The Financial Conduct Authority (FCA) has reminded borrowers they can get help from their lenders if they are struggling to keep up with payments, as it found the number of people struggling to meet bills and credit repayments has risen by 3.1m since May 2022 (10.9m, compared to 7.8m in May 2022).
The number of adults who missed bills or loan payments in at least three of the last six months has also gone up by 1.4 million, from 4.2 million to 5.6 million over the same period.
The FCA has repeatedly reminded firms of the importance of supporting their customers and working with them to solve problems with payment, including by writing to industry bosses to make sure they are aware of the regulator’s expectations.
Where firms haven’t supported their customers properly, the FCA has told them to make changes. It reminded 3,500 lenders of how they should be supporting borrowers in financial difficulty and told 32 lenders to make changes to the way they treat customers. This work has led to £29 million in compensation being secured for over 80,000 customers.
As part of its Financial Lives survey, the FCA found that the cost of living is having an impact on people’s mental wellbeing. Around half of UK adults, or 28.4 million people, in January 2023 felt more anxious or stressed due to the rising cost of living than six months earlier.
Sheldon Mills, Executive Director of Consumers and Competition said: ‘Our research highlights the real impact the rising cost of living is having on people’s ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice.
‘If you’re concerned about your finances, you do not need to worry alone. We’ve told lenders that they should provide support tailored to your needs. And, if you find yourself in debt or want to know more about how to manage your finances, free expert advice is available.
‘We will continue to act quickly to make sure financial firms help their customers who are facing financial difficulty or are worried they might be soon.’
The support needed to deal with the rising cost of living goes beyond what is provided by the financial services sector. As a result, the FCA continues to work with other regulators and debt organisations to drive better coordination and help make sure customers are treated fairly and supported if they get into financial difficulty.
The FCA will also be introducing the Consumer Duty in the summer. The Duty will be the driving force behind its consumer protection work, as it will require firms to act to deliver good outcomes for consumers and make sure that they are properly supported while using a financial product or service.
Don’t miss out on the £301 Cost of Living Payment as a recipient of Pension Credit – submit your application for Pension Credit before FRIDAY – 19 May.
Did you know, if you get Pension Credit you could also get a help with your council tax, housing costs, broadband fees and energy bills?
An estimated 20,000 additional people will become eligible for additional help to buy healthy foods when income thresholds are removed for Best Start Foods payments.
The Scottish Government benefit provides help to pregnant women or their partners as well as families with children aged up to three years old, so they can buy healthy food, milk or baby formula.
It is currently paid to people who receive qualifying benefits, so long as their incomes are not above set thresholds. The Scottish Government will introduce regulations that remove those thresholds increasing eligibility for Best Start Foods to around an additional 20,000 people from February 2024.
Social Justice Secretary Shirley-Anne Somerville said: “Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions.
“Rising food prices disproportionately hurt those on the lowest incomes, so removing the threshold for qualifying benefits means around 20,000 people will now get vital help to buy healthy foods.
“Best Start Foods is one of our five family payments, including the Scottish Child Payment, which together could be worth more than £10,000 by the time a first child turns six and more than £20,000 by the time an eligible child is 16.
“As set out in our tackling child poverty plan, we will use all the resources available to provide immediate support to families, while seeking more powers to enable us to truly tackle poverty.”
Ahead of Mental Health Awareness Week (15 – 21 May), a leading vet charity is advocating keeping pets and their owners together through the cost of living crisis.
Nearly all pet owners (94%) say that owning a pet makes them happy, according to new figures from the upcoming 2023 PDSA Animal Wellbeing (PAW) Report – and their support has been vital, especially as many people have been forced to make drastic cutbacks to stay afloat.
While worrying figures have shown that as many as 770,000 owners are going without necessities in order to keep caring for their pets, almost half of owners (44%) have also said that their four-legged friend has been a lifeline during the cost of living crisis.
