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Spending Review: Make life simpler and fairer not harder for most vulnerable, urges Citizens Advice

25 August 2010

In its submission to the Government’s Spending Review, national problem solving charity Citizens Advice is urging the government to focus on tackling unnecessary and costly bureaucracy and poor standards of service rather than resort to hitting the vulnerable the hardest through rash spending cuts. Unnecessary complications hinder rather than help people address everyday problems argues the charity, whereas early help for people experiencing problems is considerably cheaper than the exacerbated costs of trying to pick up the pieces further down the line.

The charity’s submission is based on insight from the 7.1 million problems brought to bureaux in England and Wales by 2.1million clients last year (April 2009-March 2010). It is calling for a range of relatively low cost ‘quick win’ solutions and preventative measures to reduce errors and delays and simplify public services, saving public money in the medium to long term.

In a poll of CAB advisers and clients, 81% said their top priority was a simpler benefits system. The submission argues that the complexity of the current benefits system causes distress for customers. It also causes considerable extra expense for the government when poor quality of service, advice and decisions result in people having to have frequent contacts with different parts of the system, often having to seek additional advice from third parties. In 2009/10 nearly 30% of all enquiries received by the CAB service related to benefits and around half of those were about eligibility, entitlement and the claims process.

The charity adds that poor administration of benefits exacerbates health problems which are a major cost in the economy in terms of increased treatment costs, productivity losses, reduced tax revenue and higher welfare payments. Citizens Advice argues that the system needs to be fairer and easier for people to understand their entitlement and how to claim. It is urging the Treasury to recognise the importance of a comprehensive reform of the tax, tax credits and benefits systems. Failing that, it says, there are numerous changes that could be made to improve the system.

Consumer problems are also costing the economy dearly, to the tune of £6.6billion a year according to OFT estimates.¹ Better consumer regulation will be a cost effective way to tackle rogues and curb unnecessary costs argues Citizens Advice. The charity is also urging the government to keep its eye on mortgage arrears and the debt problems of homeowners to avoid a resurgence of the credit fuelled irresponsible lending and borrowing of the early 1990’s. While early intervention to help homeowners stay in their homes, avoids the costs associated with mortgage repossession which are estimated to be £16,000.

Citizens Advice Chief Executive Gillian Guy said:

“We appreciate that in the current economic context the government is committed to significantly reducing public expenditure but we welcome the fact that this spending review is seeking to involve the public and the voluntary sector. Problem solving is at the heart of what we do at Citizens Advice. Whether it is in our one-to-one advice work with millions of people in local communities, or in the analysis of our client evidence at a national level, our job is to find workable solutions to the difficulties people face in their everyday lives. We are therefore urging the Chancellor not to abandon those most in need, the people we advise every day. Problems like debt, employment disputes, housing problems, discrimination, hate and gender violence can all spiral if left unaddressed, resulting in more costly solutions as well as mental and physical symptoms, long-term deterioration of health and the associated impact on the economy.

“If it is serious about fairness and responsibility as well as growth, the government must use the opportunity of this Spending Review to create simpler, more efficient ways of doing things and as a result make life simpler and fairer for people relying on public services. We think that approach could reduce future public expenditure and strains on the benefit system, local authorities, health and legal services.

“We also have a role to play in delivering solutions. Our submission gives examples of practical and innovative ways that we believe we could help, working with the government and with the government’s continued support for our service, by getting information and advice to more people, and earlier. Citizens Advice stands ready to help the government to make life simpler and fairer for people who rely on public services."

These are just some of the cost saving initiatives laid out by the charity all aimed at making life simpler and fairer for people:

Department of Business, Innovation and Skills:

Department of Communities and Local Government:

Department of Energy and Climate Change:

Department of Health:

Department of Work and Pensions and HM Revenue and Customs:

Home Office and the Government Equalities Office:

Ministry of Justice:



The full submissions are available on the Citizens Advice website: Spending Review submissions

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.