Council agrees £22 million Budget ‘savings’

‘It’s a broken council which is failing it’s people and this budget must be rejected’ – Linda Garcia, WIG group

Councillors have set Edinburgh’s budget after a marathon meeting at the City Chambers yesterday. A raft of deputations from across the city urged the council to reject a budget package of cuts and service reorganisation aimed at saving £22 million this year, but councillors voted to approved the budget.

Leading the deputations was Royston Wardieburn Community Centre’s Women’s International Group (WIG). Royston Wardieburn was the city’s very first purpose-built community centre – it first opened in 1965. Two years ago – after years of hard work by the management committee – a brand new centre was opened, but members fear that all that good work could be undone by proposals to change the way community centres are operated.

WIG’s Anna Hutchison told councillors: “We are very concerned about these proposals. We have achieved a great deal in our Centre in recent years, but there is still a great deal of work to be done and we cannot build on our achievements when everything keep changing.

“Cutting CLD (community learning and development) staff and removing them from centres seems very short-sighted given that the Scottish Government is now requiring all councils to produce a CLD plan stating how they intend to build stronger, more influential and inclusive communities and improve life chances through learning and active citizenship.”

She warned that voluntary management committee members would ‘walk away’ if proposals to change the role of CLD staff in the running of community centres is implemented.

WIG’s Linda Garcia added: “We do not accept the proposed budget. We do not accept the way Edinburgh’s finances are being run. We do not accept that inequality, poverty and powerlessness are inevitable in our communities.

“We have been ‘trained’ to believe that no alternative (to cuts) is possible and that achieving a decent and fair society is just too damn complicated, so best not to try! We do not accept that this is the case. We want a council which puts citizens at it’s heart”.

“We believe that this budget is unacceptable to the citizens of Edinburgh. Unfortunately, despite a string of scandals, the Council seems unable to change. It is a broken Council which is failing it’s people and this budget must be rejected”.

“We demand that you join the campaign to secure additional funding from the Scottish and Westminster governments to safeguard our public services.

“We demand that you support Unite’s campaign to restructure the £1.2 billion debt owed by the Public Works Loan Board – paying £56 million in interest charges each year is completely unacceptable.

“We demand that the Scottish Parliament orders a Public Inquiry to examine the mismanagement of this Council, the numerous scandals and cover-ups by successive administrations.

She concluded: “We demand that you return power to the people.”

The group, joined by supporters in the public gallery, then serenaded councillors with a song! Based on the original Italian partisan song Bella Ciao, WIG’s words are:

The public sector is for the people

Oh bella ciao; bella ciao; bella ciao, ciao, ciao

The public sector is for the people

Not for sale to profiteers.

Oh we are singing for education

Oh bella ciao; bella ciao; bella ciao, ciao, ciao

We are singing for education

And an equal right to learn.

The rich get richer, the poor get poorer

Oh bella ciao; bella ciao; bella ciao, ciao, ciao

The rich get richer, the poor get poorer,

Unnecessary and unfair.

They cut the funding, they cut the workers

Oh bella ciao; bella ciao; bella ciao, ciao, ciao

They cut the funding, they cut the workers

Ain’t no ‘Big Society’.

Following that musical interlude, WIG were followed by a succession of deputations from across the city, each one urging the city to think again. EVOC, Edinburgh East Save Our Services, Edinburgh Tenants Federation, Edinburgh Trade Union Council, UNITE Edinburgh Not for Profit Branch, Edinburgh Anti-Cuts Alliance, Friends of the Meadows and Bruntsfield Links, UNISON and the EIS: each one advanced powerful arguments – but ultimately each one was unsuccessful as councillors voted to press ahead with the cuts.

Protecting frontline services in Edinburgh for young, old and vulnerable residents was a priority at the budget meeting, according to senior councillors. Investment in roads and pavements, investing in school infrastructure and working towards the redevelopment of Meadowbank Sports Centre and Stadium were other key priority areas.

Councillors say public opinion expressed during the recent budget consultation helped to influence key decisions as they attempted to balance the city’s books.

