full with lethal levels of toxic smoke – even though the fire had burned itself out without spreading from the kitchen.

In a direct plea for the public to recognise the risks and make sure their smoke alarms work, Watch Manager Sutherland explains: “The lady had simply put something to cook in the oven.

“Like many people’s cookers, her oven door had a handle where she hung oven gloves and a tea towel.

“As she slept the heat from the oven must have built up until it set the tea towel on fire.

“A neighbour spotted the smoke and called us. There were two smoke alarms fitted in the house but she had removed the batteries.

“People often do this because they don’t like the alarm going off when they are cooking – but if this lady had kept her batteries in, she would probably still be alive today.”

In its Join Scotland’s Fight Against Fire campaign, SFRS is determined to help the public understand how easily fire can start within the home, as well as the simple precautions that save lives and property when fire does start.

As a routine part of their duties firefighters throughout the country deliver expert advice to help residents keep their homes safe, and SFRS wants the public to help it reach those most at risk.

ACO Ramsay added: “In the past year our crews conducted more than 56,000 free home fire safety visits, where they gave residents tips to prevent fire starting and to buy vital time if it does strike.

“Firefighters conducting free home fire safety visits will even install long life battery smoke alarms wherever they are needed – and it’s completely free of charge.

“It is a hugely popular and beneficial programme that gives vulnerable members of our community friendly support and some very welcome reassurance.

“We need help from members of the public to reach those most at risk. If you keep an eye on a vulnerable relative, friend or neighbour then put them in contact with us – it could save their life.”

Anyone can arrange a free home fire safety visit by calling the SFRS Freephone number 0800 0731 999 or by contacting their local fire station.

Further information on how to keep your home fire safe is available on the SFRS website: www.firescotland.gov.uk.

Millions face daily struggle with debt

Struggling with debt? Seek advice!

Recovery, what recovery? A new study compiled by the Money Advice Service highlights how 8.8 million people in the UK live with serious debt problems, but only one in five of this group is currently accessing advice to help with it.

The report, ‘Indebted Lives: The Complexities of Life in Debt’, brings insights from a survey of over 5,000 UK adults, and provides a much clearer picture of the lives of those struggling with debt.

It reveals that over four million people have been struggling to pay their bills for more than a year and admit their debt prevents them buying the basics – with families affected even more. The report sets out eight distinct groups of people who are in serious debt – families account for half.

Unsurprisingly, the majority of people who are struggling with debt said it has a negative impact on their life and three out of four admitted they are unhappy. But repaying debts is very important to four in five of the 8.8 million who said they would like to pay off their debt as soon as possible.

The Service is concerned to find only one in six of all adults experiencing debt difficulties is currently seeking advice to help them deal with their debt, and over two in five said they don’t feel able to talk to their creditors about their debt problem. Furthermore, one in five of over-indebted people does not actually recognise they are in debt.

“Millions of people could escape their spiral of debt by accessing free advice. We know it transforms lives and the sooner people access it the better – to take steps to improve their life for good,” said Caroline Rookes, CEO of the Money Advice Service.

“However, this study presents us with a fundamental challenge: the majority of people with debt difficulties do not seek advice. This is the first time we’ve had such a detailed understanding of the complexity of their lives.”

She added, “So now, armed with greater insights, we will work with advice agencies, creditors, and public bodies to help as many people as possible access free, high-quality, debt advice.”

Free and confidential advice is available locally at

Granton Information Centre (telephone 552 0458)

and Pilton CAB at Drylaw Shopping Centre (332 9434)

Tenants urged to take up rent payment help

Nearly half the Council tenants in Edinburgh subject to the UK Government’s under-occupancy charge – better known as the ‘bedroom tax’ – have not applied for extra help to pay their rent despite facing growing arrears and debt, it’s been revealed.

Almost 3,000 Council tenants are under-occupying their home and face paying between £14 and £25 per week as their housing benefit doesn’t pay for their extra room, but only around 1,500 of these tenants have applied for extra help available from the Council through Discretionary Housing Payments.

The Council was awarded extra funds from the Scottish Government in September this year, bringing the total available for Discretionary Housing Payments to over £3 million.

Recent figures from the Council’s housing service showed an estimated £1.25 million of arrears are attributable to people not paying the under-occupancy charge, which has been dubbed the ‘bedroom tax’.

City Housing Leader Councillor Cammy Day said yesterday: “It’s critical that hard-pressed tenants seek the extra help the Council is offering in the form of Discretionary Housing Payments, otherwise they face getting deeper into debt.

“Staff from the Council and advice agencies have been holding special surgeries and writing to, visiting and calling tenants over the last few months but ultimately tenants need to apply for the assistance available or they will lose out. I would urge any tenant who hasn’t yet applied for extra help to get in touch with their local housing office without delay.”

The under-occupancy charge was introduced to encourage tenants with a spare room to move to a smaller home. On average there is only ever one single bedroom property available to let for every 80 under-occupying households in the city.

Council tenants affected by the under-occupancy charge are encouraged to contact or call in to their local housing office for advice.

CAS urges fight back against unscrupulous lenders

The Citizens Advice service has launched a month-long campaign encouraging payday loan customers to fight back against unscrupulous lenders.

Three in four payday borrowers who got advice from the Citizens Advice consumer service had been treated unfairly by their lender and could have grounds for an official complaint to the Financial Ombudsman Service, says the national charity.

Citizens Advice’s in-depth analysis of 665 payday loan cases reported to its consumer service between 1 January and 30 June 2013, finds that at least 76% could have grounds for an official complaint to the Financial Ombudsman, including:

1 in 5 were possible cases of fraud – where a person was chased for a loan they hadn’t taken out.
More than a third involved issues with continuous payment authorities including money that was not authorised to be taken.
12% involved harassment whereby lenders pester people with phone calls and text messages rather than accept affordable repayment offers.
1 in 10 were about lenders’ unfair treatment of people in financial difficulties.

