Citizens Advice in Wales reports a 19 per cent increase in debt related problems

During 2014-15 the Citizens Advice service in Wales helped more than 29,700 people with over 125,500 debt related problems, an increase of 19 per cent compared to the same period the previous year. Each person coming to the charity for help currently has an average of 4.2 debt issues.

Debt has always been one of the main problems that people seek help for from Citizens Advice. Issues relating to consumer credit remain high, but over the last few years there has been a noticeable changing trend in the nature of debt and a significant increase in the amount of people getting into debt with essential household bills.

Annual advice trends published by Citizens Advice Cymru reveal that local Citizens Advice (1) are seeing an increasing number of people seeking their help because they are finding it hard to pay their rent. Problems with rent arrears across the social and private rented sector have increased by an average of 28 per cent in 2014/15. Issues relating to rent arrears in the private rented sector have gone up 48 per cent. Worryingly this could have potentially serious consequences and may lead to people being threatened with or actually losing their home.

The service in Wales has also seen a significant increase in clients struggling to pay their council tax bills over the past twelve months. Problems with council tax arrears  have gone up 51 per cent compared with 2013/14, making it now the largest debt-related problem area. A knock on effect of this and of particular concern, is a steady increase in problems with bailiffs collecting council tax arrears. A third of  people that came to a local Citizens Advice with a problem about council tax arrears (2100) said that they had had an issue with bailiffs when collecting debts.

Fran Targett, Director Citizens Advice Cymru, said:

“Although the economy is recovering we are still seeing increasing numbers of people who are struggling to maintain a decent standard of living and finding it almost impossible to cope financially year on year.

"People are telling us that they are having to cut back on food in order to pay their rent and energy bills. Many are being forced to go further into debt to live from day to day. We are also concerned that the planned increase in interest rates or a severe cold winter could push people over the edge.

"Getting into serious debt not only has a devastating impact on the health and well-being of individuals and their families, especially children, but having to deal with the consequences such as rehousing a homeless family could have a significant financial knock on effect on local services. This being at a time when local authorities are having to deal with cuts to funding”.

The charity also highlights the impact that welfare reform is having on many people, currently the biggest problem area which people seek help around (39 per cent of all problems), including some of the most vulnerable in society. Over half the people who sought help in the past year relating to benefits and tax credits (54 per cent) were disabled or had a long term health condition.

Cyngor ar Bopeth yng Nghymru yn ymdrin â 19 y cant yn fwy o broblemau dyledion

Yn ystod 2014-15, fe helpodd Cyngor ar Bopeth Cymru fwy na 29,700 o bobl gyda thros 125,000 o broblemau dyledion –19 y cant yn uwch o gymharu â’r un cyfnod y flwyddyn flaenorol. Mae gan bob unigolyn sy’n gofyn am gymorth 4.2 o broblemau dyledion ar gyfartaledd.

Problemau dyledion fu un o’r prif resymau dros gysylltu â Cyngor ar Bopeth erioed. Mae problemau gyda chredyd defnyddwyr yn niferus o hyd, ond dros yr ychydig flynyddoedd diwethaf, mae natur y ddyled wedi newid a gwelwyd cynnydd sylweddol yn y niferoedd sy’n mynd i ddyled gyda biliau hanfodol y cartref.

Mae tueddiadau cyngor blynyddol a gyhoeddwyd gan Cyngor ar Bopeth Cymru yn dangos bod mwy a mwy o bobl yn troi at swyddfeydd lleol Cyngor ar Bopeth (1) oherwydd trafferthion talu rhent. Mae problemau ôl-ddyledion rhent ar draws y sector rhentu cymdeithasol a phreifat wedi cynyddu 28 y cant ar gyfartaledd yn 2014/15. Bu 48 y cant o gynnydd mewn problemau’n ymwneud ag ôl-ddyledion rhent yn y sector rhentu preifat. Gall goblygiadau hynny fod yn ddifrifol dros ben, gyda phobl naill ai mewn perygl o golli neu yn colli eu cartref.

Hefyd, mae’r gwasanaeth yng Nghymru yn ymdrin â chynnydd sylweddol mewn cleientiaid sydd wedi cael trafferth talu bili y dreth gyngor dros y deuddeg mis diwethaf. Mae problemau gydag ôl-ddyledion y dreth gyngor wedi cynyddu 51 y cant ers 2013/14, sy’n golygu mai dyma’r maes mwyaf problemus o ran dyledion bellach. Canlyniad hynny, a thestun pryder pellach, yw’r cynnydd graddol gyda phroblemau beilïaid yn casglu ôl-ddyledion y dreth gyngor. Dywedodd traean o’r bobl ddaeth i swyddfa leol Cyngor ar Bopeth gyda phroblem yn ymwneud ag ôl-ddyledion y dreth gyngor (2100) fod ganddynt broblem gyda beilïaid sy’n casglu dyledion.

Meddai Fran Targett, Cyfarwyddwr Cyngor ar Bopeth Cymru:

“Er bod yr economi yn gwella, rydym yn dal i weld mwy a mwy o bobl sy’n cael trafferth cynnal safon byw dderbyniol a phrin yn gallu ymdopi’n ariannol o flwyddyn i flwyddyn.

“Mae pobl yn dweud wrthym eu bod yn gorfod cwtogi ar fwyd er mwyn talu’r rhent a biliau ynni. Mae llawer yn cael eu gorfodi i fwy o dwll ariannol er mwyn byw o ddydd i ddydd. Rydym yn poeni hefyd y gallai’r cynnydd arfaethedig mewn cyfraddau llog neu aeaf caled wthio pobl dros y dibyn.

"Mae mynd i ddyled ddifrifol nid yn unig yn cael effaith enbyd ar iechyd a lles unigolion ond ar eu teuluoedd hefyd, yn enwedig plant. Gallai gorfod ymateb i oblygiadau hynny, fel ailgartrefu teulu digartref, gael cryn effaith ariannol ar wasanaethau lleol hefyd. Hyn oll ar adeg pan mae awdurdodau lleol yn gorfod ymdopi â thoriadau i’w cyllid.”

Mae’r elusen yn pwysleisio effaith diwygio’r wladwriaeth les ar bob math o bobl hefyd, sef y broblem fwyaf y mae pobl angen cymorth yn ei chylch (39 y cant o’r holl broblemau) gan gynnwys rhai o aelodau mwyaf agored i niwed ein cymdeithas. Roedd dros hanner y rhai a ofynnodd am gymorth ar fudd-daliadau a chredydau treth (54 y cant) yn y flwyddyn ddiwethaf naill ai’n anabl neu â chyflwr iechyd hirdymor.

Yn ôl yr elusen, mae tystiolaeth yn tystio i werth cyngor annibynnol trwy fod yn gefn i bobl ar adegau anodd a lleihau’r pwysau ar wasanaethau lleol. Mae Cyngor ar Bopeth yn darparu gwasanaeth am ddim sy’n helpu pobl i reoli eu dyledion a phroblemau eraill pan fo bywyd yn boen. Mae Cyngor ar Bopeth yn helpu i ddatrys 2 o bob 3 problem sydd gan gleientiaid. (3)

The charity notes the evidence demonstrates the value of independent advice, both in supporting people in difficult times and reducing pressures on local services. Citizens Advice provides a free service that helps people to manage their debts and other problems in times of worry. Citizens Advice helps solve 2 in every 3 client problems. (3)

Notes to editors

1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service 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 see the Citizens Advice website.
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. To get advice online or find your local bureau in England and Wales, visit citizensadvice.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.