Tag: Granton Information Centre

New debt letters rules will support people in problem debt

New rules for debt letters will help people to better understand and manage their debts, reducing distress and supporting mental health

The letters borrowers receive from their lenders when they are seriously behind on repayments will be easier to understand and less intimidating as a result of new rules proposed by the Treasury today.

Default Notices are designed to give people who are falling behind on their debts fair warning before lenders take further action, but much of the formatting and content has not been updated in nearly 40 years.

Research from the Money and Mental Health Policy Institute and debt charities has shown that large amounts of capitalised text and legal terms can make the information contained in the letter hard to understand, which has the unintended consequence of confusing and distressing people. This has a negative impact on people’s mental health as well as their ability to effectively manage their debt.

As part of the government’s effort to support people in problem debt, it will legislate to change the language and presentation of information in debt letters. T

The new rules will make debt letters less threatening by restricting the amount of information that must be made prominent and requiring lenders to use bold or underlined text rather than capital letters. Lenders will also now be able to replace legal terms with more widely understood words and letters will clearly signpost people to the best sources of free debt advice.

John Glen, Economic Secretary to the Treasury, said: Being behind on your credit repayments can be a really distressing experience which is made worse by a confusing and intimidating letter from your lender.

“As part of our effort to help to people struggling with their finances, it’s right that we look again at the legislation around these letters. These new rules will help to take the fear out of finance by ensuring that letters are easier to understand, less threatening, and empower people to take control of their finances.

“Some vital work has been done by charities, the industry and the Money and Mental Health Policy Institute and I am grateful for their support in tackling this important issue.”

Martin Lewis, Founder and Chair of the Money and Mental Health Policy Institute charity, said: It’s no exaggeration to say that this change could save lives. Over 100,000 people in England alone attempt to take their lives each year due to debts, and four times that consider it.

“So we’re delighted the government has agreed to back this element of our campaign and change the default demand rules. The last thing people struggling with debt need is a bunch of thuggish letters dropping through the letterbox, in language they can’t understand, written in shouty capitals alongside threats of court action.

“And the timing is crucial, with millions of people facing debt and distress due to the pandemic, the sooner we end these out-of-date laws which force lenders to send intimidating letters the better. Today’s changes will make the most distressing debt letters much less intimidating, and crucially will also easily and calmly point people in serious debt to get the free, non-profit, debt advice they need.”

Eric Leenders, Managing Director, Personal Finance at UK Finance said: “The banking and finance industry understands the impact that debt can have on a customer’s wellbeing and has been working closely with government to help support customers, especially those in vulnerable circumstances.

“Lenders have to send Default Notices and these important changes announced today will ensure that customers receive more appropriate and supportive communications.”

These new rules are the latest in a wide package of support put in place to help people struggling with their finances, especially through coronavirus.

This includes £38 million of extra funding to debt advice providers this year and working with lenders and financial regulators to give people access to payment holidays on their mortgages and a range of consumer credit including credit cards, personal loans, motor finance and payday loans.

The government has also given the Financial Conduct Authority strong powers to protect consumers who borrow money, including cracking down on payday lenders, capping the cost of rent-to-own, and taking action on overdraft fees.

The new rules will be delivered through secondary legislation and are expected to come into force in December 2020. All lenders will then be required to make the changes within six months.

If you are experiencing debt problems, don’t ignore it and hope it will go away – it won’t; it will get worse. Seek help NOW.

Granton Information Centre can help. Telephone 0131 551 2459 or 552 0458 or email info@gic.org.uk

Expansion of free debt advice service

More people will be able to benefit from free debt advice following investment from the Scottish Government. More than £2.4 million will be distributed among a number of advice organisations to expand their services and invest in more effective methods to help individuals with problem debt.

The investment will assist projects offering face to face advice using video calls and projects aimed at moving debt solution processes online. This investment will also help the debt advice sector to manage the expected increase in demand as a result of the economic impacts of coronavirus (COVID-19).

