WORRIED about your energy bills?
Find out about help you can get to heat your home more efficiently and reduce your heating bills at: http://homeenergyscotland.org
You can find local support and advice at:
http://edinburgh.gov.uk/costofliving
Advice on welfare rights, housing, rent arrears, debt and money.
Call 0131 551 2459 or 0131 552 0458
Email info@gic.org.uk
· Overall, nearly a third of adults in Scotland have less than £100 put away.
· Almost half of people who use credit are anxious about how much they owe.
· Over a third are anxious about the number of credit products they have.
· Free help is available, but six in seven people still struggle to talk about money.
Almost a million people across Scotland have no savings and another 450,000 have less than £100, according to new research from the Money and Pensions Service (MaPS).
The survey of 301 adults, carried out for Talk Money Week (November 7-11), shows that one in five (20%) have nothing put away and another one in ten (10%) have £100 or less.
This leaves almost a third of adults living without a financial safety net to cope with the rising cost of living or unexpected bills, meaning some may have to use credit.
MaPS says although credit is an important tool when used and managed well, it’s crucial that people understand what they can afford and have a plan to pay it off.
However, the figures also reveal that many people are already finding this difficult. Among the 82% of Scotland residents who use credit, two in five (43%) are now anxious about how much they owe. Two in five (40%) are worried about the number of different products they have.
As cost of living pressures start to hit home, MaPS says it’s more important than ever to talk about money before problems set in. However, the survey also reveals that 85% of people still avoid discussing their finances.
Asked why, the most common responses were ‘not wanting to be judged’ (24%), ‘shame or embarrassment’ (20%) and ‘fear of burdening others’ (17%).
During Talk Money Week, MaPS is encouraging everyone to open up about money, plan for their financial future and take free debt advice as soon as they need it.
The organisation says its MoneyHelper service can be people’s first port of call, offering free guidance on topics like everyday money, savings and where to find free debt advice.
It also provides a range of information on dealing with money issues, including step-by-step guides on how to talk to your creditors or discuss money with family and friends.
Allison Barnes, Scotland Manager at the Money and Pensions Service, said: “Over a million people across Scotland find it a challenge to save and this leaves them vulnerable when sudden expenditure items arise. When you add in the anxiety that they feel with their credit commitments, the weight of that worry can quickly become overwhelming.
“This Talk Money Week, we want everyone to start the conversation with family or friends and share the burden of any money worries. By dealing with the problem head on, people can discover just how helpful free debt advice can be and see the importance of talking to their creditors early. They can also begin to find a way forward, no matter how difficult their situation might feel.
“Free help and guidance on how to do all of this is available via our MoneyHelper service and I’d urge everyone who needs it to get in touch today.”
About Talk Money Week
The week is an opportunity for everyone to get involved with events and activities across the UK which help people have more open conversations about their money – from pocket money to pensions – and continue these conversations year-round.
This year’s Talk Money Week will focus on the theme of ‘credit’ – to help demystify some of the jargon, build people’s understanding of credit products, and what their options are, including other forms of support that might be suitable. However, we encourage people to use the week as an opportunity to talk about any aspect of money.
More information is available at https://maps.org.uk/talk-money-week/.
New research from insolvency and restructuring trade body R3 reveals Scottish firms had almost 1.7 million overdue invoices on their books in the last quarter.
R3’s analysis of data provided by Creditsafe shows 1,696,445 invoices were overdue in Scotland in Q3 – an increase of 7.1% from Q2’s total of 1,583,353.
Scotland and the West Midlands saw the biggest quarter-on-quarter rise in overdue invoices across the UK, followed by Northern Ireland (6.9% increase), the East Midlands (5.4%) and East Anglia (5.2%).
And Scottish businesses’ debt burden has been increasing steadily since the beginning of the year, rising from 552,897 unpaid bills in July, to 564,375 in August and 579,173 in September.
Almost 101,500 Scottish businesses reported that they had late payments on their books in Q3 2022 – a figure which peaked at 33,936 firms in September.
Richard Bathgate, Chair of insolvency and restructuring trade body R3 in Scotland, says: “This research highlights late payment is a growing issue in Scotland, and would suggest that businesses are facing ongoing cash-flow challenges, whether that’s supplier or client side …
“For small businesses that rely on regular income, even if just one client fails to pay or there is a delay in payment, that can have a serious effect – and in some cases, may mean they become financially distressed or insolvent.”