Nearly all (90%) pet owners felt having a pet improved their lives, a comfort which is especially important as many feel the impact of the cost of living crisis. This figure is higher especially among dog (91%) and cat owners (89%).
The findings also highlight the benefits of having a pet on overall health, with 87% stating owning a pet makes them mentally healthier. While over two thirds (67%) feel it makes them physically healthier – a figure that is even higher among dog owners (86%).
Meanwhile, at a time where many people are having to juggle energy bills and soaring living costs, which can prove isolating, furry friends are essential when it comes to providing companionship. For example, the figures show that over four in five pet owners (85%) say that owning a pet makes them feel less lonely.
PDSA Veterinary Surgeon, Lynne James, said: “Pets are family, and we know that pet owners will go to great lengths to ensure they can continue to care for their beloved pets. It vitally important that with everything pets do for us, we make sure that they have everything they need to live healthy and happy lives.
“Our latest figures show pets are invaluable, especially when their owners are going through hardship. As the cost of living crisis worsens, the work of charities like ours becomes vital, not only to provide essential veterinary care, but also to keep pets and their owners together in their time of need.
“In 2022, we provided veterinary care for over 390,000 pets, whose owners would otherwise have struggled to afford the cost and may even have had to resort to other options such as rehoming – the mental health consequences of which are unimaginable.
“As Mental Health Awareness Week approaches, I’d like to encourage pet owners who are struggling due to rising costs, and who are concerned about being able to afford the cost of veterinary treatment to reach out to us. Our website includes a free eligibility checker to find out whether they’re able to access our services, which is a great place to start.
“We also have lots of free advice on how to reduce the cost of caring for pets, while ensuring they remain healthy and happy – something we hope will take a mental load off for many pet owners through the cost of living crisis.”
PDSA relies on donations to deliver life-saving treatment to hundreds of thousands of pets across its 48 Pet Hospitals in the UK.
To help keep pets and people together, the charity is urgently calling on the public’s support to prevent vulnerable people having to make a truly heart-breaking decision.
Homebuyers who’ve always dreamt of living by the sea can reserve now and move in in time for summer, with a range of new properties available near the coast in Edinburgh and the Lothians.
Barratt Developments – which includes Barratt Homes and David Wilson Homes – is encouraging first time buyers and downsizers to take advantage of the homebuilder’s cost-saving initiatives and find their new ideal home, located a stone’s throw away from a number of coastal walks and beaches.
An array of two and three-bed properties at Cammo Meadows in Edinburgh, The Strand in Portobello and St Clements Brae in Wallyford, East Lothian are now ready to be moved into ahead of the warm weather, with each development less than a ten-minute drive from golden sands.
Ideally located close to the City Bypass, the properties are perfect for first time buyers looking for work-life balance or those downsizing to quieter surroundings. According to Moneybox, the Edinburgh area is also the fifth most popular hotspot for first-time buyers.
Interior showhome photography of The Ashworth at David Wilson Homes Cammo Meadows development in Edinburgh
To make the move seamless, Barratt Developments, which includes Barratt Homes and David Wilson Homes, is currently offering buyers £1,000 for every £20,000 spent, plus flooring included. This cash from the initiative can be used towards a deposit, mortgage repayments or moving costs. A number of selected homes also include upgraded options.
In addition to a high-quality finish, buyers can expect their home to be energy efficient. According to Barratt Developments’ Tackling the Cost of Living Crisis – 2023 Report, more than 55% of Scots are considering buying a new build home to save on energy bills.
The recent ‘Watt a Save’ report from the Home Buyers’ Federation (HBF) showed that around 84% of new builds have an energy efficiency rating of A or B, compared to just 4% of existing housing in the UK. Thanks to advanced systems and technologies, all Barratt homes are now up to 63% more energy efficient, which could save homeowners up to £3,100 per year on bills.
Anne Ross, sales director at Barratt Homes and David Wilson Homes East Scotland, said:“Location is key when we build our homes, so we’re proud to be able to offer a selection of ‘ready-to-move-into’ properties in some of the most popular areas in Edinburgh and the Lothians.
