As the cost of living increases and energy prices set to soar, debt charity encourages those who are unable to pay bills to seek support
As we start this new year, many people across Scotland are struggling with the increased cost of living impacting all areas of life. The cost of a food shop has increased alongside significantly higher fuel and energy costs. The upcoming removal of the energy price cap is set to see prices soar.
Christians Against Poverty (CAP) Scotland is deeply concerned that many low income families will see their debts rocket as they struggle to afford the basics. CAP surveyed around 900 clients across the UK during the pandemic and over a third (37%) said they regularly had to go without meals. Over half (56%) had borrowed money to pay for food, clothing and other essential living costs.
TIME TO SEEK FREE DEBT HELP
CAP Scotland is encouraging more people to seek help with problem debt now and not to wait until things get worse. Their message is clear, it is never too early or too late to get debt help.
CAP Scotland’s National Director, Emma Jackson, explains why this is so vital: “Over the past year we’ve seen the devastating impact of the cost of living increase hitting low income families hard. Before getting debt help, many of our clients were having to prioritise which bills to pay.
“No one should have to make the impossible choice between whether to heat their home or feed their children but sadly too many people in Scotland are having to do this right now.
“Too often shame and stigma keep people trapped in problem debt, 50% of CAP clients wait for over a year to get debt help. We are urging everyone who is struggling with problem debt not to wait until things hit crisis point.
“CAP Scotland provides free, professional and community based debt help. Our Debt Coaches can meet you in the comfort of your own home and stay with you every step of the way until you become debt free.
“Many other trusted debt help charities are also offering vital support with free debt help. The most important thing isn’t which charity someone chooses to call, it’s just making the call for help as soon as possible.”
Local charity Granton Information Centre is one of the organisations that are here to help.
Email info@gic.org.uk or telephone 0131 551 2459 or 0131 552 0458 to make an appointment or enquire about our outreaches.
The 2022-2023 Scottish Budget will help transition Scotland to becoming more prosperous, fairer and greener, Finance Secretary Kate Forbes has said.
Speaking ahead of delivering the Budget to Parliament today, Ms Forbes said the Scottish Government will deliver a bold and ambitious package of public investment that delivers on the priorities which matter most to the people of Scotland.
Ms Forbes said: “The Scottish Budget will provide taxpayers with stability and support, set out clearly how we will accelerate our Covid recovery, and crucially, how our spending plans will set Scotland on a new ambitious path.
“It has been a challenging Budget due to the continuing impact of the pandemic, and the uncertainty and worry that Covid poses for us all. This has been confounded by the UK Government’s decision to remove necessary Covid consequential funding at a time when we undeniably need to help our public services.
“The Scottish Government has taken spending decisions that prioritise supporting people and our vital public services through the twin crises of Covid and the cost of living. It is a budget for Scotland’s future – one that will help us secure a fairer, greener and more prosperous country.”
Responding to the Scottish Budget, Tracy Black, CBI Scotland Director, said:“While the Finance Secretary has outlined some helpful interventions for business, firms that have been working tirelessly to get back on their feet after two miserable years will be left with little to get excited about.
“The removal of the business rates cliff edge in April for hospitality, retail and tourism firms will be welcomed, however many will be disappointed that the government hasn’t gone further – particularly as uncertainty around Omicron gathers pace.
“Increased funding for employability is clearly a step in the right direction but much more detail is needed on how skills funding will help firms address immediate challenges. Ultimately, greater ambition is needed on upskilling and retraining if we’re to ensure workers are equipped with the skills they need for a modern economy.
“On green investment there were some welcome announcements around green jobs and just transition. However, failing to use the non-domestic rates system to incentivise private sector investment in low carbon infrastructure feels like a missed opportunity that could have helped Scotland push-on towards its net zero target.
“Overall, business shares the Scottish Government’s vision for a fairer, greener and more prosperous economy. Firms will be keen to see how the forthcoming National Economic Transformation Strategy turns ambition into action; setting Scotland on a path towards competitiveness, dynamism and productivity growth – which is the only sustainable route to higher living standards.”
Scottish workers bitterly disappointed by pay deal as STUC insists ‘budget will result in robbing Peter to pay Paul’
The Scottish Trades Union Congress (STUC) acknowledged the increase in public sector pay floor to £10.50 and insisted that pay rises must be fully funded by Scottish Government to avoid cash strapped councils having to make other cuts to pay the increased rate.
STUC General Secretary Roz Foyer said: “Workers across Scotland will be bitterly disappointed as they hear about the pay cuts announced today. Below inflation pay increases do nothing to help people deal with escalating costs this winter. Councils will have to rob Peter to pay Paul as services could be cut to meet the gaps in funding.
“There is a desperate need to back our public services. Huge gaps in funding in the NHS and social care have left some of the most vulnerable people in our communities without the treatment and services they urgently need. The Scottish Government have failed to take the opportunity before them to step up and back public sector workers.”
COSLA released its ‘Budget Reality’ document last night in response to the Scottish Budget.
COSLA’s Resources Spokesperson Councillor Gail Macgregor said that COSLA Leaders will meet today to discuss the implications for Local Government and respond more fully then.