Richard, who is Restructuring Partner at Johnston Carmichael in Aberdeen continues: “I would urge the directors of any businesses who are worried about the impact of late payments or are worried about their ability to pay their invoices to seek professional advice.
“There are many steps that can be taken to support businesses, but they can only be taken if you move quickly and act early before the issue spirals.”
We are currently looking for a Welfare Rights Adviser to join our organisation.
This role is ideal for someone who is passionate about helping people and understands the importance of individuals having access to free and impartial advice, advocacy and representation on matters relating to benefits, welfare rights and debt issues.
Although experience in a similar role is preferred, full training will be provided and we are looking to hear from anyone who has useful transferable skills and an interest to work in this field (including graduates).
Apply at https://goodmoves.com/…/a4s3z000…/Welfare-Rights-Adviser
Royal Bank of Scotland is today announcing the launch of a report in partnership with Citizens Advice, focusing on support for vulnerable customers. There have been over 2,100 referrals from NatWest and Royal Bank to Citizens Advice since the programme started in October 2020.
Citizen Advice advisers based in Edinburgh have supported teams from across Royal Bank by providing a referral service for customers who contact the bank and express difficulty with debt, benefits, relationships and family.
The advisers assist in instances where Royal Bank believes that Citizens Advice could offer support that addresses a root cause of financial vulnerability.
The project has successfully helped customers across Scotland with complex financial issues and continues until September 2022, by which time NatWest and Royal Bank expect to have helped over 4,000 people with complex financial advice needs. This service is available across NatWest, Royal Bank and Ulster Bank.
The latest report details the impact of the pilot one year on. It found that:
The report is released as millions of people face up to rising household costs. Previous Citizens Advice research has revealed:
· 1 in 10 UK families – about 3 million households – were facing a cost-of-living crunch this winter, unable to cover even basic bills such as food and heating.
· 1 in 5 of all adults are cutting back on food shopping or turning off the heating, while 1 in 10 anticipate needing to use food banks.
Benjamin Napier, Chief Executive Officer at Citizens Advice Edinburgh said: “We are committed to giving people the knowledge and confidence they need to find their way forward – whoever they are, and whatever they need.
“Together with Royal Bank of Scotland we have been able to help people in the most vulnerable situations in our society across Scotland. The programme is an important way for us to reach more people who may need our help and might not have known about our services.”
David Lindberg, CEO, Retail Banking at NatWest Group said: “Through our partnership with Citizens Advice, we want to deliver personalised support to our most vulnerable customers. Many people who come to us for support have complex financial issues which impact their lives.
“In this current economic environment, it’s more important now than ever to be able to intervene when customers experience early signs of financial difficulty and help them to improve their financial capability.’’
Stephen Timms MP said: “It’s important that people have organisations they can turn to for support when experiencing financial difficulty.
“As we continue to recover from the pandemic and changes to the cost-of-living cause people to experience complex problems they may not have experienced before, it is encouraging that organisations such as NatWest Group and Citizens Advice are working together to meet the wider advice and support needs of vulnerable customers.”
You can access the full report here: Strengthening the safety net: supporting NatWest Group’s most vulnerable customers
If you are struggling with problem debt and worried about how best to deal with it, you’re not alone. That’s the message from a new Scottish Government campaign, encouraging people in Edinburgh to get the help they need and are entitled to get their finances back on track.
Problem debt could come from credit card debt that has gotten out of control, overdraft fees or from unpaid bills. Anyone can run into debt problems, and it can quickly spiral to unaffordable costs. But there is a wide range of trusted organisations, free support and advice available to help Edinburgh locals take control of their debt and ease their money worries.
As a starting point to living and enjoying a healthier financial lifestyle, you can follow seven simple top tips and useful guides from the Scottish Government’s partners.
A new website, moneysupport.scot, from the Scottish Government includes information and links to free and impartial debt advice to help people take control and live a healthier financial life. There’s also information on other financial matters such as affordable credit options and eligibility for benefits.
Sharon Bell, Head of StepChange, said: “With many Scots worried about money and debt problems, it’s important that people don’t fear seeking support before they reach financial crisis.
“By getting in touch with us, it’s a small and vital first step to getting your finances back on track and dealing with your worries. We can help people access and utilise the resources they are entitled to and will be there to support for as long as they need.
“StepChange is proud to partner with the Scottish Government on this campaign to raise awareness of the free support and advice available. Our skilled team of debt experts will help people achieve long-term financial control.”