AdviceUK will be one of the new recipients of funding and has 70 Scottish-based partners who will now be able to extend their services.

Minister for Communities Aileen Campbell said: “I am pleased that this funding will enable more people to access free debt advice, especially as we expect to see increased demand on these services due to the long term effects of COVID-19.

“Our Debt Advice Routemap sets out our vision for a user-friendly and collaborative free debt advice system in Scotland. Through this additional investment we aim to distribute funds across Scotland, focusing on those hardest to reach, including those who maybe have never sought advice before.

“Debt advice services are looking at innovative new approaches, using technology and new ways of working. I would encourage anyone who finds themselves struggling with problem debt to seek help at the earliest opportunity.”

AdviceUK Executive Director Chilli Reid said: “AdviceUK warmly welcomes this funding from the Scottish Government, which will make a huge difference to people struggling with money worries.

“Our members serve communities across Scotland, and this investment will support them in their vital work tackling child poverty, supporting households on low incomes, and helping those most exposed to the impacts of COVID-19.”

The funding is part of the Financial Services Levy for debt advice which has been increased by the UK Government in response to the expected growth in demand for free debt advice due to the long-term effects of COVID-19.

The funding was devolved to the Scottish Government in 2019 and the Debt Advice Routemap was launched to help improve access to services across Scotland.

Established in 1979, Advice UK is the largest network of independent advice providers in the UK.

Granton Information Centre has continued to provide an advice service throughout the coronavirus lockdown, supporting people with debt, housing and employment issues.

If you need help to deal with mounting debts, or are unclear about which benefits you may be entitled to, call Granton Information Centre on 0131 551 2459 or 0131 552 0458 or you can email info@gic.org.uk

GIC advice sessions to resume at Muirhouse Medical Group

Granton Information Centre are delighted to announce that we are resuming our benefits/money/debt advice outreach service at Muirhouse Medical Group from the beginning of September.

The appointments are with our advisor Kay on Wednesday afternoons and can be made by contacting the surgery directly on 0131 202 4444.

Please be aware these appointments are for those people who are registered with Muirhouse Medical Group only.

Housing advice during Covid-19

Advice from Granton Information Centre

For many people their right to live in their own home goes along with a responsibility to make all relevant payments to a landlord (by way of rent) or a lender (in respect of mortgage repayments). 

What may seem like a (possibly just about) manageable amount to pay in good times can quickly become unmanageable and frightening when rapid, unplanned changes lead to reduced income.  Although these are challenging circumstances, help is available from different services covering issues likely to relevant, including:

Issues affecting both tenants and mortgage holders:

  • reviewing the household budget to establish how income is spent and how it could or should be spent;
  • looking at the whole picture and how to prioritise debts and spending;
  • getting a benefit check to make all relevant benefits are in payment at the right amount and identifying those for new claims;
  • developing a manageable budget including (re)payment plan;
  • assisting/guiding in communication and negotiation with lenders and creditors;
  • making claims on any relevant insurance policies;
  • assisting with the urgent emergency as it occurs;
  • looking at housing options and interaction with benefits;
  • identifying special legislative provision arising from Covid-19 which enhances individual protection such as extension of time periods for giving of notice to tenants and moratium.

Tenants in Scotland

  • gaining advice and support through repossession and eviction processes;
  • helping to understand letters, contracts and other documents;
  • awareness of relevant legislation including temporary changes that extend most periods of notice to be given to the tenant during the Covid 19 emergency;
  • assessment of reasons for a fair end of tenancy;
  • representation in Housing Tribunal or Sheriffs Court.

Mortgage payers in Scotland

  • requesting a mortgage payment holiday (usually a voluntary arrangement of up to 3 months with those mortgage arrears accrued during the holiday repaid at a later date) and checking if any impact on credit history;
  • accessing Support for Mortgage Interest (a loan to help pay mortgage interest if you have been claiming income related jobseekers,income based  employment and support allowance or  income support for at least 39 weeks or universal credit after 9 payments.  Also accessible for those on pension credit from first day of claim.
  • considering a formal debt management approach (specialist service) or revision to existing agreements where these exist;
  • seek money and/or financial advice – especially urgent if repossession process threatened/started.