In a brief statement Councillor Macgregor, said: “Our ‘Budget Reality’ document is important as it sets out the facts about the Local Government Settlement.
“It appears to be a disappointing budget for the communities that we represent, as it does not give Local Government what we need to survive and nor does it meet our campaign aspiration to help those communities to ‘Live Well Locally’,
“Once more, our core financial settlement has been hit.
“That said, we will take time to consider the finer details of today’s announcement and the full implications for both ourselves and our communities.
“As a membership organisation, our Council Leaders will come together virtually tomorrow to consider the implications, before we make a more formal response following that meeting.”
Responding to the Scottish Government’s budget, which was published today, Peter Kelly (Director, Poverty Alliance), said: “Today’s Scottish Government budget contains a number of welcome commitments.
“Doubling the Scottish Child Payment from April, as we and so many others across Scotland campaigned hard for, will help stem the rising tide of poverty across the country. Introducing free bus travel for young people under 22 is also a positive step toward a transport system that can tackle inequality.
“But with over one million people in Scotland living in the grip of poverty, it is clear that we cannot let up. In 2022 we must see these actions built upon, with further steps taken to build a Scottish social security system that unlocks people from poverty.
“We must also go further in redesigning our public services, like by extending free bus travel available to all under 25s and to everyone on low incomes.”
Scottish debt help charity welcomes the doubling of the Scottish Child Payment in the Scottish Budget
Child poverty is rising in every local authority in Scotland. Even before the pandemic, one in four children in Scotland were growing up in poverty and food bank use has increased by 63% over the last five years.
The pandemic has made things even more difficult for those already struggling as it has disproportionately impacted people living on low incomes.
CAP Scotland National Director, Emma Jackson, says, “We are delighted to hear about the Scottish Government’s commitment to double the Scottish Child Payment for families with children under the age of six.
“This is the single most impactful action that will take us four percentage points closer to reaching our interim child poverty targets and signals that ending child poverty will be a defining priority for Scotland. It is encouraging to see Scotland leading the way with this unique payment for families.
“This additional income will make a significant difference for the families we work with at Christians Against Poverty (CAP) Scotland. Families like Holly’s, who experienced problem debt after an overnight reduction in hours at work. Coupled with ill health and the challenges of being a single parent, debt began to deeply impact all aspects of Holly’s life.
“Through working with CAP Scotland, Holly was able to access the right debt solution for her and begin a debt free fresh start. The additional £40 per month will mean not having to worry as much about keeping her home warm for her and her son or buying him more food.
“Yet the very real challenges of making a low income stretch far enough to meet essential living costs remains. We welcome the news of free bus travel for those under the age of 22, the extension of free school meals to older age groups and the accelerated roll out of the Scottish Child Payment to include all children under the age of 16 by the end of next year. However, we would urge the Scottish Government to do all it can to bring the roll out of the Scottish Child Payment forward.
“With the rising cost of living and the end to the Universal Credit uplift, many families are facing a significant struggle this winter. We’re concerned that even more people will be pushed into poverty. We are keen to hold the Scottish Government to their commitment that “we can’t leave anyone behind”.
“The announcements in today’s budget leave a risk that key groups could experience further hardship. For too many households we work with at CAP, like single adult households, there is insufficient income to cover everyday essentials – rent, food, fuel, toiletries – and borrowing money is often a necessity to survive. No one should be forced into problem debt in order to survive.”
The Scottish budget 2022-23 includes £150 million for walking, wheeling and cycling, an increase of £19.6m.
Living Streets Scotland, part of the UK charity for everyday walking has welcomed the significant funding and the impact it will have to make cleaner and healthier forms of transport.
Stuart Hay, Director, Living Streets Scotland said: “Today marks a fundamental and positive change in how transport is funded with a much greater focus on people walking, wheeling and cycling.
“Walking accounts for 22% of all trips, so it’s great to see spending levels reflecting this reality, switching from a focus on new road schemes that have resulted in congestion and emissions.
“The £150 million investment will make it easier, safer and more attractive for more people to choose cleaner ways to travel. This is vital in the face of a climate emergency and a crisis in public health brought about by inactivity.
“This level of investment means new projects, such as national action to get more children walking to school are possible. It also makes plans to cut traffic on Scotland’s roads and streets by 20% more realistic.”
Responding to the Scottish Government’s Budget for 2022-23, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:“Scotland’s economy is recovering from the COVID-19 pandemic faster and stronger than many expected, and this budget offered the Scottish Government an opportunity to accelerate this return to growth.
“Whilst there was much to welcome in this budget the Scottish Government should have gone further to support Scotland’s businesses, the drivers of economic growth.
“Many economic deterrents as a result of the pandemic remain in place, impacting on footfall on our town and city centre high streets, driving down demand in our vital tourism and aviation sectors, and the looming threat of a return to greater level of restrictions is holding back investment. The Scottish Government should have provided assurances for businesses that targeted financial support will be made available to those ongoing affected sectors to deliver a clear pathway to recovery.”