Cllr Alasdair Rankin, Convener of the Finance and Resources Committee, said: “Given the financial challenges all local authorities are facing over the next few years, we want to invest in the areas that are essential to Edinburgh and so it is important that the public continue to tell us what is important to them.

“This year we published the draft budget in October and 3,525 people gave us their views – five times the number of responses compared to last year. We also used a new online planner to give respondents the opportunity to express what they feel the Council’s priorities should be. The planner allowed us to show where we will incur costs in 2017/18, to demonstrate the impacts of increasing or decreasing spending in all of our services. This was extremely popular and 1,719 of those people took Edinburgh’s Budget Challenge.

Cllr Bill Cook, Vice-Convener of the Finance and Resources Committee, said: “We used the feedback received during the consultation process to help us make many key decisions such as maintaining funding for homelessness services, not increasing allotment charges and putting an extra £5m towards improving roads and pavements.”

The eight successive year’s Council Tax freeze maintains Edinburgh’s band D rate as the lowest of Scotland’s four major cities.

The council tax band levels for Edinburgh in 2015/16 will be:

A: £779.33
B: £909.22
C: £1,039.11
D: £1,169.00
E: £1,428.78
F: £1,688.56
G: £1,948.33
H: £2,338.00

The total revenue budget is £949m for 2015/16. Council Tax funds 25% of this with 75% coming from Government grants and business rates. The total capital budget (including the HRA) is £245m.

Key budget provisions:

Ensuring every child in Edinburgh has the best start in life

– Allocated an additional £5m of capital to support rising school rolls

– More than £4m invested in Early Years Change Fund for services for the very youngest children

Ensuring Edinburgh, and its residents, are well cared-for

– Maintaining funding for commissioned homelessness services

Providing for Edinburgh’s economic growth and prosperity

– Maintaining £1m to continue supporting the Edinburgh Guarantee, helping improve job opportunities for young people

– Support the Strategic Investment Fund with an additional £4.5m

Strengthening and supporting our communities and keeping them safe

– Continuing to invest in community policing

– Allocating an additional £100,000 to each neighbourhood to allow local people to have an even greater say in how their area can be improved

Investing in roads, pavements and cycling infrastructure

– An additional £5m investment in roads and pavements taking the total to £20m

– Commit 8% of the transport revenue and capital budgets for creation and maintenance of cycle infrastructure

Becoming more efficient

– Delivery of procurement transformational efficiencies

– Implementing the Better Outcomes Leaner Delivery (BOLD) programme

– Reducing the head count of the organisation by developing existing staff, revising roles and responsibilities and implementing structural change in the organisation through the ’Organise to deliver’ programme

– Maximising income

– Maximising savings through the rationalisation of the Council’s property estate

– Reducing carbon footprint and generating income through strategic energy projects

While the council argues that front line services are being protected, campaigners believe city councillors have let the capital down.

One Unite member who attended the lobby said: “This is a sad day for Edinburgh. You might have thought that a Labour-led council, supported by the SNP, would stand up for workers and communities – well, today’s vote shows you can think again. You can’t cut 1200 jobs without it having a huge effect on services and the people who will suffer most are the people in the poorest communities, the people who depend most on council services. People are angry – and rightly so, because these cuts will do real damage. Edinburgh is a rich city, yet our politicians vote through cuts on this scale? It’s shocking – they should be ashamed.”

A member of the Anti-Cuts Coalition added: “Deputation after deputation urged the council to reject this budget but it’s clear the councillors had already made their minds up. They blame Westminster, they blame Holyrood but at the end of the day our councillors have got to take a long, hard look at themselves.

“They have got to make a stand – if local councillors won’t support and fight for their communities, who will?

“Communities are being treated with contempt and remember – these cuts are just the start. We are facing another two years of austerity budgets, with more services slashed and hundreds of jobs lost – and when members of the public wake up to that it will be too late.”