“These homes are perfect for first time buyers or downsizers looking to mix the hubbub of the capital with suburban living.
“If people reserve now, they can be moved in in time for summer and the process is made even easier with our current incentives – which include mortgage repayments and flooring, in addition to improved energy efficiency. Homebuyers are urged to move quickly, as we expect these homes to be snapped up fast.”
Barratt Homes and David Wilson Homes in the North and West of Scotland also have limited availability on homes ready to move into before summer.
Tax, targeted support and tough budget choices will all need to be considered as part of bold measures to tackle poverty, First Minister Humza Yousaf said yesterday after meeting poverty campaigners.
The anti-poverty summit, convened by the First Minister, saw political leaders from across the Scottish Parliament meet with people who have direct experience of poverty, campaigners, and third sector organisations.
Speaking after the event, which was attended by around 90 delegates, the First Minister said: “I called the summit to listen to the views of a wide range of partners, particularly those at the sharp end of the cost of living crisis and with direct experience of poverty, about what they believe needs to be done.
“Everything I heard confirmed that poverty and the cost of living crisis is the biggest challenge facing this country – one that has been exacerbated by some of the UK Government’s actions and inactions.
“We have already acted to tackle the pressure on those most in need – for example, our game-changing £25 per week per child Scottish Child Payment, Carer’s Allowance Supplement, and Winter Heating Payment.
“But we must do more. We must be bold in considering future tax decisions. Tough choices will need to be made about existing budgets, and we need to consider whether targeting help is the way forward when money is so tight.
“It’s not enough to wish poverty away. We have to be hard-headed and realistic about what can be done – and then we have to focus on making it happen. That means the debate must now be about tax, targeting and tough choices. We are listening and will not shy away from the decisions needed to reduce poverty.”
COSLA President Councillor Shona Morrison said: “The initiative from the Scottish Government is a good one and one which Local Government can get fully behind. Tackling poverty is a core objective for Local Government working in partnership with the Scottish Government, the third sector and public and private sector partners.
“The cost- of-living crisis we are living through at present is being tackled head-on by Councils the length and breadth of Scotland and partnership working is vital to achieving positive outcomes for individuals, families and our communities across Scotland.”
Commenting on reports around the expansion of universal free school meals in Scotland, Poverty Alliance director Peter Kelly said: “The First Minister has to recognise the injustice that leaves so many children in Scotland hungry and without food they need.
“With figures from the Trussell Trust showing record numbers of families accessing food banks, this is not the time to roll back on commitments relating to free school meals.
“We know that many low-income families just miss out on qualifying for means-tested free school meals, and many others don’t claim because of shame or stigma.
“The best way to tackle this problem is through universal free school meals that benefit all of our children and young people.”
Peter Kelly was speaking just after attending yesterday’s anti-poverty summit, chaired by the First Minister.
He said: “The First Minister’s poverty summit was a timely opportunity to refocus on tackling the injustice of poverty in Scotland. Across all those who took part, there was a clear sense of urgency on the need to deliver real change.
“There was no shortage of ideas for action. We can expand funded childcare, use public contracts as a lever to improve pay and conditions in key sectors, and remove barriers to work for those people most affected by poverty – women, disabled people, people from Black and ethnic minority communities.
“Now is the time for the Scottish Government to turn those ideas into concrete action. We look forward to a follow up summit in the coming year to check where progress has been made.”
Positive anti-poverty summit soured by possible roll-back on Free School Meals
THE sCOTTISH Trades Union Congress (STUC) and the STUC Women’s Committee have warned of massive resistance to any reversal on the SNP free school meals pledge and called for an acceleration, not a roll-back of the programme.
STUC General Secretary Roz Foyer said: “We were enthusiastic participants in the summit today. Our key message is that better and fairer wages tied to redistributive taxation must lie at the heart of strategies to tackling poverty and inequality. Current levels of in-work poverty are totally unacceptable and place further pressure on our under-funded benefits system. We need to see real action coming out of this summit.
