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Citizens Advice response to Pre-Budget Report

9 December 2009

Commenting on the £5 million extra for Citizens Advice Bureaux, David Harker, Chief Executive of Citizens Advice, said:

“We are delighted that the Chancellor has agreed an extension to the extra £10 million funding he announced in the 2008 Pre Budget Report to enable local bureaux to open their doors for longer. By March 2010 – when the initial funding would have ended – we will have been able to see an extra 335,000 clients across England and Wales, a clear success by any measure.

“The initial boost to our funding announced in 2008 was about meeting the extra demand for advice caused by the recession. Even before the recession began there was considerable unmet need for our services, and rising unemployment since has seen that demand increase greatly. The £5 million of new funding announced today will allow the Additional Hours of Advice project - as it is known - to be extended into the new financial year and will enable us to help significantly more people.

“I am very pleased, therefore, that the Government has recognised the increased demands on the Citizens Advice service by extending this vital funding and I very much hope that the Government will continue to look favorably on the project.“

On Working Tax Credit Eligibility, David added:  

“Citizens Advice welcomes the increased eligibility for working tax credit for older people - the reduced hours threshold will help people work in ways that suit their situation, and maintains their financial stability.

“We welcome the long-awaited decision by Government to offset overpayments arising from late reporting of relationship changes, against money to which they would have been entitled if they had reported the change on time. This will make a real difference to many families on low-incomes in difficult circumstances.

“We are disappointed, however, that the Government have not agreed to write off other tax credit overpayments from the first years of the system’s operation, as a way of reducing debt for the less well-off.. At that time the system suffered from acute administrative problems, and we estimate that more than 1 million families are still struggling to repay tax credits that were overpaid as far back as 2003/04.”

On Support for Mortgage Interest, David said:

“We welcome the 2009 Pre-Budget Report announcement that the Department of Work and Pensions will extend the temporary freezing of the standard rate for interest used to calculate SMI for a further six months, and that when the freeze ends, the Government intends to move towards a fairer, more affordable approach, that more closely reflects mortgage interest rates, including the the higher interest rates charged by sub-prime lenders.”

On Poverty, he said:

“At a time when the Citizens Advice service has seen a 45% increase in fuel debt problems in the first half of 2009/10, we are pleased that the Government has acted to tackle fuel poverty through providing extra resources for vulnerable households by helping 75,000 households through Warm Front and from the energy companies to provide one million more with discounts on their energy bills.

“Whilst we welcome these announcements, we are concerned that the Government will not be able to meet its aims to halve child poverty an eradicate fuel poverty by 2010 without further action in the next Budget."

And on Free School Meals and Pensioners, David added:

“We are pleased to see the Chancellor's decision to extend free school meals to more children of families on low incomes, and to see that pensioners will be protected by the Chancellor's measures on state pension and pension credit.”

Notes to editors

  1. 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 www.citizensadvice.org.uk
  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. For online advice and information see New windowwww.adviceguide.org.uk
  3. 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: www.citizensadvice.org.uk/press_statistics
  4. 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).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.