Visit our Facebook page to see a webcast of the Budget meeting

http://l.facebook.com/l/PAQGWhuX2/www.edinburgh.public-i.tv/core/share/open/webcast/0/0/0/0//webcast/0/0/0

You’ll find pictures of the lobby there too

Budget cuts could be avoided, say Edinburgh Greens

‘residents are well aware of the cuts that come from the council tax freeze and general reduction in council funding’ – Cllr Gavin Corbett

Budget cuts of £28.5 million could be avoided if Edinburgh had similar powers to councils elsewhere in the UK and Europe, according to the capital’s six-strong group of Green councillors. The city council sets it’s budget tomorrow and councillors look likely to approve swathing cuts to public services.

The Greens have published an alternative budget paper which shows how £25.7 million of extra income could be raised by giving the council modest extra powers such as a visitor levy and greater flexibility with council tax.

This, say the Greens, would mean extra priority for care for older people, funding for charities and community learning as well as new investment in school conditions and sports facilities.

Green Finance Spokesperson Cllr Gavin Corbett said: “Less than a year ago the Commission for Local Democracy showed that, across Europe, councils with comparable responsibilities to Edinburgh typically control 50-60% of their income, through local taxes and charges.

“In Edinburgh, those powers have been reduced to almost nothing, with dire consequences for local services. Indeed, the council’s biggest-ever budget consultation exercise showed that residents are well aware of the cuts that come from the council tax freeze and general reduction in council funding.

“So what I propose today is modest and affordable – less than 4% of overall spending – asking for the right to put to Edinburgh residents a choice to raising a bit more income in order to strengthen budgets for swimming pools, care services, community centres, homelessness charities and schools.

“I’m confident that, given that choice, investment in services would come ahead of an austerity-driven race to the bottom.”

The City of Edinburgh Council budget is set on 12 February 2015. A package of £28.5 million of cuts or savings has been proposed from a £962 million budget. Of the£28.5 million package, £5.2 million non-frontline cuts have already been approved last October.

Services under threat include:

– £4.3 million cut to charities and other third-party service providers

– Over £5 million cut to health and social care at a time of increasing demand

– £1.4 million cut to Edinburgh Leisure which runs swimming pools and sports facilities.

– £0.6 million cut to community learning and development

Other likely cuts include the closure of public toilets, reduction in library hours, nursery and childcare funding.

Agenda_of_12_February_2015

Tell George Osborne what he can do with his Budget!

Did you have your say on the city council’s budget proposals? Have you got the taste for balancing the books? Well, you now have the opportunity to give Chancellor George Osborne some timely Budget advice. Read on …

What would you like to see in Budget 2015?

The government is seeking your views on what you would like to see in Budget 2015, which will take place on Wednesday 18 March.

The government encourages open and transparent policy-making, and welcomes original and innovative ideas. Your views will be considered by HM Treasury as part of the policy-making process.

Please submit your representation by filling in our short survey.

If you would prefer to submit your representation as a file attachment, please email budget.representations@hmtreasury.gsi.gov.uk

For information on the correct procedure for submitting your representation, please view the guidance.

To allow for full consideration in advance of the Budget, any submission should be sent to HM Treasury by Friday 13 February

Follow HM Treasury on Twitter for all of our latest news and Budget coverage.

More money for Scotland’s health boards

NHS in Scotland to receive additional £65 million

The Scottish Government has today announced that an extra £65m will be made available to NHS in the next financial year. The funding boost for 2015/16 will ensure that all health boards will receive uplifts next year which are at least 1% above the rate of inflation.

This will bring all health boards to within one per cent of parity under the NHS funding formula, NRAC, a year earlier than planned.

Health Secretary Shona Robison (pictured above) said the funding increase demonstrates the Scottish Government’s commitment to protecting the NHS. She said: “This Government has not only protected the NHS budget, but increased it.

“Our NHS services faces challenges as a result of the increase in patients, with more complex illnesses, and the rising costs of expensive new drugs.

“This £65m additional investment increases the resources available to health boards will help alleviate these pressures and ensure our NHS can continue to deliver effective and sustainable care to all patients across Scotland.”