“Suggestions this morning that the Scottish Government might consider breaking pledges to extend free school meals is not what we are looking to hear. Investing in the health of all of our young people and removing stigma is a key priority and any roll-back will be fiercely resisted.”
Andrea Bradley, Chair of the STUC Women’s Committee and General Secretary of the Educational Institute of Scotland said: “The STUC Women’s Committee would be deeply concerned if the First Minster’s comments around a potential reversal of the Scottish Government’s progressive policy on universal free school meals expansion as reported today, were to be put into action.
“1 in 4 children in Scotland were living in poverty before the onset of the cost-of-living crisis, which the previous First Minister declared a humanitarian emergency. Now, food inflation of 20%, together with exorbitant energy costs, and stagnant wages is making life even harder and more miserable for hundreds of thousands of parents in Scotland and their children – many already missing out on a decent meal at school because of the stigma or the bureaucracy of means-testing.
“Now is the time to accelerate the roll-out of universal free school meals – not to roll back on what were essential promises.”
99% of households initially eligible through DWP will have been directly paid £301 by the government by end of today (3 May 2023)
The payments are the first of 3 new Cost of Living Payments worth up to £900 in 2023/24 for those eligible – though some people will receive up to £1,350.
Those remaining will continue to be paid between now and 17 May by DWP, with no need to contact anyone.
More than 7 million households across the UK will have been paid a £301 Cost of Living Payment by the end of today (3 May 2023).
This means the vast majority of eligible households have received the support in just 8 days of the rollout starting, with the small number of payments outstanding to be made by 17 May.
The payment is the first of 3 Cost of Living Payments being made this year and the next, illustrating the government’s commitment to supporting vulnerable families with financial pressures. This comes alongside work to deliver on the government’s 5 priorities, including halving inflation and growing the economy, which will ultimately help put more money in people’s bank accounts at the end of the month.
Mel Stride, Secretary of State for Work and Pensions, said: “Paying more than 7 million households £301 in a little over a week underlines our commitment to ensure those on the lowest income are protected from the worst of rising prices and give them peace of mind.
“With further payments due to be made later this year and in 2024, we will continue to provide support to those who need it most while we tackle inflation and grow the economy.”
Jeremy Hunt, Chancellor of the Exchequer, added: “We know the impact that rising prices are having on families, which is why we are providing significant support to millions through these direct cash payments. This is alongside other support, including holding down energy bills, uplifting benefits and the State Pension by 10%, and increasing the National Living Wage by a record amount.
“The single best way to ease cost of living pressures is to bear down on inflation. We are on track to halve it this year, laying the foundation for the long-term growth needed to improve everyone’s living standards.”
The Cost of Living Payments, spread across 2023/24, are worth up to £900 for those on means-tested benefits. The next payment for those on means-tested benefits is due in the autumn, with the third instalment due next spring.
These are accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment to top up Winter Fuel Payments for pensioners at the end of 2023 – meaning some will receive up to £1,350.
This makes up part of the government’s significant cost of living support – now worth an average of £3,300 per household over this year and last.
People will be eligible for the £301 Cost of Living Payment if they have been entitled to a payment for one of 7 benefits between 26 January and 25 February 2023. The eligible benefits are:
Universal Credit
Pension Credit
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Income Support
Working Tax Credit
Child Tax Credit
The DWP encourages anyone who thinks they may be eligible for a qualifying benefit to use a benefits calculator to check their entitlement. In particular, low-income pensioners should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by 19 May 2023.
The small number of payments outstanding will continue to be made between now and 17 May, and anyone eligible still waiting for a payment does not need to contact the Department for Work and Pensions (DWP) before then.
After this date, if someone thinks they may be missing a payment they are entitled to, a form can be filled out on the GOV.UK website to make a claim.
One million eligible families, receiving tax credits only, will get their £301 Cost of Living Payment from HM Revenue and Customs (HMRC) between Tuesday 2 and Tuesday 9 May with the banking reference ‘HMRC COLS’.