DEBT ADVICE TOP TIPS
It’s hard facing up to problem debt and it’s easy for it to spiral. From missing payments to not opening bills or checking your statements you can quickly run into trouble and be left feeling anxious. By facing up to the facts, you can get the support you need and take back control of your finances. Go to moneysupport.scot for help.
The sooner you ask for help, the sooner you can work towards tackling your debt and easing your money worries. Free and impartial advice is available from a range of trusted sources including Christians Against Poverty (CAP) who can advise you on practical solutions to a healthier financial life.
Everyone’s circumstances are different. By calling StepChange, you’ll be put straight through to an expert money advisor, who can provide free debt advice tailored specifically to your needs and they will be there for as long as you need them.
Creating a budget detailing your income and what you spend each month, let’s you clearly track your finances. National Debtline’s, StepChange’s and Business Debtline all have useful planners available to download for free.
Understanding your ‘priority debts’ including rent can stop you facing serious consequences like being evicted. Citizens Advice Scotland has a useful guide to identify different types of debt and which ones you need to handle first.
Various schemes can assist you in paying back your debt with step-by-step assistance available from StepChange and National Debtline.
If your circumstances change such as losing your job, temporary solutions are in place to help manage your debt in the short term. National Debtline offer a useful digital guide on the various schemes in place to support you in seeking the help you may be entitled to.
For local advice and support contact Granton Information Centre – telephone 0131 552 0458 or 0131 551 2459 or email info@gic.org.uk
£33,000 funding secured from the Scottish Government to help with fuel poverty debts
Port of Leith Housing Association (PoLHA), in partnership with Changeworks, has secured £33,000 in funding from the Scottish Government and Scottish Federation of Housing Associations to support tenants with existing fuel poverty related debts.
The fund ensures we can support up to 50 households with this issue until the end of March 2022.
Currently, 21% of Edinburgh households live in fuel poverty, rising to 44% for social housing tenants. In Leith, 24% households live in material deprivation which has been further exacerbated by the pandemic.
Affordable Warmth Services Team Manager at Changeworks, Lisa Bygate, commented: “Through our work on the Link-Up Leith project we have seen increasing demand for support as people find themselves struggling with high bills and fuel debt.
“We are now seeing the highest incidences of households at risk of disconnection since the project started. This much welcomed funding will support people living on low incomes to have improved life skills and confidence to tackle fuel poverty issues themselves.
“We are delighted to be strengthening our partnership with Port of Leith Housing Association to provide support to their tenants and Leith residents with energy debt. We will be working closely with their welfare rights staff and other members of the Link-Up Leith project to identify and provide assistance to those who need it.”
PoLHA Group Chief Executive, Heather Kiteley, said: “I’m thankful that we have secured this funding to help our community during this time of rapidly escalating fuel costs.
“We are committed to ensuring our tenants’ welfare and I’m proud that the PoLHA Group has been able to react so quickly to our tenants’ needs and provide vital support.”
Eligible tenants will be identified for this grant through PoLHA’s Tenant Advice Service and Changeworks existing Link-Up Leith project run in partnership with Edinburgh Community Food and Stepping Stones.
Changeworks will also identify people eligible for support through referrals to their Affordable Warmth Service.
How to apply
Tenants can apply for the fund by speaking to their Housing Officer or our Tenant Advice team who can make a referral to Changeworks.
Other services
PoLHA offers the following support services to social housing tenants: welfare benefits advice, money advice and tenancy sustainment advice.
Visit advice and support for help.
The number of people finding it hard to keep up with bills and credit commitments has doubled since the start of the pandemic according to new research from StepChange Debt Charity.
The charity has found the proportion of people struggling is now nearly one in three (30%) GB adults – 15 million people – compared to 15% (7.5m people) who say they were struggling in March 2020.
The findings are part of a new report – Falling behind to keep up: the credit safety net and problem debt – which reveals the pandemic has further entrenched the use of consumer credit to make ends meet.
The report finds 8.6 million people in financial difficulty in Britain borrowed £26 billion to cover their basic needs in the last year. This includes 3.5 million people who have used credit to pay essential bills.
The number of people resorting to credit is expected to increase as the cost-of-living crisis pushes up the price of basic household essentials.
StepChange’s research reveals a credit market that does not always work for people in financial difficulty, with two-thirds (65%) of those in difficulty having kept up with credit repayments by missing bills, borrowing from family and friends or being forced to cut back to the point of hardship.
Despite rules designed to ensure those in financial difficulty access support, fewer than one in four of those struggling with credit repayments are in contact with their bank or credit firm.
