It’s a subject we’d all rather avoid, but we need to talk about funerals – and how much they can cost …
A new report on funeral poverty has found funeral director and local authority costs should be more consistent and bereavement support more widely available. Continue reading Report calls for action to address funeral costs
New report shows growing demand for emergency food aid
More than 160 groups and organisations are now providing emergency food aid in Scotland. The figure is in a new report from the Poverty Alliance which states changes to the social security system and the introduction of sanctions, as well as low pay and insecure work are some of the main factors behind the growing need for emergency food.
The Cabinet Secretary for Social Justice Alex Neil launched the report at a food bank in his Airdrie constituency yesterday.
The Scottish Government has now provided the Poverty Alliance with £28,941 to carry out further work with emergency food providers. This will enable the Alliance to work with those providers to take forward research findings and to focus more strongly on the causes of food poverty and work towards ensuring people get the help needed to move them away from reliance on food aid provision.
Mr Neil said: “The Poverty Alliance report perfectly demonstrates the impact of UK welfare changes. It is unacceptable that so many have had to resort to foodbanks. Emergency food aid is not a sustainable response to the issue of food poverty and its underlying drivers and it cannot become an established feature of the welfare system in Scotland.”
“We have seen previously in figures from the The Trussell Trust, that there has been a shocking increase in food bank usage. This speaks volumes about the real poverty in our society when people can’t feed their families without help and support from food aid organisations.”
The Poverty Alliance report follows figures from The Trussell Trust which shows a rapid and dramatic rise in the number of people accessing emergency food aid in Scotland.
The Trussell Trust has reported a 12 fold increase in usage of emergency food aid in just three years – in 2011/12 5726 people in Scotland accessed food aid, while in 2013/14 that figure was 71,428.
The Poverty Alliance report concludes that more effort should be concentrated on how emergency food aid providers can better connect people with mainstream support services. Providers working in close partnership with other services have been shown to offer better support to those in need, connecting them to the advice and support required to address underlying issues which have led them to access emergency food aid in the first place.
Director of The Poverty Alliance Peter Kelly said: “We need to build on the good work that food aid providers are already doing. Volunteers are providing help to people experiencing real difficulties in often complex circumstances. There is a need to develop partnership working between emergency food aid providers to share ideas, experiences and good practice.
“In the longer term we need to ensure that we are developing policy solutions that address the root causes of food poverty. The support from the Scottish Government will help the Poverty Alliance ensure that those who are on the frontline tackling food poverty are able to contribute to finding these solutions.”
The Trussell Trust Scotland Network Manager Ewan Gurr added: “It has been a pleasure to work alongside and support the research carried out by our colleagues at the Poverty Alliance and we appreciate the consistency of the Scottish Government as they explore creative ways to tackle food poverty in Scotland.
“The voluntary sector, largely, has an openness to exploring fresh ways in which we can enhance the level of support people are offered. We welcome the report and believe it is important for us, as well as other food providers, to digest the findings. It has always been my ultimate desire that our foodbanks are places where dignity is restored, hope is revived and the support is comprehensive and robust.”
To help food aid providers develop a better understanding of the range of support available for users of emergency food aid and identify additional support, the Poverty Alliance has developed a web based resource to assist those delivering emergency food aid better link with mainstream services such as Citizen’s Advice Scotland as well as with other information and links to key support services at www.foodaidscotland.org
Local MP praises work of Citizen Advice service
Mark Lazarowicz MP has pledged his support for Citizen’s Advice’s new campaign at a reception held to celebrate the charity’s 75th birthday. The Advice for the Future campaign aims to highlight the importance of free, impartial advice and get 100,000 people pledging their support.
Citizens Advice has launched the campaign as rising household bills, changes to the welfare system and a troubled jobs market mean that for many life is getting increasingly complicated. This means it’s even more important that people can access free, relevant and impartial advice to help make complex decisions.
Citizens Advice Scotland, the Scottish counterpart to Citizens Advice, opened its first bureau in September 1939 and so will also be celebrating its 75th anniversary later this year.
