Cash-strapped South Tyneside has the second-highest level of personal debt in England, a shock new report reveals.
Statistics show that 607 clients visited the borough’s Citizens Advice Bureau (CAB) between July and September last year, with debt-related concerns.
Concern over debt now accounts for a staggering 42 per cent of that bureau’s workload.
A new national CAB report also reveals that South Tyneside has the fourth-highest level of personal debt in England and Wales.
However, when two Welsh authorities are taken out of the equation, it emerges as the second worst debt-hit area in England – just behind Stoke-on-Trent.
Ian Thompson, chief executive of South Tyneside CAB, based at the Edinburgh Buildings in South Shields, revealed that priority debt, such as rent and Council Tax, had spiralled in recent years.
Meanwhile, advice workers are expecting a further surge in demand for the service this month as borough residents begin to count the cost of Christmas spending.
Mr Thompson revealed that debt-related problems are so great that some clients in the past have committed suicide as an escape from them.
The seriousness of the situation has led him to write a letter to every elected member on South Tyneside Council, outlining the situation and his concerns.
Mr Thompson said:
“We know there is an awful lot of debt in the borough.
“Forty two per cent of our work is working with clients with debt problems.
“That’s a staggering figure when you consider that we deal with a whole range of issues, ranging from employment to housing and much more besides.
“The sort of debt we are encountering has changed during my time with the bureau, from credit card debt and to priority debts, such as Council Tax arrears and rent arrears.
“These are life-changing, priority debts which can lead to people losing the roof over their heads.
“Unmanageable debt causes untold misery and can require the intervention of GPs for the treatment of depression.
“We have also had, as an extreme example, clients committing suicide because of the pressures they are under.
“From mid-January we are expecting a surge in the need for debt-related advice. Prior to Christmas, people tend not to think too much about debt – then the bills and credit card demands start to arrive.”
Top of CAB’s personal debt chart for England and Wales are two Welsh authorities – Denbighshire and Merthyr Tydfil.
In the North East the other worst-hit authorities are Darlington (5th), North Tyneside (8th), Gateshead (12th) and Middlesbrough (13th).
Source – Shields Gazette, 15 Jan 2015
I’m writing a book about work and am looking for people who are willing to share their experiences of Workfare or Mandatory Work Activity.
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I’d like to find out a bit more about what the work was like: What did you do? How did you feel about it? How did the workers around you react? Anonymity and discretion guaranteed.
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Who said it could never happen here? Children are starving on the streets of Britain as the Tory-led Coalition’s hate policies bite ever-more-deeply into the poor [Image: Stoke Sentinel]. British children are sifting through bins left outside houses in search of scraps of food because they are starving, it has been revealed.
But Tories and their supporters in rich London won’t have to look at them – because they are in Labour-held Stoke-on-Trent.
The Stoke Sentinel reported that “Youngsters have been searching through bins in the Hollings Street and Brocksford Street area of Fenton before eating any leftovers.”
It said, “Dozens of hungry families are referred to Fenton’s food bank for help every week.”
What’s really sad about this story is that some of the people interviewed seemed to think the problem was with the mess left behind by these children – youngsters who are, remember, so hungry that they…
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This article was written by Hilary Osborne, for The Guardian on Sunday 25th May 2014
In the first three months of this year, the charity helped 27,000 people who had fallen behind with council tax bills, a 17% increase on the same period of 2013, and one in five of those reporting debt problems had an arrears issue. The charity said the increase had come in the wake of the abolition of council tax benefit in April 2013, and its replacement with new support from local councils. Levels of help vary from council to council, and as of March this year, 244 out of 325 councils in England required all working-age households to make some contribution, regardless of income.
The first wave of changes drove up the number of council tax arrears cases Citizens Advice dealt with to the point that they overtook problems with credit cards and unsecured personal loans for the first time.
Of those contacting the charity about council tax arrears, 42% were employed and 28% unemployed. The rest were full-time carers, or similar.
Of those seeking help with debt generally, one in five had problems with an unsecured loan and the same proportion had a fuel debt issue. One in six had problems with a credit or store card and 5% were behind on a mortgage or secured loan.
Gillian Guy, chief executive of Citizens Advice, said: “Consumer debts like credit cards and personal loans have traditionally been the most common debt problems that come through our doors, but since the end of council tax benefit we’ve seen council tax arrears problems go through the roof.”
Guy said that for some households, council tax bills were the tipping point that plunged them into debt.
“Last year, more than 90,000 people came to Citizens Advice looking for help with council tax arrears as they struggle in the face of low incomes, rising prices and reduced financial support,”
“As their budgets shrink, local authorities are increasingly stretched, but they must ensure that the resources available for their local council tax support scheme are focused on those who are most in need.”
The areas with the largest proportion of clients with council tax arrears were all outside London, and include Salford near Manchester, Stoke on Trent, Rutland and Redcar & Cleveland.
Local authorities can instruct bailiffs to recover unpaid bills or apply to have payments deducted from wages.
Source – Welfare News Service, 26 May 2014