Strikingly, half of GB adults (53%) say that they would be reluctant to seek help with financial difficulty from a bank or credit firm due to concerns about credit reporting and the anxiety and stigma of talking about financial difficulty.
The report finds that rather than access help, people struggling with debt can instead experience steps that make their situation worse. Among Stepchange clients who responded to an online survey, 26% were offered further credit after they were in financial difficulty, 35% had a payment taken they could not afford and 51% had interest added to a debt.
The lack of effective early intervention to identify and provide those in financial difficulty with a safe, fair way out of unaffordable debt is causing social harms, with 6.4 million struggling GB adults saying credit has had a negative impact on their health, relationships or ability to work in the last 12 months.
The research, based on a national survey of GB adults and an online survey of StepChange clients, highlights poor practice in the credit market such as ineffective affordability checks and automatic credit limit increases that draw financially vulnerable households into unmanageable debt.
With the cost-of-living crisis now further squeezing budgets StepChange is warning that many more people are likely to use credit to pay for essentials in the coming months. Urgent action is needed to support households to meet essential costs without resorting to credit.
The Financial Conduct Authority recently announced proposals to implement a new Consumer Duty that will require firms to focus on delivering good outcomes for consumers. StepChange is calling for the FCA to ensure the Duty changes practices that are failing consumers, including:
StepChange is also calling on the Government and the FCA to do more to provide alternatives to borrowing for households that are struggling to meet unexpected expenses, through grants via the social security system and a government-supported no interest loan scheme.
StepChange Chief Executive Phil Andrew said: “The sharp rise in the number of people struggling to meet their financial commitments should raise alarm bells across Government, banks and regulators.
“We are two years into a financially damaging pandemic and going through the sharpest cost of living increase in a generation. While consumer credit can potentially play some part in helping people navigate short-term pinch points, this must not be at the cost of their long-term financial and personal wellbeing.
“For our clients, a cost-of-living crisis is not new – for years we have been seeing a steady rise in the number of households who experience debt simply through a prolonged period of not having enough income to meet their basic needs.
“However, the number of such households looks set to grow, and in the absence of public policy intervention the risk is that such households will have no other option but to turn to borrowing in the short term, which will only exacerbate and prolong their financial difficulties.
“Those responsible for the steering us through these choppy financial waters need to be attuned to the harm many credit products, made available to people on the cusp of financial difficulty, can cause.
“The new Consumer Duty is a crucial opportunity for firms to redesign products and change practices to ensure credit does not exploit financial difficulty and those in difficulty get effective help fast.
“To resist acting is to risk a rapidly escalating debt crisis, particularly among lower income households.”
Which? is calling for stronger safeguards to stop online shoppers from choosing Buy Now Pay Later to pay for products without knowing the risks, as new research from the consumer champion reveals many people do not think that they are taking on debt when using this payment method.
Buy Now Pay Later (BNPL) has soared in popularity in recent years as a way for consumers to pay for goods and services, with the biggest provider Klarna now boasting 13 million customers in the UK.
But Which?’s research, carrying out in-depth interviews with 30 typical BNPL users, has raised concerns that shoppers do not fully understand the risks of choosing a ‘pay later’ option at the checkout.
Many of the BNPL users interviewed by Which? did not think of BNPL schemes as a form of credit, meaning they could unwittingly be exposing themselves to serious risks of missing repayments, such as late fees, marked credit reports or referral to a debt collector.
Instead, participants described the schemes as a ‘way to pay’ or a ‘money management tool’, rather than a credit provider. One user said: “It allows payments to be spread out for budgeting. It made things possible which in one go would have been extremely difficult and I would have probably had to borrow money from elsewhere.”
Though BNPL schemes are a form of credit, they work differently to more traditional methods of borrowing such as credit cards. Not all BNPL schemes run hard credit checks, for example, and users can normally sign up to a BNPL scheme in a matter of clicks.
Which? research found it was precisely this speed and simplicity when selecting BNPL at the checkout that contributed to users’ misunderstanding. Another user said: “It seems really convenient and no hassle. It just asks a few questions so it doesn’t feel like you’re committing to a credit agreement.”
The research also revealed low engagement with BNPL providers’ terms and conditions. Most BNPL users said they either skimmed the T&Cs or simply ticked a box to say they had read them in full.
As a result, some users had a limited understanding of the consequences of missing payments, and the safeguards and checks carried out by BNPL providers. Some participants were not aware there were late payment fees at all.