“We’re clear that all patients in Scotland should be treated as quickly and as effectively as possible, with the right care, in the right place, at the right time. With this increase in funding, health boards are being given more support to achieve this.

“Despite Scotland’s fiscal resource budget being slashed in real terms by 10 per cent by Westminster since 2010, we’ve increased the health resource budget by 4.6 per cent in real terms.”

Council makes BOLD case for ‘transformation and cost savings’

Restructure aims to deliver a ‘leaner, more agile council’

Detailed proposals have been unveiled to make Council services more efficient and customer focused, while addressing a budget gap of £67 million over the next three years.

As one of fastest growing local authority areas in Scotland, Edinburgh is facing an ever increasing demand for Council services, while the funds available to meet this demand are set to stay the same over the next few years.

The proposals follow a blueprint for the future organisation of the Council which was agreed in December 2014, subject to consultation. This report highlighted key areas where future cost savings and service improvements could be achieved. They included: improved neighbourhood and locality working; a more efficient corporate centre; improvements to the way the Council interacts with residents (Channel Shift); working with third sector partnerships and managing Council property effectively (property rationalisation).

The Council has an agreed pledge of no compulsory redundancies and it is envisaged that some reduction in roles will be addressed through natural turnover of staff.

The Council will also look to improve its approach to how staff are redeployed across different service areas, engaging and consulting with employees and Trades Unions as appropriate during this process.

Finance Convener, Councillor Alasdair Rankin (pictured above), said: “The Council needs to take significant steps to tackle the financial challenges it faces as demand for our services continues to increase. At the same time, we want to make services for residents more efficient and effective.

“We set the direction of travel last month when Council agreed proposals for a new organisational structure, enabling more effective decision making at neighbourhood level and improved partnership working with third sector organisations. We are now considering detailed proposals around this and how we plan to improve the way we interact with residents.

“We believe these priority areas for change will enable us to achieve service improvements as well as cost savings. Of course change on this scale brings challenges but we need to take decisive action now to meet our targets and create a stronger, leaner, more agile Council to better serve the people of Edinburgh.”

The latest proposals will be considered by the Finance and Resources Committee on Thursday 15 January. Further detail on proposals around Council property and workforce controls will be provided in the Spring.

Council budget cuts: meeting at Royston Wardieburn next week

Womens International Group (WIG) are holding a follow up meeting from our 9 December one – the council budget Cuts will be announced soon.

The meeting will take place on:

Wednesday 14 January

at Royston Wardieburn Community Centre at 6-30pm.

We are hoping the local councillors will be in attendance to be able to answer questions regarding the cuts .

All welcome

Anna Hutchison (on behalf of WIG)

COUNCIL BUDGET NEWS:

It was announced this week that more than 1,200 council jobs could go over the next three years under proposals to plug the city’s £67m funding gap.

The council insists there will be no compulsory redundancies and said the planned ‘transformation of services’ was designed to make them more efficient and customer focused.

City council Finance Convener Cllr Alistair Rankin said: “Of course change on this scale brings challenges but we need to take decisive action now to meet our targets and create a stronger, leaner, more agile council to better serve the people of Edinburgh.”Among the proposals under consideration are offering more services online, having a neighbourhood approach for face-to-face services and cutting grants to the voluntary sector by as much as 10%.The latest restructuring proposals will be considered by the Finance and Resources committee on Thursday and consultation with staff and trade unions is also being planned.

See below for relevant Council reports:

Item_7.3___BOLD_business_cases___delivering_a_lean_and_agile_Council

Item_8.1___Organise_to_Deliver___Next_Steps

New basic fee-free bank accounts will help millions manage their money

Government secures deal with the big banks on basic bank accounts – ending fees for failed payments

For the first time, basic bank accounts will be truly fee-free, helping people to manage their money without fear of running up an overdraft. Accounts will be available to anyone who doesn’t already have a bank account or who can’t use their existing account due to financial difficulty.

The Economic Secretary to the Treasury Andrea Leadsom recently hailed a major agreement between the government and the banking industry to establish new basic bank accounts that will end bank charges if a direct debit or standing order fails.