If you are struggling to deal with issues like these, seek help straight away.

Granton Information Centre offers free, professional, independent advice. To find out about how Granton Information Centre can help you, telephone 0131 551 2459, 0131 552 0458 or email info@gic.org.uk

Free School Meals: It’s not too late to claim

FREE SCHOOL MEALS 

information for parents and carers

from GRANTON INFORMATION CENTRE

Families of children from P4 to S6 who receive Free School Meals, and those in P1 to P3 who are entitled to clothing grants, will receive a fortnightly electronic payment during term time and the Easter Holidays equivalent to the cost of a school meal.

Payments are £22.50 per child every fortnight until further notice from 23 March.

All children in primary 1 to 3 receive free school meals if they are attending school, but not free milk or a clothing grant.   In the present circumstances, those families won’t receive the £22.50 fortnightly payment unless they are eligible to get the clothing grant and free milk due to low income.

The criteria is the same as for P4-7s.

IT’s NOT TOO LATE TO CLAIM

Parents may still apply for the current academic year and, if eligible, awards will be backdated to 23 March, the start of school closures. 

The eligibility for free school meals and/or substitute payment (including P1-3s) depends on the family’s income and they need to be in receipt of one of the following benefits:

  • Universal credit (with monthly earnings up to £610)
  • Income Support and Income Based Job seekers Allowance or Employment and Support Allowance
  • Child Tax Credits only with gross income up to £16105
  • Child and Working Tax Credits with gross income up to £6900
  • Support under Part VI of the Immigration and Asylum Act 1999

Some families will get an automatic award for 2020-21 but others will have to apply when the time comes (they are not receiving applications yet).

Clothing grants applications closed on 31 March but will reopen for the next academic year later.

For more information and keep up to date with possible changes please visit www.edinburgh.gov.uk/schoolgrants

https://www.edinburgh.gov.uk/food-clothing/free-school-meals-school-clothing-grants/1

MSPs call for significant changes to debt solution

Holyrood’s Economy, Energy and Fair Work Committee has published a report on protected trust deeds citing that changes are needed to make the debt solution more effective in supporting people who are in debt.

A protected trust deed is one of three statutory debt solutions in Scotland. It involves a debtor’s assets being managed by an insolvency practitioner for the benefit of the creditors for a four-year period. During this time, part of the debtor’s income is paid to the insolvency practitioner.

Last year around 8,000 people entered a protected trust deed, 150,000 people sought debt advice and, beyond that 600,000 adults are considered to be over-indebted in Scotland.

Amongst its calls within the report, the Committee asked for changes to the way fees are charged in protected trust deeds. The current rules can see debtors making contributions but not reducing their overall debt levels for at least the first two years.

Committee Convener Michelle Ballantyne MSP said: “Now more than ever people’s finances will be feeling the strain, and some will be contemplating seeking help to clear their debts.

“A debt solution should work in reducing that person’s debt. We heard evidence which showed that fees were being frontloaded resulting in the overall debt not lowering despite payments being made. This needs to change.

“The Committee welcomes the Scottish Government’s commitment to conduct an overarching debt review. However, it is incredibly important that the Scottish Government listen to the Committees recommendations to ensure that protected trust deeds act as an effective debt solution and debtors are safeguarded from the potential harm that can be caused when things go wrong.”

The Committee also heard evidence that online advertising and social media campaigns can target people in debt, offering a solution which is not always suitable for their circumstances.

Michelle Ballantyne MSP added: “People in debt must receive the right help and advice and not choose a solution based purely on what they saw on social media that day.

“The Committee recommends tighter regulations on online advertising and believes that free independent money advice would help ensure that people make the decision right for them.”