On Non-Domestic Rates:
“Businesses will welcome the extension of rates reliefs afforded to properties in the retail, leisure, and hospitality sectors for an additional three months, however, this should have gone further to give businesses the time they need to recover from this incredibly challenging period.
“Scotland’s town and city centres have already lost thousands of businesses over the past twenty months and prolonged periods of home working have made the trading conditions for brick-and-mortar retailers tougher than ever, and many ratepayers will question if this extension goes far enough to support them.
“It was also disappointing that the Scottish Budget failed to confirm whether or not the long awaited NDR Revaluation due to take place in 2023 will go ahead as planned.”
Training, Skills and Supply Chain:
“Scotland’s businesses are still experiencing challenges through supply chain connectivity problems, rising cost prices, inflationary pressures, and recruitment difficulties.
“Additional funding for training interventions at all levels is welcome news and investment in Scotland’s workforce drive up business capacity and improve investment opportunities.
“Cost pressures and supply chain challenges require urgent action from government and whilst we await further details in the forthcoming National Economic Transformation Strategy, it’s important Scottish Government act now, collaborate with business and begin to resolve these issues as a priority for our economy.”
Energy and Just Transition:
“The energy sector remains a critical part of Scotland’s economy and the funding commitments in the budget to support a Just Transition are a step in the right direction.
“To meet Scotland’s Net Zero ambitions and secure the future of jobs in the energy sector and North and North-East though, this investment and funding needs to continue to be stepped up, at pace, in partnership with industry to enable businesses to pivot successfully.”
Debt counselling charity Christians Against Poverty (CAP Scotland) have launched their new #BreakFree campaign across Edinburgh, encouraging those with problem debt to engage with free debt help services across all local CAP Scotland centres.
This campaign follows a CAP Scotland report earlier this year, which highlighted that 45% of CAP’s clients did not know where to seek help, and half had waited over a year before seeking debt help.
The 2021 client report by CAP Scotland showed the average peak debt for a CAP client household in Scotland was £19,369 which is higher than the UK average of £17,917. Moreover, the report found it would take Scottish client households an average of 43 years to pay off their debts without debt help. That’s the longest in the UK.
CAP Scotland is a professionally recognised charity that works to help those on low incomes struggling with problem debt. The charity offers a free face-to-face debt help service, with advice and ongoing support. CAP Scotland also provides a range of group services that equip people with practical skills including Job Clubs, Life Skills and CAP Money Courses.
Mark Harris, CAP’s Debt Centre Manager for Edinburgh North said, “Our clients all have very different back stories but the thing they all have in common is that their debt problems are the consequence of other issues in their lives, whether that be physical or mental ill-health, family and relationship issues, or redundancy.
“Sometimes the client is already dealing with those issues but often they need us to provide additional help, to make referrals to other agencies or simply to be with them, willing to listen and to offer comfort and support without judgment. Building trust, confidence and hope in the future is such an important part of what we do and is far beyond the specifics of the pounds and pennies of their financial situation.”
David Strang, Job Club Manager at Mustard Seed Edinburgh and Debt Coach at the CAP Edinburgh North Debt Centre said, “I spent 33 years as a police officer in London and Scotland, often dealing with the most vulnerable members of society, who were either victims of crime or perpetrators.
“Many people I dealt with experienced multiple problems such as poor mental health, addictions, homelessness, unemployment and poverty. My work with Christians Against Poverty now enables me to take a personal approach to each individual we work with.
“Many people who come to our Job Club lack confidence, having been out of work for a long time, perhaps through ill-health or because of childcare. The CAP Job Club makes a real difference in supporting people on their journey back into work.
“We also support people through our Debt Services who are struggling with serious debt problems. They often feel a sense of hopelessness, failure and despair. Our CAP services help them to see that there is a positive way out of their situation, that there is a reason for hope and that they can make a fresh start. It is a real privilege to walk with people on their journey.”
Emma Jackson, Director of CAP Scotland said, “Our services provide practical, person centered support and are completely free and open to all. At CAP, we know, problem debt can devastate people’s lives, affecting physical and mental health. It can destroy relationships and cause so much unnecessary shame and embarrassment that robs people of dignity, causing such isolation.
“We know that many people are worried about how they are going to cope this winter with rising food and fuel costs. Our hope is this campaign will encourage those who need help to reach out to organisations like CAP and start their journey to becoming debt free.”
CAP Scotland has been providing debt help for over twenty years and continues to grow its network and reach across Scotland with 26 Debt Centres and many more additional skills courses.
The work of CAP Scotland can have a far-reaching, positive impact on people’s lives. Laura is a CAP Scotland client from Edinburgh, who said: “I didn’t have enough money to go to a supermarket and get a proper shop. I’d lost so much weight and been sleep deprived for weeks.
“I would definitely recommend CAP to anyone who is struggling with how to manage their debts. You can speak to someone and it really takes the pressure away. I’m sleeping a lot better now, knowing that Mairi [CAP Debt Centre Manager] is going to take over. I don’t have to be the one making the phone calls and being scared.”
To find your local CAP Debt Centre in Scotland please go to www.capscotland.org