New basic bank accounts will help people who do not have a bank account or who are frozen out of existing accounts because of previous money problems.

Following extensive negotiations with the banking industry to bring basic bank accounts up to scratch, nine high street banks and building societies covering over 90% of the UK current account market have agreed to offer a better deal to customers.

Those banks are:

Barclays
the Co-operative Bank
HSBC
Lloyds Banking Group (including Halifax and Bank of Scotland brands)
National Australia Group (including Clydesdale and Yorkshire brands)
Nationwide
RBS Group (including NatWest and Ulster Bank brands)
Santander
TSB

The changes will minimise the risk that basic bank account customers will be forced into overdraft by fees or charges.

In some cases, charges had been as high as £35 per failed item, and uncapped, meaning charges could accumulate to hundreds of pounds over time and drive people into serious debt.

Basic bank account customers will now also be offered services on the same terms as other personal current accounts that the banks provides, including access to all the standard over-the-counter services at bank branches and at the Post Office, access to the entire ATM network.

There are an estimated 9m users of basic bank accounts in the UK.

This deal comes on top of the estimated £300 million cost to the banking industry of providing basic bank accounts today. It is vital that banks offer products which are suitable for day-to-day transactions for all consumers.

The Economic Secretary Andrea Leadsom recently met Toynbee Hall’s specialist financial advisers and people who may have found it difficult to access mainstream banking services in the past, to discuss how the new basic bank accounts will make a difference.

She said: “I welcome the banks’ agreement to remove these charges from their basic bank accounts. This means that people who don’t have an account, or who would struggle to get a standard account due to money problems, will be able to manage their money with certainty and clarity.

“It will end people being effectively locked out of their basic bank accounts due to high fees and charges when their payments failed.

“Ending this unfair situation is a real step forward for the banking industry’s most vulnerable customers and improving access to banking is a key part of our long-term economic plan.”

BBA Chief Executive, Anthony Browne said: “Banks in the UK lead the way when it comes to providing accessible banking and take their responsibility seriously – the proportion of the population with no account at all is less than a third of that in the US and Europe.

“Now we will be helping even more people access banking services than ever before, as these accounts are designed for people who don’t have a bank account today and are vulnerable.

“These basic accounts will make it easier for more people to manage their money. They will have many features that will help people to budget, pay bills and save up. We are delighted to be offering this service to those who will really benefit.”

Gillian Guy, Chief Executive of Citizens Advice, said: “A good bank account is an essential ingredient to managing your money. Any barriers to essential banking services can make it even harder for people keep on top of their finances. Up until now, some basic bank account customers didn’t get a debit card, were afraid of being hit with fees for unpaid direct debits and some were shut out of banking altogether.

“Citizens Advice has been at the forefront of the campaign for decent basic bank accounts, and is pleased that the Government and banks have listened to the problems experienced by our clients. We look forward to continuing to work with the Treasury as well as with banks to make sure these new standards meet the needs of customers.”

Graham Fisher, Chief Executive of Toynbee Hall, said: “The announcement to create genuinely accessible and inclusive fee-free bank accounts for the most vulnerable people is a significant step forward in creating a truly financially inclusive society.

“At Toynbee Hall we have helped a significant number of clients to set-up new bank accounts, which can at times be a difficult and frustrating process, but with these changes we will be able to help more people access this incredibly valuable financial product.”

The terms of the agreement are published today so that every customer knows what they can expect from their bank in future and the new accounts will be in place by the end of 2015.

The terms of the agreement make clear that the accounts should be made available where people are ineligible for a bank’s standard current account, and either:

have no bank account
have a bank account elsewhere, but want to change provider
have a bank account, but are in financial difficulty and want their bank to open a new, functional account for them.

Note: Not all banks will apply these criteria in full – some may choose not to set any eligibility requirements and offer customers a choice from their full range of personal current accounts.