There are three statutory debt solutions in Scotland:

Bankruptcy – All of the debtor’s assets are managed by a trustee for the benefit of creditors for a four-year period. Contributions from income will also be required, where appropriate. Almost all outstanding debts are written off at the end of the four-year period, allowing the debtor to become debt free.

Debt Payment Programme under the Debt Arrangement Scheme – Debtors make payments over an extended period of time to pay off their debts. It can last for any “reasonable” time period, but the average is around seven years. Debts are not written off, so the scheme is only available to those who can repay in full over the length of the scheme.

Protected Trust Deed – As with bankruptcy, a debtor’s assets are managed by a trustee for the benefit of creditors for a four-year period. Contributions from income will have to be sufficient to pay the trustee’s fee and provide a return to creditors. Protected Trust Deeds are seen as offering more flexibility than bankruptcy.

Informal debt solutions – Most debtors negotiate informally with their creditors to make lower repayments. These arrangements can be unstable, and do not prevent creditors from taking action to enforce their debts if they think they should be paid more.

The published report can be found here.

Are you struggling to manage debt? Free, independent advice is available. Granton Information Centre’s office on West Granton Road is currently closed to the public, but they at still here to support you.

If you have money worries, employment concerns or housing issues, or if you are claiming benefits for the first time and find it all very complicated, contact Granton Information Centre and speak to an adviser:

Telephone 0131 552 0458 or 0131 551 2459

Email info@gic.org.uk

Granton Information Centre: here to help.

Money worries? Financial support and debt advice available

29% of people in Scotland report being worried about their finances having already felt the negative impact of Coronavirus.

People in Edinburgh facing financial difficulty as a result of the Coronavirus outbreak are being encouraged to seek guidance on the help available to them.

Research commissioned by the Scottish Government in partnership with YouGov has revealed that nearly a third of people across Scotland (29%) have already felt the financial strain of the current Covid-19 outbreak and are worried about its impact.

The survey of over 1000 respondents also shows that 71% of people in Scotland are concerned about the lasting impact on their finances.

These findings follow the launch of a new campaign by the Scottish Government and the Citizens Advice network that aims to raise awareness of the financial support available to people in the Capital.

The campaign provides information and advice on issues including rent and mortgage payments, energy bills, council tax, and benefits people may be entitled to.

People throughout Edinburgh are able to access this advice online, by contacting their local Citizens Advice Bureau or getting in touch with any of the capital’s independent advice providers including Granton Information Centre and CHAI.

Cabinet Secretary for Communities and Local Government Aileen Campbell said: “There is no doubt that this is a difficult and worrying time for everyone. Today’s findings further underline the need to provide people across Scotland with the correct support, guidance and information to help them with their finances.

“We need to ensure that people are aware of the support that they are entitled to from the DWP and I would encourage everyone across Scotland who is facing financial difficulty to look into what additional help is available to them.

“That’s why we’ve been working with the Citizens Advice network in Scotland to create this central source of information – with everything from guidance on benefits, right through to what you can do if you are worried about paying your mortgage or rent.”

Adam McVey, City of Edinburgh Council Leader, said: “Work has been ramping up across Edinburgh to make sure our hardest hit citizens get the help they need. From welfare, council tax and debt support for those facing financial hardship, to food supplies for our most vulnerable families, we’ve been pooling resources to direct help to those who are in crisis.

“Our five Council Resilience Centres are providing a base for officers to work from so that they can target online and phone support for those facing hardship or worried about homelessness. And we’re building up a picture of how our most at-risk residents are impacted, so that we can develop longer-term measures through the Edinburgh Poverty Commission.

“It’s going to be so important that we work together to tackle poverty and, in these uncertain times, we know financial worries will weigh on people’s minds. Don’t suffer alone. Know that help is available and get in touch with Citizens Advice or our own Advice Shop for help.”

The Citizen’s Advice network website features dedicated COVID-19 content along with a telephone helpline. Those who have been financially impacted by the coronavirus outbreak and require free, confidential, financial support, can visit cas.org.uk or call 0800 028 1456.