This payment comes on top of extensive support given to low-income households in 2022, including up to £1,100 in Cost of Living Payments. The Household Support Fund, worth over £2 billion across its lifetime, continues to offer support to people across England, and those in need should contact their local council to see what support is available in their area.
Tackling poverty and inequality is the biggest challenge facing Scotland, First Minister Humza Yousaf will say at today’s anti-poverty summit.
Led by the First Minister, the summit offers a vital opportunity for the Scottish Government to listen to, and work with key partners, campaigners, cross-party representatives and those with direct experience of poverty, to help inform Scotland’s drive to tackle poverty and inequality.
Opening the anti-poverty summit, the First Minister is expected to say: “The Scottish Government recognises the cost of living crisis is putting a huge strain on households and no-one should have to make the choice between heating, eating or turning the lights on.
“Tackling poverty and inequality is the single biggest challenge facing Scotland and requires continued, urgent and sustained action.
“Today’s anti-poverty summit is an opportunity to get round the table with campaigners, businesses, the third sector, local government, representatives from Holyrood’s main political parties and, crucially, those with direct experience of poverty, to hear their views and insights.
“This is the collaborative approach that people across Scotland want to see their First Minister and political leaders take – to secure real action on the biggest issues facing our country.
“We have a strong foundation to build on, with almost £3 billion allocated this year to support policies which tackle poverty and protect people as far as possible during the cost of living crisis, and we have announced details this week of how tens of thousands of households will be supported as a result of the Fuel Insecurity Fund being tripled.
“But, as we discuss what more can be done, nothing will be off the table and I look forward to hearing all contributions at the summit, which I hope will drive new momentum in the fight against poverty in Scotland.”
Delivering even more tailored support to tens of thousands of households is at the heart of a major expansion of this year’s Fuel Insecurity Fund.
The First Minister announced in March that the Fund will be tripled to £30 million this year. Details have now been announced of how the additional funding will be used to help those who need it most through new and existing services.
This includes £5 million for one-to-one mentoring for households to be provided by a new funding partner, The Wise Group, as part of a longer-term approach to tackling poverty and its causes.
Households will also be helped through additional funding being directed to existing delivery partners, including:
£9 million to enable Advice Direct Scotland to administer Home Heating Support Fund grants to those struggling with the rapid increase in gas, electricity and oil prices
£8.5 million for the Fuel Bank Foundation to rapidly support more than 85,000 households, including those with prepayment meters and at risk of imminent disconnection
£7.25 million to enable the Scottish Federation of Housing Associations to provide more than 55,000 households across Scotland with advice, support with bills and energy- saving items
Details of the additional support were announced ahead of an anti-poverty summit being convened by the First Minister tomorrow (Wednesday). Those with direct experience of poverty, as well as experts from the public, private and third sectors, will take part.
Energy Minister Gillian Martin visited Advice Direct Scotland’s Glasgow headquarters to meet advisers and learn more about how they are supporting people who are struggling to heat their homes.
She said: “The Fuel Insecurity Fund has been and continues to be a direct lifeline for many thousands of households, which is why the First Minister acted swiftly and decisively to triple the Fund to £30 million this year. We want to support even more people facing unprecedented rises in the cost of energy.
“Whilst the key energy policy levers remain with the UK Government, one of our interdependent missions as a government is to tackle poverty and protect people from the impact of the current cost of living crisis, which is why we have taken this action.
“The UK Government has continually failed to take the necessary steps to support people now and make the necessary changes – which only it can take – to ensure households and businesses never experience an energy crisis like this again.
“This includes reversing its decision to end the Energy Bills Support Scheme and making essential reforms to the energy market so the link between the price of electricity and the cost of gas is permanently broken.”
Conor Forbes, Director of Business Development and Policy at Advice Direct Scotland, said: “We are delighted to be working with the Scottish Government again to support Scottish citizens struggling with the cost-of-living and energy bills.