New Year, new support for small businesses

Innovate funding to help small businesses grow

Most small businesses awarded Innovate UK funding from January 2015 will automatically receive business support to help them grow faster. The new growth support offers small and medium-sized businesses (SMEs) the chance to:

participate in a growth workshop
complete an online diagnostic of their business
discuss their business needs with a growth expert to develop a growth plan

Based on the results, SMEs will gain opportunities to get:

coaching
mentoring
entrepreneurial skills training

This will cover areas such as:

developing a business model
sales
strategic marketing
access to finance
leadership
change management

Innovate UK will meet the costs of this SME growth support. It will be provided by different organisations depending on where the SME is based:

in Scotland Scottish Enterprise and Highlands and Islands Enterprise

This growth support is being offered after a successful pilot project showed that businesses that combined our funding with additional business support were able to grow their businesses more quickly.

SMEs that combined funding from Innovate with business coaching:

saw an average 26% increase in turnover
created an average 4.6 new jobs

Mentoring and training in business skills also helped businesses to gain confidence and to make the most of their potential.

One of the companies that took part in the pilot was Bolton-based Bindatex, an innovative small business that is set to more than treble it’s turnover after receiving funding support from Innovate UK and business coaching.

Founder Chris Lever (pictured above) said: “It helped to take me out of the day-to-day production and think more strategically about how I was going to continue moving the business forward. I now have a clearer picture of where I want the business to go.”

See latest funding opportunities

New Year resolutions – and how to keep them

It’s a tradition on New Year’s Eve that you make a resolution for the year ahead. Some people pledge to lose weight, others decide to stop smoking and lots more say they are going to get fit and more active – but all too often you break that resolution just a few weeks into the New Year.

If you’ve made a New Year’s resolution – and you’re really, really determined to stick to it this time! – here’s some help and advice to assist you on your journey.

Maybe this time …

1. LOSE WEIGHT and/or GET FIT

One of the most common New Year resolutions is to eat better, exercise more and lose weight. After all of the rich and indulgent feasts you’ve had this holiday season, it might seem easy to stick to a diet of leafy greens at first. But when those cravings set in, it can be hard to stay on track with your diet. Plus, cold weather makes it harder for some people to get motivated and hit the gym.

If you’re looking to eat more healthily, ignore faddy diets – portion control will play a big part in your success. One good way to be more aware of what you’re eating is to use a kitchen scale to measure ingredients or weigh out portion sizes. A solid kitchen scale shouldn’t cost the earth and it’s an investment worth making.

Check out the library for books on good food and healthy eating, and Pilton Community Health Project’s website is a mine of useful information too www.pchp.org.uk

Many people sign up for a gym membership at this time of year but for a considerable number that’s as far as it goes – it can be hard to get motivated to leave the house on cold January days and evenings; it’s so much easier to put it off to another day! Gym memberships can also be very expensive – again, Pilton Community Health should be your first port of call for local exercise and healthy activities.

With Ainslie Park Leisure Centre on your doorstep (551 2400) it’s worth checking out Edinburgh Leisure to see what’s on offer both locally and across the city: telephone 458 2100 or visit www.edinburghleisure.co.uk

If you need a little reminder to be active, a fitness tracker like the Fitbit Flex can be a big help, but starting at around £50 they are quite an expensive reminder! I find trying to tie my shoelaces is enough of a reminder for me …

2. QUIT SMOKING

You know smoking is a bad habit that hits both your health and your wallet, but stopping is tough – it can take some people years and many, many failed attempts before they kick the habit. If you want 2015 to be the year you finally quit smoking, there are all kinds of products that can help wean you off the fags: there’s gum, patches and nasal spray inhalers – all of which help give you a boost of nicotine without having to inhale all that nasty smoke.

Many are turning to e-smoking as an aid to kicking the tobacco habit. If you’re looking to try out e-cigs as a way to cut back on actual cigarettes, you can now get a starter kit, charger, and carrying case set at increasingly competitive prices.

People who are trying to quit smoking the traditional way also appreciate having additional support options, and Allen Carr’s Easy Way to Stop Smoking book is still the most popular on the market.