Local Citizens Advice Bureaux are situated around the country. To find your local service, simply enter your postcode at cas.org.uk/bureaux
Free, professional help is also available from Granton Information Centre and Community Help & Advice Initiative (CHAI) who, along with Citizens Advice Edinburgh, deliver debt advice across the capital.
For more information, check out the city council’s advice pages on welfare support, financial worries and debt information.

Disability groups call for urgent changes to benefits system

The Disability Benefits Consortium (DBC), a network of over 100 organisations, have written an open letter (below) to Thérèse Coffey, Secretary of State for Work and Pensions to call for urgent changes to the benefits system to ensure we protect disabled and seriously unwell people from further physical and financial harm during the covid-19 emergency.

Full details of these proposals can be found in the DBC reports section.

“Dear Secretary of State,

Covid-19 – the Disability Benefits Consortium’s proposals for additional short-term measures to protect disabled people’s incomes

The Disability Benefits Consortium (DBC) is a network of over 100 organisations with an interest in disability and social security. For our full list of members, see https://disabilitybenefitsconsortium.wordpress.com/dbc-members/

Using our combined knowledge, experience and direct contact with millions of disabled individuals, people with long-term health conditions and carers, we seek to ensure that Government policy reflects and meets the needs of all disabled people.

The DBC welcomes the recently announced measures designed to protect the incomes of large numbers of people whose livelihoods have been adversely impacted by the Covid-19 crisis. But we believe that these support measures need to go further.

People living with a disability and those with long-term health conditions tend to have lower real incomes and higher costs than the general population and we are calling on the Government to produce a more comprehensive package of support, to better protect these individuals and their families, at this difficult time.

1. One of the most pressing issues is the current level of demand on the system due to the unprecedented number of new claims. This is causing extremely long waiting times and problems with the digital claims process. We welcome the commitment to expand the Department’s capacity, but the challenge remains considerable. We believe that the Government should give high priority to resolving urgently the technical and capacity issues involved.

Also, clear guidance must be made available (to the public and to staff) regarding the correct process to make both a digital claim for Universal Credit (UC) and a non-digital claim, including how the verification call is to be made – that is, if outbound from the DWP rather than inbound from the claimant.

2. The increase in the UC standard allowance is very welcome, helping to cushion the financial shock, which many will experience. However, other claimants likewise face financial challenges, especially after several years of a benefit freeze. We recommend that the Government should give a corresponding uplift of “legacy” and similar benefits – including, for Employment and Support Allowance (ESA), the restoration of the Work-Related Activity Group (and UC equivalent Limited Capability for Work) addition.

3. We believe that artificial limits that keep many households (mainly with children) below basic benefit levels are particularly inappropriate at this time. We recommend that the Government should suspend the benefit cap and the “two-child policy”.

4. Any Working Tax Credit (WTC) claimant who loses their job over the coming few months will not be able to continue claiming WTC and will have to claim UC instead. This means they will lose Transitional Protection (TP). As you know, this is a temporary top-up payment that would have been added to their UC to offset any losses, when the DWP eventually transferred them from WTC – but it is not payable when you move to UC because of a change of circumstances, such as job loss.

Disabled people in work and parents of disabled children stand to lose far more than most people if they lose TP – sometimes amounting to thousands of pounds a year. This will make it even more difficult for them to recover from the economic shock of the next few months.

The recommendation above to restore the Limited Capability for Work Addition to UC will help, as long as these claimants can retain it in their UC calculation up to and after they return to work.

Also, we recommend that the lower rate of the disabled child element of UC should be restored to its level in the legacy system.

5. New claimants for UC will have to wait at least five weeks until they receive their first payment. We know that this can mean people face a significant reduction in income, leading to worry about how to pay bills and buy food. The DWP offers an “advance payment”, in effect a loan deducted from future payments, which can leave people struggling to make ends meet. We recommend that the Government should make all UC advances for disabled people non-repayable grants.