Throughout the research, Which? also found that BNPL users do not consider the prospect they might struggle to make repayments. In fact, using BNPL schemes made some consumers feel less concerned about making purchases they would not otherwise view as necessary or affordable.
“It softens the blow psychologically. It almost doesn’t feel like I’m blowing £100 on shoes,” said one participant.
Concerningly, many of the participants wrongly assumed the schemes were regulated. “I am surprised, I am shocked, they should be regulated. If you have a service that is not regulated you have no protection for consumers,” one participant said.
This lack of understanding around BNPL products is particularly concerning given previous Which? research that found people are more likely to be using BNPL at stressful and challenging times in their lives.
Missing a credit repayment or bill or experiencing a major life event – such as getting married, having a baby, moving home or being made redundant – increases the odds of using BNPL by around a third (38% and 35%, respectively).
That is why Which? is calling for stronger safeguards to protect consumers, including steps in the checkout process to ensure people understand they are borrowing money when using BNPL, and warnings about the risks of using the schemes.
Key information, such as payment terms, late fees and the potential consequences of missed payments, should be communicated at the point of transaction to help consumers make informed choices. Given the immediate risk, BNPL providers should proactively make their key terms and conditions more accessible, rather than waiting for regulation.
Affordability assessment should also be carried out for all BNPL transactions ahead of regulation being introduced.
As the government’s consultation into regulation of the BNPL market closes, the consumer champion wants no delay in regulating these schemes to ensure that those who use it are properly informed and protected.
Rocio Concha, Which? Director of Policy and Advocacy, said: “Buy Now, Pay Later (BNPL) schemes can offer speed and convenience at the checkout, but our research shows that many users do not realise they are taking on debt or consider the prospect of missing payments.
“That is why there must be stronger safeguards to protect consumers and warn about the risks of using the schemes. Payment terms, late fees and the potential consequences of missed payments should be communicated at the point of transaction.
“There must also be no further delay to plans for BNPL regulation, which should include much greater marketing transparency, information about the risks of missed payments and credit checks before consumers are cleared to use BNPL providers.”
A new campaign which will help people in the Lothians struggling financially get support and access the benefits that they are entitled to has been launched.
The campaign comes as a survey reveals that just over 1 in 5 (21%) Scots living in the Lothians, wouldn’t feel comfortable receiving any type of financial benefits or grants, even if they were eligible, and seeks to address the stigma that people may have around claiming benefits.
The YouGov survey, commissioned by the Scottish Government, also found that people in the Lothians were concerned about being judged by others for receiving benefits, with 17% saying that they were concerned about being judged for receiving Universal Credit, and 10% for receiving Child Tax Credits.
These results indicate that there may be people in the Lothians who are eligible for financial support, whether that be benefits or grants, but aren’t taking the help that’s available because of how others may perceive them for doing so.
The survey comes as the Scottish Government launches a dedicated website – www.moneysupport.scot – to help those experiencing financial difficulties find the support they need.
The Money Support Scotland website contains information and contact details for a range of organisations able to provide information on benefits people could be eligible for, where to go for free and impartial debt advice and how to apply for affordable credit.
The Money Support Scotland campaign is working in partnership with Citizens Advice Scotland and Advice Direct Scotland, which both help people understand what benefits they might be entitled to and how to apply for them.
The Citizens Advice network in Scotland offers free, impartial and confidential advice, with trained advisers able to help explain how people can maximise their income through benefits and grants, cut costs and help manage debt.
Its Money Map tool helps people check which benefits and grants they might be entitled to, as well as eligibility for council tax reductions and support with housing and energy costs. Advice Direct Scotland also provide financial advice and offer a free benefit calculator on their website.
Citizens Advice Scotland Chief Executive Derek Mitchell said: “People shouldn’t feel uncomfortable about accessing the support they are entitled to. That’s how the welfare state works – we all pay in and get support when we need it. That’s what the money is there for, and after the past few years people should be confident about getting the payments they are due.
“The reality is people are facing a perfect storm this winter of rising bills and falling incomes, so maximising your income and getting all the money you are entitled to is really important to help with bills and spending.
“Citizens Advice Scotland is proud to partner with the Scottish Government on this important campaign to ensure people get the help they need this winter. The Citizens Advice network can give people help in a variety of ways and during the pandemic we unlocked around £147 million for people through things like social security payments, employment entitlements and debt reductions.”
There’s a wide range of support available to Scots of all ages from one-off payments to help with the cost of school uniforms to ongoing support with living costs.
To find out where to seek advice on accessing the range of financial support available, visit www.moneysupport.scot.