NHS Lothian offers a range of stopping cessation sessions and Smokeline Scotland is also a great place to go for support, advice and tips.

http://www.nhslothian.scot.nhs.uk/HealthInformation/HealthAwareness/Smoking/Pages/default.aspx

Smokeline 0800 848484 www.canstopsmoking.com

3. SAVE MONEY AND REDUCE DEBT

Whether you want to get out of debt or just start saving for a big ticket item, there are lots of people who will be trying to spend their money more wisely in 2015. Setting up a personal budget can help you monitor your spending.

One tactic you can try to help you stay on budget is doing all your shopping in cash when you can, rather than using a debit card, cheque or credit card to pay for items – it’s estimated that people who pay for things with a card can spend almost 20% more on a transaction than those who are paying with cash.

If you’ve racked up a lot of debt on a credit card and you’re paying a hefty rate of interest, you should look around to see what deals are on offer and transfer that debt over to a 0% balance transfer credit card. By doing so, you’ll be able to avoid paying interest on that debt for a set period – some up to 35 months – and this will give you plenty of time to start tackling your debt without worrying about the interest accumulating.

The Money Advice Service has a good website for money saving advice, but if you are already in debt – get help, don’t let your problems escalate. Pilton CAB and Granton Information Centre are two local agencies that can help.

Don’t be tempted by payday loans or worse – the interest is astronomical. Check out Credit Unions which are a much cheaper and ethical way of helping you to manage your money.

Remember, if you spent too much over Christmas those bills will be arriving soon, so ACT NOW.

www.moneyadviceservice.org

www.moneysavingexpert.com

www.capitalcreditunion.com

North Edinburgh Credit Union, Wardieburn Drive 466 5006

Granton Information Centre, West Granton Road www.gic.org.uk 551 2459

Pilton CAB, Drylaw Shopping Centre on Ferry Road 202 1153 www.citizensadviceedinburgh.co.uk/

The Scottish Government has also just launched a new website to help guide you to the support and advice you need. Visit:

http://www.lightentheloadscotland.gov.uk/

4. LEARN A NEW LANGUAGE or SKILL

It’s never too late to learn something new and the New Year is the perfect time to try something different, whether for leisure or to open up new employment opportunities.

Locally, check out Edinburgh College – new courses start this month – and Craigroyston Community High School is running a wide variety of adult day and evening classes.

www.edinburghcollege.ac.uk

www.edinburgh.gov.uk/info/20070/adult_and_community_learning

5. GO GREEN

Thinking about going green this year? There are lots of small changes you can make to your lifestyle to reduce your energy bill, recycle materials in innovative ways and help do your part to make the planet healthier. www.greenerscotland.org is a good place to start for ideas.

6. VOLUNTEER and/or GIVE TO CHARITY

Many people plan to be more generous with both their time and any disposable income they may have in 2015 (some chance, I hear you say!)

Looking to donate time, not money, then? There are lots of ways you can donate your time – local and national charities and voluntary organisations are crying out for willing volunteers in all sorts of roles. There’s bound to be something to suit you – a good place to start is Volunteer Centre Edinburgh – go to www.volunteeredinburgh.org.uk to see what you can do.

Time Banks are another great way to donate your time, energy and skills and get the same back in return – visit www.edinburghtimebank.org.uk for more information.

So, you’ve decided on your resolution? Here are some tips to help you stay on track when times get tough:

Set yourself realistic goals, not impossible targets. Don’t think about losing two stone in a month, or running a marathon after a fortnight’s exercise!
Don’t be all-or-nothing – you’re likely to have the odd slip along the way but don’t allow that to make you give up
Remove temptation – no point in making things even more difficult for yourself
Reward yourself along the way
Thing positively and keep your eye on the prize – there may be tough times but the end result will be worth it!

GOOD LUCK!

Relief for payday loan customers as costs are capped

‘Today’s crackdown on the payday lending market comes not a moment too soon’

A cap on the cost of payday loans has come into effect. Payday loan rates will now be capped at 0.8% per day of the amount borrowed, and no-one will have to pay back more than twice the amount they borrowed.