“With the UK Government’s Energy Bills Support Scheme coming to an end, many are finding themselves having to cut back on energy to afford other things. It’s important that anyone who is struggling reaches out for support.
“Advice Direct Scotland runs a number of services that can offer assistance in various areas related to the cost-of-living, including energy, debt, and support with benefits applications.”
Sean Duffy, Chief Executive Officer at The Wise Group, said: “It’s great to see the Scottish Government taking action to help households struggling with fuel insecurity and poverty.
“We’re proud to be a new funding partner for the Fuel Insecurity Fund, and excited about the opportunity to provide tailored, one-to-one Relational Mentoring to households in need.
“We know that everyone’s situation is different, so we’re committed to taking a personalised approach to support each household in a way that supports sustainable change. We’ve had great success stories, and we’re looking forward to making a real difference to people’s lives through this initiative.”
May Day is a unique occasion in our calendar. It’s when we celebrate the bonds that unite workers and trade unionists across the world. When we reflect on our shared values of equality, justice and solidarity. And when we remember the huge advances won by the collective struggles of working people (writes TUC General Secretary PAUL NOWAK).
And this year, May Day has a special resonance. The cost-of-living crisis shows few signs of easing. Food prices are now rising at almost 20 per cent, hitting the poorest hardest. And across the economy, in both private and public sectors, hundreds of thousands of workers are striking for fair pay. I’ve been proud to visit scores of picket lines, meeting inspirational reps and workers, many on strike for the first time. Unions don’t accept we have to become poorer.
In the public sector, the government is refusing to deliver decent pay rises for the workers it lauded as heroes during the pandemic. Ministers had to be dragged kicking and screaming to the negotiating table following industrial action by health and education unions. But they are still failing to negotiate in the civil service – and the TUC will resist any attempts to play one group of workers against another.
Meanwhile, in the private sector, unions have been winning some impressive deals for their members. And a special mention to workers at Amazon in Coventry, who have been taking historic strike action for fair pay and union recognition.
But as workers fight for a fair deal, the Conservative government is attacking our right to strike. Their Anti Strikes Bill is undemocratic, unworkable and probably unlawful. It makes the UK an international outlier by imposing yet more draconian restrictions and penalties on unions.
Small wonder the legislation has been condemned by employment law experts and, earlier this week, by over 100 politicians worldwide. And on Wednesday, Labour, Lib Dem and crossbench peers in the House of Lords defeated the government four times on the bill.
That’s why the TUC has called an emergency “reject and repeal” protest outside Parliament to coincide with the final Commons votes on the bill. We can’t be sure about exact dates just yet, but it’s likely to be sometime in mid May.
Full details will be posted on our website as soon as possible. This is a big opportunity for us to put our concerns firmly in the political, media and public spotlight.
As working families struggle to stay afloat, those at the top are raking it in. Chief executives continue to trouser massive pay packages. Shareholder dividends have gone up three times faster than wages. And bankers in the City of London have just enjoyed the biggest bonus round since the crash. Britain is increasingly unequal: as hospitals set up food banks to feed their own staff, Porsche dealers report record sales.
Instead, we need an economy that rewards work not wealth. The TUC is demanding fair taxes, including a proper windfall tax on obscene energy profits. We want a £15 minimum wage, better pensions and a boost to Universal Credit. And we want stronger collective bargaining rights for unions, so we can win fair pay for all and ensure the gains of tech change and AI are shared fairly.
We’re also campaigning for political change and the election of a new government on a worker- and union-friendly manifesto. But whatever happens, we must rebuild our collective strength, advancing our membership and organisation right across the economy.
My overwhelming priority remains to build a stronger, more diverse, more inclusive movement. And whether it’s fighting racism, rooting out sexual harassment or resisting the government’s spiteful Illegal Migration Bill, there’s plenty we can do. This May Day, let’s resolve to fight for all working people, in all our wonderful diversity. Ultimately, that’s the best way to win the change we need.
