Tag: rising bills

Cost of living crisis: Help is available for those who need it, says FCA

The Financial Conduct Authority (FCA) has reminded borrowers they can get help from their lenders if they are struggling to keep up with payments, as it found the number of people struggling to meet bills and credit repayments has risen by 3.1m since May 2022 (10.9m, compared to 7.8m in May 2022).  

The number of adults who missed bills or loan payments in at least three of the last six months has also gone up by 1.4 million, from 4.2 million to 5.6 million over the same period.  

The FCA has repeatedly reminded firms of the importance of supporting their customers and working with them to solve problems with payment, including by writing to industry bosses to make sure they are aware of the regulator’s expectations.   

Where firms haven’t supported their customers properly, the FCA has told them to make changes. It reminded 3,500 lenders of how they should be supporting borrowers in financial difficulty and told 32 lenders to make changes to the way they treat customers. This work has led to £29 million in compensation being secured for over 80,000 customers.    

As part of its Financial Lives survey, the FCA found that the cost of living is having an impact on people’s mental wellbeing. Around half of UK adults, or 28.4 million people, in January 2023 felt more anxious or stressed due to the rising cost of living than six months earlier.    

Sheldon Mills, Executive Director of Consumers and Competition said:  ‘Our research highlights the real impact the rising cost of living is having on people’s ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice.  

‘If you’re concerned about your finances, you do not need to worry alone. We’ve told lenders that they should provide support tailored to your needs. And, if you find yourself in debt or want to know more about how to manage your finances, free expert advice is available.  

‘We will continue to act quickly to make sure financial firms help their customers who are facing financial difficulty or are worried they might be soon.’    

The support needed to deal with the rising cost of living goes beyond what is provided by the financial services sector. As a result, the FCA continues to work with other regulators and debt organisations to drive better coordination and help make sure customers are treated fairly and supported if they get into financial difficulty.  

The FCA will also be introducing the Consumer Duty in the summer. The Duty will be the driving force behind its consumer protection work, as it will require firms to act to deliver good outcomes for consumers and make sure that they are properly supported while using a financial product or service. 

Research: Financial Lives January 2023: Consumer experience of the rising cost of living – the burden of bills and ways to get support

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Additional funding for energy advice in face of rising bills

£1.2 million to ensure households and businesses get support

Immediate funding is being awarded to key energy advice organisations to make sure energy customers can access crucial support and advice to deal with rising energy bills and heating costs.

More than £1.2 million will be distributed to help key agencies, including Advice Direct Scotland, Home Energy Scotland and Citizen’s Advice Scotland, reach more people who need help.

The funding will also support a training programme for staff from third sector organisations to expand the reach of expert advice.

The Scottish Government committed to providing additional support to advice agencies at the Scottish Energy Summit hosted by the First Minister on Tuesday 23 August, at which a series of further actions to mitigate the energy price rises were agreed with energy companies and advice organisations.

The additional funding announced today is on top of the Scottish Government’s existing investment in free income, welfare and debt advice services, including support to Money Advice Scotland and the Welfare Advice and Health Partnerships Programme.

Minister for Zero Carbon Buildings and Tenants Rights Patrick Harvie visited Home Energy Scotland’s Edinburgh offices to speak to advisors who have been supporting households.

Mr Harvie said: “We know that this is an incredibly unsettling time for all households and businesses and it is imperative that those worried about or struggling with heating their homes access the information and support they need to reduce their energy bills.

“A further energy price cap increase announcement will only serve to escalate concerns, making the need for impartial, expert advice and support even more vital.

“The Scottish Government is clear that energy customers simply cannot be expected to carry the burden of further price rises in October, and that the UK Government must now commit to freeze the cap for all households and to support energy companies to deliver that.

“In the meantime, the cost crisis is already hitting energy customers hard and the Scottish Government will continue to do everything within our means to support the people of Scotland through it.

“This funding will ensure that expert advisors across the country stand ready to provide crucial support and guidance to those understandably worried about their energy bills. I would urge everyone who has concerns to access these services and get the support they need.”

A total of £1.268 million will be distributed across energy advice services as follows:

  • £220,000 to Advice Direct Scotland to fund new staff in its contact centres for consumers, including vulnerable consumers, in need of help.
  • £50,000 to Advice Direct Scotland to create a user-friendly online digital journey for customers
  • £220,000 to Citizen’s Advice Scotland to enhance capacity in their local advice bureaus enabling them to provide advice on both energy debt and energy efficiency measures.
  • £280,000 to expand the Home Energy Scotland advice Service
  • £198,000 for Home Energy Scotland recruits who will provide training to staff from third sector organisations on energy efficiency, which will see around 200 local community groups and organisations benefit
  • £300,000 to enhance support for businesses through Business Energy Scotland

The Scottish Government estimates that 906,000 or 36% of all households will be in fuel poverty in October 2022, based on an Ofgem price cap of £2,800 and taking into account previously announced government mitigations.

The Scottish Government has allocated almost £3 billion in this financial year that will help households face the increased cost of living. This includes the provision of services and financial support not available elsewhere in the UK that is helping to reduce everyday costs and increase incomes.

It also includes £10 million to continue the Fuel Insecurity Fund which helps households at risk of severely rationing their energy use, or self-disconnecting entirely. This includes direct support for households using any tariff or fuel type, and is delivered via trusted third sector partners the Fuel Bank Foundation, Advice Direct Scotland and the Scottish Federation of Housing Associations.

Scots urged to seek financial support and access the benefits they are entitled to

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.