Latest CAB figures show increasing demand for services
10 June 2009
Citizens Advice Bureaux in England and Wales have seen large and rising increases in debt, employment and benefits related enquiries over the last year, the annual Citizens Advice parliamentary reception will be told today.
The new figures, out today, reveal that from April 2008-March 2009 the Citizens Advice service:
- advised on 6 million new problems, a 9% increase compared to 2007/8
- saw nearly 2 million clients
- had 8.8 million visits to its advice website www.adviceguide.org.uk
Debt remained the biggest volume of enquiries for the service with 1.93 million new debt problems advised on by bureaux, an 11% increase on 2007/8. Total employment related problems saw a 17% increase compared to last year and benefits enquiries were up 13%. Over the year the service enquiries saw:
- 114% increase relating to redundancy (83,024 new enquiries in 2008/9 compared to 38,745 in 2007/8)
- 61% increase relating to Job Seekers Allowance (109,407 new enquiries in 2008/9 compared to 68,052 in 2007/8)
- 49% increase relating to mortgage and secured loan arrears (95,342 new enquiries in 2008/9 compared to 64,053 in 2007/8)
- 24% increase relating to bankruptcy (137,406 new enquiries in 2008/9 compared to 110,819 in 2007/8)
- 19% increase relating to fuel debt (82,891 new enquiries in 2008/9 compared to 69,378 in 2007/8)
- 15% increase relating to Council Tax arrears (137,551 new enquiries in 2008/9 compared to 119,795 in 2007/8)
Enquiry figures showed a sharp spike at the start of 2009, with debt enquiries 21% higher in Jan – Mar 2009 compared to Jan – March 2008 and enquiries about redundancy 179% higher than the same period last year.
A recent profile of CAB clients revealed that CAB debt clients owe an average of £16,971, an amount it would take an average of 93 years to pay off at a rate they can afford. The most common reasons for debt were low income, over-commitment, illness or disability and job loss. But irresponsible lending, poor financial skills and increases in the cost of living had also played a significant part in people’s debt problems.
Speaking at the reception, Citizens Advice Chief Executive David Harker will also highlight how the service has been able to meet increasing demand thanks to a £10million boost from HM Treasury earlier this year.
The extra funding, announced in the Pre Budget Report, has allowed 338 bureaux, 85% of the bureau network, to open for longer for 14 months from February 2009 to help meet increasing demand as a result of the recession. The extra capacity will allow bureaux to see a minimum of 335,000 extra people. 16% of the additional hours of advice are being provided before 9am and after 5pm.
Citizens Advice Chief Executive David Harker said:
“These new figures show the human impact of the recession as more people are coming to the Citizens Advice service for help. In particular we are seeing an enormous rise in the number of people turning to us for help because they have lost their job, or are struggling with debts or having problems keeping up with their mortgages.
“A recent funding boost has enabled us to see more clients, and train more advisers but we are expecting to see many more people struggling with severe debt and related problems as the recession continues to take its toll.
“It is therefore absolutely vital that all lenders and creditors treat people in arrears fairly and sympathetically, negotiate with borrowers in trouble and do everything they can to help ease their debt problems and avoid adding to them.”
David Harker will also today announce the winner of the third annual Citizens Advice Parliamentarian of the Year award, selected as a result of a nomination by their local Citizens Advice Bureau for working closely with the Citizens Advice service both in Westminster and in their constituency, to deliver real change. The winner in 2007 was Treasury Select Committee Chairman John McFall MP and in 2008 Liberal Democrat Shadow Chancellor Vince Cable MP.
Advice statistics
| Advice category | 2007/08 total | 2008/09 total | Annual % change |
| Benefits and Tax Credits | 1,515,293 | 1,710,581 | 13% |
| Consumer Goods and Services | 130,098 | 122,623 | -6% |
| Debt | 1,735,882 | 1,926,723 | 11% |
| Education | 22,094 | 23,155 | 5% |
| Employment | 475,512 | 554,509 | 17% |
| Financial Products and Services | 115,685 | 118,019 | 2% |
| Health and Community Care | 73,689 | 69,162 | -6% |
| Housing | 398,221 | 408,985 | 3% |
| Immigration, Asylum and Nationality | 79,343 | 80,726 | 2% |
| Legal | 274,156 | 264,143 | -4% |
| Other | 63,031 | 73,839 | 17% |
| Relationships and Family | 293,964 | 288,690 | -2% |
| Signposting and Referral | 174,648 | 174,267 | 0% |
| Tax | 47,588 | 48,840 | 3% |
| Travel, Transport and Holidays | 38,852 | 42,209 | 9% |
| Utilities and Communications | 95,345 | 98,477 | 3% |
| Totals | 5,533,400 | 6,004,948 | 9% |
| Advice topic | Q1 2007/08 | Q2 2007/08 | Q3 2007/08 | Q4 2007/08 | Q1 2008/09 | Q2 2008/09 | Q3 2008/09 | Q4 2008/09 | Total 2008/09 | Annual change |
| Mortgage and secured loan arrears | 13,942 | 14,349 | 16,402 | 19,360 | 20,046 | 22,063 | 23,201 | 30,032 | 95,342 | 49% |
| Fuel debts | 17,825 | 16,986 | 16,687 | 17,880 | 18,183 | 19,076 | 19,466 | 26,166 | 82,891 | 19% |
| Credit, store and charge card debts | 90,452 | 83,881 | 82,684 | 93,140 | 89,045 | 90,298 | 89,513 | 111,877 | 380,733 | 9% |
| Unsecured personal loan debts | 66,992 | 61,798 | 62,651 | 70,600 | 66,319 | 68,628 | 67,423 | 87,149 | 289,519 | 10% |
| Bankruptcy | 27,512 | 26,565 | 25,698 | 31,045 | 31,075 | 32,978 | 32,764 | 40,589 | 137,406 | 24% |
| Council tax, community charge arrears | 28,475 | 27,988 | 29,639 | 33,693 | 31,733 | 32,614 | 33,007 | 40,197 | 137,551 | 15% |
| Dismissal | 19,548 | 20,175 | 19,514 | 21,063 | 21,311 | 23,183 | 23,274 | 26,484 | 94,252 | 17% |
| Redundancy | 9,331 | 9,543 | 8,971 | 10,910 | 12,667 | 16,249 | 23,625 | 30,483 | 83,024 | 114% |
| Jobseekers Allowance | 16,821 | 17,140 | 16,076 | 18,015 | 18,547 | 22,183 | 27,168 | 41,509 | 109,407 | 61% |
Notes to editors
- The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, 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 information in England and Wales see citizensadvice.org.uk
- 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. For online advice and information see adviceguide.org.uk
- Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: citizensadvice.org.uk/press_statistics
- Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
- Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.
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