The Financial Conduct Authority (FCA) said those unable to repay should be prevented from taking out such loans.

Payday loan customers will see the fees and interest they pay capped from today amid moves to stop such debts spiralling out of control.

The new rules mean that people using payday lenders and other short-term credit providers will see the cost of their borrowing fall – and those who cannot afford to repay their debt on time will never pay back more in charges than the sum they initially wanted to borrow.

For all high-cost short-term credit loans, interest and fees must not exceed 0.8% per day of the amount borrowed.

The Financial Conduct Authority (FCA), which oversees the industry, said the move will lower costs for most borrowers and ensure that charges are proportionate to the size and duration of the loan.

Default fees for borrowers who fail to repay on time will be capped at £15 under the measures, which are the latest in a string of clampdowns on the much-criticized sector.

The new rules mean that, for example, if someone borrows £100 for 30 days and pays back on time, they will not be charged more than £24. Someone who borrows £100 but struggles to repay their debt will never pay back more than £200, including fees and charges.

Short-term lenders said the caps will lead to fewer people getting loans from a smaller group of lenders. They said that initially at least, the cost of a payday loan will generally be at or near the cap.

Stricter rules for credit brokers are also being applied from today. Concerns have been raised that consumers have often mistaken credit brokers for lenders.Royal Bank of Scotland (RBS) recently highlighted a case involving someone looking for a £100 loan who ended up being charged £700 because their details were passed to 10 different middlemen firms.

The FCA has previously seen evidence of fees being taken by credit brokers without informed consent and under hidden or misleading terms and conditions. Under the new rules, a firm will not be able to request a consumer’s bank details or take a payment without their explicit consent first.

Martin Wheatley, chief executive of the FCA, said the payday loan cap will make the cost of a loan cheaper for most consumers.

He said: “Anyone who gets into difficulty and is unable to pay back on time, will not see the interest and fees on their loan spiral out of control – no consumer will ever owe more than double the original loan amount.”

Consumer group Which? said its 2014 research found that an average of 880,000 households took out a payday loan each month.

It’s ‘Clear Up Credit” campaign said the regulator should look to make it easier for people to compare the cost of different types of debt, including unauthorised overdrafts and credit cards.

Which? executive director Richard Lloyd, said: “Today’s crackdown on the payday lending market comes not a moment too soon. Lenders must now start competing on price and treating their customers fairly.

“The regulator has clearly shown it’s prepared to take tough action to stamp out unscrupulous practices, and they must keep the new price cap under close review. It’s now time to turn the spotlight on unfair practices in the wider credit market.

“We want to see an end to excessive fees that also make it hard to compare different loans, including those charged for unauthorised overdrafts and credit cards.”

The payday loans industry has undergone a series of shake-ups since coming under the regulation of the FCA last April.

The Office of Fair Trading, FCA’s predecessor body, expressed concerns that some payday firms appeared to base their business models around people who could not afford to pay back their loans on time, meaning the cost of the debt ballooned as they were forced to ‘roll it over’ – and extra fees and charges were added on top.

After coming under the FCA’s supervision, payday lenders were banned from rolling over a loan more than twice and and they can only now make two unsuccessful attempts to claw money back out of a borrowers’ account.

Russell Hamblin-Boone, chief executive of the Consumer Finance Association, which represents short-term lenders, said: ” This is the start of a new era for short-term lenders who are operating in an entirely new lending landscape under the FCA.

“We expect to see fewer people getting loans from fewer lenders and the loans on offer will evolve but will fully comply with the cap.

“The commercial reality is that the days of the single-payment loan are largely over – payday loans are being replaced by higher value loans over extended periods.

“Initially, prices of loans will be at or near the cap. In time we may see risk-based pricing, but innovation could be stifled by the threat of the regulator as lenders seek FCA authorisation.”

The FCA said the reforms needed time to bed down before their effect was assessed but that it would be monitoring the situation carefully. The reforms will be reviewed in two years.