Renfrewshire boosts debt advice to combat credit crunch

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Renfrewshire Council will introduce over £200,000 in additional money advice services to help people face problems caused by the credit crunch.

The investment will deliver a £214,000 year-long funding package to boost several council and voluntary sector money advice services.

The move comes after debt advisors saw a “sharp increase” in the number of people coming forward with financial problems linked to rising bills and interest payments.

“Renfrewshire is no different to anywhere else in the difficulties people are facing in the current economic downturn,” said Council Leader Derek Mackay.

“What we want to do is give people, particularly vulnerable groups, the best advice and support that we can to prevent financial problems or stop these problems escalating.”

Renfrewshire Council will target an extra £214,000 into supporting advice and information services. These include out of hours debt advice, extra support for Renfrewshire Citizens Advice Bureau, dedicated financial inclusion advice for vulnerable groups, additional community-based debt advice sessions and money advice sessions based in GP surgeries or health centres.

“Renfrewshire already has a strong track record in supporting people in gaining access to benefits and helping them address financial problems.

Councillor Mackay said: “Our Financial Inclusion Strategy helped 3,640 people last year, led to £4.8m benefits being claimed, generated £3.4m income and tax credits and brought £13.7m of personal debt under management.

“Those existing advice and information services have made a real difference to people’s lives. We want to build on that proven track record and expertise by increasing the availability of and access to money advice.”

That advice will cover a range of income, benefit, housing and fuel poverty issues.

Councillor Mackay added: “It’s been a particular strength of Renfrewshire’s Financial Inclusion Strategy that the council and our partners in the public and voluntary sectors have been able to give integrated support. If people have problems of low income they may also have fuel poverty or employment issues that need resolving as well.”

Among the evidence of the impact of the credit crunch in Renfrewshire - is a 9 per cent increase in enquiries to the council’s Advice Works service in Johnstone and a 72 per cent increase in debt cases being handled by Renfrewshire Citizens Advice Bureau.

There has also been a rise in the number of people with “complex and multiple debt problems.”

The council is hoping that extending the range of debt advice will particularly help vulnerable groups including the elderly, children living in low income households, those on benefits or low paid employment, and people facing difficulties in paying their fuel bills.

Press release: Friday 31 October 2008