Latest figures from Citizens Advice Scotland’s (CAS) on-going payday loans survey show that lenders are frequently acting in breach of the Good Practice Charter, put in place last November. Scottish CAB advisers dealt with over 1,200 cases related to Payday Loans from April to June this year, and clients are frequently reporting breaches – see case studies below.

Citizens Advice Scotland and Citizens Advice England and Wales launched a month-long campaign across the UK on Monday, urging payday loan customers not to let predatory lenders get away with treating them unfairly.

Consumers who are finding it difficult to raise their payday loan problem with their lender can contact the Financial Ombudsman who will help them through the complaint process. There were 160 complaints made to the Financial Ombudsman between April and June this year about payday loans, with 72% upheld in favour of the consumer.

If a complaint is upheld by the Financial Ombudsman – and the consumer has lost out as a result – the lender can be ordered to put things right. Consumers could get a refund on loan repayments, interest or default charges or compensation for any inconvenience caused.

Citizens Advice Scotland Chief Executive Margaret Lynch said:

“Across Scotland our bureaux are seeing clients whose payday loan debts have spiraled out of control. We’re seeing hardship and misery caused across the country. Our clients feel powerless but they’re not. This campaign is all about showing them that it is possible to fight back. We want to show people who have taken out payday loans how to identify when their lender has treated them unfairly, and how to do something about it. Citizens advice bureaux can help you negotiate a fair repayment plan and complain to the Financial Ombudsman service. It might even be that the Ombudsman feels you’re entitled to a refund for an unauthorised payment or compensation for unfair treatment.’

As part of the campaign Citizens Advice has launched a new online animation to help people get on top of their payday loan problems. It explains that payday lenders aren’t allowed to take money from your bank account without you knowing, nor should they put pressure on to borrow more money or contact you at all hours of the day. Citizens Advice Scotland is also taking to Twitter with the hashtag #paydaywatch as bureaux from across the country tweet about payday loan cases they are helping with.

Advice tips if you’re struggling to repay a payday loan:

Your payday lender should accept a repayment offer which is reasonable.
Don’t be pressurised to extend your loan – it will cost you more
It’s not ok for your lender to ring you during the night or more than once a day chasing you for money, or to contact your employer.
You should be able to get in contact with your payday lender.
If you are having these problems you can do something about it
- Make a complaint by filling in our simple checklist at www.adviceguide.org.uk
- Get advice from adviceguide.org.uk, from the Citizens Advice consumer service (08454 04 05 06 or 08454 04 05 05 for Welsh language line) or your local bureau
- Make a complaint about a payday loan direct to the Financial Ombudsman Service consumer helpline on 0300 123 9 123 or 0800 023 4567 or via email complaint.info@financial-ombudsman.org.uk

Advice tips if you are in financial difficulty and considering a payday loan:

Get help with your money troubles. Your local bureau can provide debt advice and help you sort out your finances. By making a few changes you may be able to avoid taking out a short-term loan.
It is important to consider all the other options available to you before taking out a payday loan as they are expensive and could make your money problems worse.
Pay day loans can be a costly way to deal with short term financial problems and are not suitable for long term money troubles.
A loan from a credit union is more affordable – check if there’s a credit union in your area.
If you have a bank account, you may be able to agree an overdraft. But be careful of going overdrawn without permission and make sure you understand any fees and charges.
If you are thinking about taking out a payday loan to pay off other debts, don’t. Instead, speak to the companies you owe money to and agree a repayment plan. You can get help with debts from www.adviceguide.org.uk or your local citizens advice bureau.

Benefits cap roll out begins

A cap on the total amount of benefits that people of working age can receive has begun rolling out across the country. Couples and lone parents will now not receive more than £500 a week, while a maximum £350 will be the limit applied to single people.

The benefits cap is not due to be rolled out in Edinburgh until 15 August, but claimants should really be making preparations for the introduction NOW.

The cap is an element of the government’s radical overhaul of the benefits system, which Work and Pensions secretary Iain Duncan Smith argues is necessary as the present system is ‘unfair’. The government has set the cap at a level they say reflects the current weekly household income.

Most benefits – Jobseeker’s allowance (JSA), housing benefit and child tax credits all count towards the cap, but there is no cap for people who receive Disability Living Allowance or its successor, the Personal Independence Payment. Those eligible for Working Tax Credit are also exempt.

“The benefit cap returns fairness to the benefits systems,” Mr Duncan Smith said. “It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work.

“The limit of £500 a week ensures no-one claims more in benefits than the average household and there is a clear reason for people to get a job – as those eligible for Working Tax Credit are exempt.”

The DWP says about £90bn was paid out in benefit payments to people of working age and their families in 2009-10, and it expects the cap to save about £110m a year.

Shelter Scotland has issued the following advice:

‘If the benefit cap will affect you it’s a good idea to:

reduce your spending and focus on rent payments
make up any shortfall between your housing benefit and your rent by using other income.

If you still can’t afford your current home then you may have to consider moving somewhere cheaper. If you’ve received a letter from the DWP warning you that your benefits may be reduced, or you’re worried that you’ll be affected by the cap, talk to a money adviser who’ll be able to help draw up a budget.

It’s important to prepare for this as early as possible to avoid falling behind with your rent and being evicted. If you’re worried that you’ll be threatened with homelessness because of the benefit cap speak to an adviser in your area.’

The benefit cap will be implemented across the country by 30 September.