6. There has been no formal indication that work-related conditionality has been suspended, although it is difficult to see how it could be meaningfully applied in present circumstances. We recommend that the Government should explicitly suspend work-related conditionality and associated sanctions.

7. Currently, 1.3 million claimants have deductions made from their UC payments to pay debts – over half of them losing 20% or more of their basic allowance. We recommend that the Government should suspend all debt repayment deductions from UC, to ease financial hardship for the duration of the current crisis.

8. It is very important that, during this epidemic, people living with a terminal illness have swift access to benefits via the Special Rules for Terminal Illness. It is our understanding that under UC, people with a terminal illness will temporarily be able to apply via the Special Rules without the DWP needing sight of a DS1500 form (a form signed by a medical professional to say that the person has a reasonable expectation of death within six months). If this is the case, then this is a very welcome step. We recommend that the Government should extend this provision to other benefits which can be applied for under the Special Rules: ESA, Personal Independence Payment and Attendance Allowance.

There are further measures that the Government could take that are likely to have an impact on those living with a disability and in need of benefit support at this time, including:

9. As medical professionals come under more pressure over the coming weeks it is unreasonable to expect they will be able to provide medical evidence to support a claimant’s benefit application. We recommend that the Government should extend the time requirements for claimants to return paperwork and to gather medical evidence where necessary.

10. Similar pressures are likely to slow down the Mandatory Reconsideration (MR) process. This will mean people could be receiving less financial support than they are entitled to. We recommend that the Government should pay the basic/ standard rate to claimants whose benefit is suspended pending MR, until the process is completed – and also, fully reinstate a benefit that has been wholly or partly withdrawn and is awaiting MR or an appeal.

11. Help to pay council tax is also crucial at this time of acute financial pressure. We recommend that the Government should encourage Local Authorities to remove features such as the two-child policy and the self-employed claimants’ Minimum Income Floor from their local Council Tax Support/ Reduction schemes. Some have simply copied these rules automatically from DWP benefits, possibly without fully appreciating their adverse impact where claimants are struggling.

We hope that, when something like a normal life returns, the support package as outlined above, which suggests achievable and positive temporary improvements, to be introduced in response to a crisis, might prove a focus for longer-term policy discussion.

Meanwhile, we commend to the Government the above proposals to make immediate changes to complement the emergency measures already taken.

In view of the widespread public interest in the current emergency measures, we shall be releasing these proposals to the media.

Yours sincerely,

Disability Benefits Consortium”

Local help is available if you are experiencing problems with your benefits.

Granton Information Centre provides a free and confidential service. Telephone 0131 551 2459 or 552 0458 or you can email info@gic.org.uk

The office is closed to the public, but the service is very much running!

PIP claims plummet but help is at hand

New claims for PIP have plummeted by more than half since the beginning of the coronavirus crisis, the work and pensions committee was told last week.

At the committee session, Justin Tomlinson, minister for disabled people, stated: “We have seen a significant drop in the number of new claimants. We’re not totally sure why.

“But in January 51,000 new claimants in the month. At the beginning of March it was around about 12,000 a week, that’s now down to 5,000 a week as of last week.

Mr Tomlinson also stated that although there were fewer staff now available to deal with disability benefits, new claims for PIP were actually going through more quickly, partly as a result of a switch away from face-to-face assessments and partly due to a drop in the number of claims.

He said the average length of time from the beginning to end of the process has actually improved.

If you are experiencing problems with a PIP claim or need benefits advice Granton Information Centre can help. Due to the Coronavirus restrictions the office is currently closed to the public, but GIC is still operating!

Please call Monday – Friday, 9.30am – 4pm on 0131 551 2459 or 0131 552 0458 if:

•You would like to arrange a telephone appointment to discuss money, benefits, housing or debt
•You wish to discuss an existing case
•You require a foodbank referral

All messages will be returned as long as you clearly leave a telephone number for us to reach you on.

Emails will be monitored daily – our email address is info@gic.org.uk