The North and Leith MP said: “I know from my work as a constituency MP just how valuable the service provided by Citizens Advice is to constituents: free, independent, impartial and trusted.
“The major changes to the benefit system introduced by this Government, sharply rising energy bills and the difficulty that many households have in just keeping their heads above water have left many more people turning to Citizens Advice for help.
“It has also used its first hand experience in dealing with the practical problems people face to contribute positively to debate on public policy which is why I and other Opposition MPs fought so hard against the restrictions that the Lobbying Act would have placed on charities.
“Largely run by volunteers though publicly funded, it supports the vulnerable and indeed anyone who needs advice: our society would struggle to cope without it.”
Citizens Advice celebrates its 75th anniversary this year:
• In 2013/14 the charity helped 2 million people to solve 5.5 million problems
• In 2012/13, 22,000 volunteers donated nearly 7 million hours to the service
• This amounts to a contribution of £109 million worth of volunteering hours.
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)
The Westminster government is to introduce legislation to cap the cost of payday loans. In a move that’s likely to be welcomed by campaigners, the Treasury says there is “growing evidence” in support of the move.
The cap will be included in the Banking Reform Bill, which is currently going through Parliament, and the level of the cap will be decided by the new regulator the Financial Conduct Authority (FCA).
Chancellor George Osborne told the BBC there will be controls on charges – things like arrangement and penalty fees – as well as on interest rates. “It will not just be an interest rate cap, you’ve got to cap the overall cost of credit,” he said.
Although the level of the cap is yet to be determined, the announcement will be welcomed by opposition and campaign groups who have been urging the government to take action against some pay-day lenders’ practices: eye-watering interest rates and hidden charges which hit the poorest hardest and drive desperate people deeper into debt.
Just last week, Citizens Advice Scotland claimed that many payday lenders in Scotland are breaking the promises they made last year to clean up their act. According to CAS research, lenders continued to break ‘most of the pledges in their own code.’
The main points were:
CAS Chief Executive Margaret Lynch said: “When the payday lenders published this voluntary code last year we made clear we would be watching them like a hawk to make sure they kept to their word. Because there’s no point making promises if you don’t live up to them.
“Our survey results – together with the experience of other clients we see every day in the CAB – show very clearly that this Code of Conduct Is being ignored repeatedly.
“Across Scotland, CAB advisers are currently seeing over 100 cases every week of people who are in crisis debt to a payday lender. That’s a third higher than this time last year. Our evidence is that many lenders are operating in ways that result in people getting into debts they can’t handle.
“So the Payday Lenders have had their chance to clean up the industry, and they have failed. It’s time now for the regulators to step in and do it properly.”
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:
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:
Advice tips if you are in financial difficulty and considering a payday loan:
It could become the most hated piece of legislation to be inflicted on British people since the infamous Poll Tax. And it’s now only weeks away …
In April, a new measure is to be introduced that will apply to all tenants of working age – welfare reforms will cut the amount of benefit that people can get if they are deemed to have a spare bedroom in their council or housing association home.
Under the legislation, size criteria will restrict housing benefit to allow for one bedroom for each person or couple living as part of the household. Children under sixteen years old will be expected to share with others of the same gender, while children under ten will be expected to share regardless of gender.
Under the new legislation – labelled the bedroom tax – all claimants who are then deemed to have at least one spare bedroom will be affected and face an ‘under occupation’ penalty: a cut to their housing benefit.
The cut will be a fixed percentage of the Housing Benefit eligible rent, which the Westminster government has stated will be set at 14% for one extra bedroom and 25% for two or more extra bedrooms.
Those affected – around 660,000 working-age social housing tenants (over 30% of existing Housing Benefit claimants in the social sector) in the UK – will lose an average of £14 per week, with Housing Association tenants expected to lose around £16 per week.
