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Record numbers seek help with debt and benefit problems

24 February 2010

The continuing impact of the recession is driving record numbers of people to seek help from Citizens Advice Bureaux with debt, benefit, employment and housing problems. Since the start of the recession CAB advisers have helped at least 3.25 million people with 11 million problems.*

New figures show Citizens Advice Bureaux in England and Wales currently dealing with 9,500 new debt problems and 8,200 new benefit problems every working day.

Debt and benefit issues combined now account for over 60% of the CAB workload.  Fuelled by the impact of the recession, enquiries in these areas are currently growing at an annual rate of 24%, with CAB advisers handling 2.27 million debt problems and almost 2 million benefits problems in 2009.

1 October – 31 December 2009

Quarterly figures published today show that the total problem count for the three months October – December 2009 reached 1.7 million, up 20% on the same period the previous year.

Debt problems shot up 24% and enquiries about welfare benefits leapt by 22% compared with the same quarter the year before. This comes on top of earlier sharp increases seen since the start of the recession in April 2008.

The latest figures suggest that many people are still struggling to keep their heads above water and pay essential household bills, relying on overdrafts to meet day-to-day living costs. This is borne out by continuing steep increases in:

Enquiries about job seekers allowance were up by a third (33%) and mortgage arrears problems were up 14%, but in both cases the rate of increase has slowed after peaking in the first three months of 2009.

Redundancy-related problems went down (by 30%) for the first time in seven quarters, the rate of increase having peaked in the first three months of 2009, but were still up by 38% for the whole of 2009 compared with 2008.

Citizens Advice Chief Executive David Harker said:

“These figures give a stark insight into the human cost of the recession, coming as they do on top of what were already record-breaking enquiry figures for the previous three months.

“We may officially be in recovery, but for many people the damage done by the economic downturn is long-lasting and far from over. Even more people are now worried about the further pressures on their household budgets from rising prices and exceptionally high winter fuel bills.

“The demand for CAB services is at an all time high and our advisers have never been so busy. Our frontline advice services will continue to play a vital role in helping millions of people weather the worst effects of the recession for as long as it takes.”

ENDS

Enquiries to Citizens Advice Bureaux in England and Wales

Enquiry area1 October – 31 December 20081 October – 31 December 2009Percentage increase
Debt456,649567,24124%
Benefits and tax credits403,095489,96022%
Fuel debts19,46625,74832%
Water debts14,72418,71527%
Phone debts14,49218,80030%
Rent arrears to private landlords4.5925,74125%
Council tax arrears33,00738,85818%
Overdrafts34,88443,75425%
Mortgage arrears23,20126,46614%
Jobseekers Allowance27,16836,16433%
Redundancy23,62516,485- 30% (decrease)
Total enquiries1,409,0951,686,87520%

Notes to editors:

    *1 April 2008 to 31 December 2009

  1. The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales www.citizensadvice.org.uk
    For more information and 2008/9 service statistics see Introduction to the service
    For 2008/9 service highlights see the Citizens Advice service impact report
    For 2008/9 social policy campaigning highlights see the Citizens Advice social policy impact report
  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. Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
  4. Advice and information www.adviceguide.org.uk
  5. Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
  6. Follow Citizens Advice on Twitter: twitter.com/CitizensAdvice
  7. Subscribe to Citizens Advice press releases via RSS news feed: www.citizensadvice.org.uk/pressoffice