Public Debt Crisis

Aberlour’s recent report and calls to alleviate high levels of public debt and arrears to public bodies faced by low-income families has been amplified by The Robertson Trust.

The report which Aberlour released last month shows that more than half of families (55%) with children in Scotland receiving Universal Credit are having their incomes reduced by the DWP to pay off these debts. This equate to an average of 10% of the monthly income (£80) being deducted from monthly incomes.

Research, commissioned by the charity and conducted by Professor Morag Treanor from the Institute of Social Policy, Housing, Equalities Research (I-SPHERE) at Heriot-Watt University also found that more than a quarter (27%) of low-income families in Scotland in receipt of Universal Credit have multiple deductions by the DWP from their monthly income to cover debts to public bodies. Read the full report here.

The Robertson Trust, one of Scotland’s largest independent funders, has subsequently published new research which Aberlour’s research and findings contributed to. The Robertson Trust’s new report also shows that many low-income families are being pushed into debt and arrears by the public bodies meant to be helping them through the cost-of-living emergency.

The Robertson Trust is calling to tackle ‘debt crisis’ facing low-income families behind on bills to public bodies and highlights

• Over one in ten (12%) of the lowest-income households are behind on council tax bills, compared to one in a hundred for the highest income.
• More than half of households (51%) who are behind on council tax are having to cut back on food to save money. This compares to one in three (36%) lowest income and around one in five (18%) of all households.
• More than one in three (37%) of households behind on their council tax have had to borrow from friends and family due to their debt levels compared to one in ten (9%) of all households.
• With increases in council tax likely at the draft Budget on Thurs (15th Dec), the Scottish Government must act to take greater numbers of low-income families out of paying council tax – ‘There’s little point charging tax, fees and charges we know families simply can’t afford. It’s wrong in practice and wrong in principle.’

Read The Robertson Trust full release here