The architect of the scheme is investment banker and Welfare Reform Minister Baron Freud of Eastry – who incidentally lives in an eight-bedroom Kent mansion when he is not staying in his four-bedroom townhouse in London’s Highgate. The noble Lord believes that ‘spare council house bedrooms are a luxury the country can no longer afford: “It’s not fair or affordable for people to continue to live in homes that are too large for their needs when, in England alone, there are around five million people on the social housing waiting list and over a quarter of a million tenants are living in overcrowded conditions. It’s only right that we bring fairness back to the system and make better use of the social housing stock.”
He went on: “Nearly a third of working-age social housing tenants on housing benefit are living in accommodation which is too big for their needs, in spite of the fact of severe overcrowding. We are stopping the practice of the state paying for rooms beyond claimant needs, and that should go in some way to help tackle the social housing shortage that has been blighting too many lives.”
Lord Freud and his ministerial chums hope that more households will chose to ‘downsize’ to smaller, more affordable properties – and in the process slash £500 million from the Housing Benefit bill. So the government reduces the national debt and tenants get suitably-sized homes: a win, win situation, then – everybody’s happy?
Sadly not. There’s a desperate shortage of suitable, smaller accommodation, as Shelter Scotland Director Graeme Brown explained: “The UK Government is simply failing to listen to the voice of reason being put forward by housing professionals, social landlords, MSPs and individuals. Penalizing low-income people for having an extra room assumes that there is a ready supply of smaller properties for them to move to. This is simply not the case. So the only consequence will be people stuck in homes with mounting rent arrears and a further descent into debt. Even at this late stage, we urge the UK Government to modify its proposals.”
According to the latest Scottish government figures, there are 586,000 households in the social rented sector in Scotland, and 105,000 of these – roughly one in five – will be affected by the Bedroom Tax, each losing an average of around £50 per month.
Advice organisations have already seen a significant increase in demand for their services, and the imminent welfare reforms will inevitably lead to even more desperate cries for help.
Citizens Advice Scotland (CAS) Chief Executive Margaret Lynch gave evidence about the impact of welfare changes on advice services at the Scottish Parliament earlier this month.
She said: “We expect demand for benefit advice, to increase even further along with an increased need for other areas of advice such as debt, housing, and budgeting due to changes in benefits. This increase in casework, as well as the increasing complexity and time-consuming nature or many issues, is of course having a knock-on effect on the ability of our service to help our clients.
“We are already at breaking point so desperately need to be adequately resourced to enable us to help those who need it most as we aim to mitigate the impact of welfare reform as much as possible. The recent benefits uprating bill debate highlighted the statistics showing how the poorest are paying the price for cuts. The evidence we are publishing today is not just statistics but is based on the real lives of real people. It is not just about the numbers of people affected, but the severity of the individual cases. We have seen a big rise in the number of people in crisis situations, either because of the direct impact of a benefit cut or because they have fallen through the gaps in the safety net that is meant to protect them.
“The evidence we are publishing shows who is really being hit hardest by current policies and it includes thousands of people who are genuinely sick, disabled, and vulnerable and deserve support. The impact of current policies don’t just hit the individual claimant but can also have a huge effect on children and others being cared for. Pushing people further into poverty and financial difficulties will lead to an increase in other problems such as homelessness, health inequalities, and family breakdown, as well as lead to rising debt and an increase for food hand-outs. Tackling these issues in future years will only add to the overall public spending bill, not reduce it. The UK government must heed this evidence and question whether they really want to continue on a track of devastating reforms which can only damage more lives.”
Shelter Scotland has issued advice to tenants likely to be hit by the imminent benefit cuts, and urge them to ACT NOW:
If you’re going to be affected by a deduction to your housing benefit then it’s very important that you prepare for the change before April 2013.
There are several things you can do:
If you can’t pay all your rent after the reduction you may have to think about finding somewhere else to live or you will risk falling behind with your rent and possibly being evicted. Speak to an adviser in your area as soon as possible if you’re worried that this may happen to you.
For Local advice:
Granton Information Centre 134-138 West Granton Road. Telephone 552 0458 Email info@gic.org.uk
Pilton CAB, Drylaw Shopping Centre: Telephone 202 1153 Email pilton@caed.org.uk
