WIREDGOV

During 2014-15 the Citizens Advice service in Wales helped more than 29,700 people with over 125,500 debt related problems, an increase of 19 per cent compared to the same period the previous year.

Each person coming to the charity for help currently has an average of 4.2 debt issues.

Debt has always been one of the main problems that people seek help for from Citizens Advice. Issues relating to consumer credit remain high, but over the last few years there has been a noticeable changing trend in the nature of debt and a significant increase in the amount of people getting into debt with essential household bills.

Annual advice trends published by Citizens Advice Cymru reveal that local Citizens Advice (1) are seeing an increasing number of people seeking their help because they are finding it hard to pay their rent. Problems with rent arrears across the social and private rented sector have increased by an average of 28 per cent in 2014/15. Issues relating to rent arrears in the private rented sector have gone up 48 per cent. Worryingly this could have potentially serious consequences and may lead to people being threatened with or actually losing their home.

The service in Wales has also seen a significant increase in clients struggling to pay their council tax bills over the past twelve months. Problems with council tax arrears  have gone up 51 per cent compared with 2013/14, making it now the largest debt-related problem area. A knock on effect of this and of particular concern, is a steady increase in problems with bailiffs collecting council tax arrears. A third of  people that came to a local Citizens Advice with a problem about council tax arrears (2100) said that they had had an issue with bailiffs when collecting debts.

Fran Targett, Director Citizens Advice Cymru, said:

“Although the economy is recovering we are still seeing increasing numbers of people who are struggling to maintain a decent standard of living and finding it almost impossible to cope financially year on year.

"People are telling us that they are having to cut back on food in order to pay their rent and energy bills. Many are being forced to go further into debt to live from day to day. We are also concerned that the planned increase in interest rates or a severe cold winter could push people over the edge.

"Getting into serious debt not only has a devastating impact on the health and well-being of individuals and their families, especially children, but having to deal with the consequences such as rehousing a homeless family could have a significant financial knock on effect on local services. This being at a time when local authorities are having to deal with cuts to funding”.

The charity also highlights the impact that welfare reform is having on many people, currently the biggest problem area which people seek help around (39 per cent of all problems), including some of the most vulnerable in society. Over half the people who sought help in the past year relating to benefits and tax credits (54 per cent) were disabled or had a long term health condition.

The charity notes the evidence demonstrates the value of independent advice, both in supporting people in difficult times and reducing pressures on local services. Citizens Advice provides a free service that helps people to manage their debts and other problems in times of worry. Citizens Advice helps solve 2 in every 3 client problems. (3)

Notes to editors

1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.

2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

3. To get advice online or find your local bureau in England and Wales, visit citizensadvice.org.uk

4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.

5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.