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Debt Charity Warns of Council Tax Emergency

More clients in Scotland are in debt because of reductions in income or benefits

9 April, 2019

In its report Scotland in the Red released today, StepChange Debt Charity Scotland reveals that thousands of people in Scotland are struggling with essential household bills – especially Council Tax.

The charity was contacted by over 30,000 people last year seeking debt help, across every constituency in Scotland. Scotland in the Red reveals that in January – December 2018:

  • StepChange is seeing more clients in Scotland with Council Tax arrears. In 2018, 46% of clients had Council Tax arrears with an average value of £2,017.
  • The average amount of money clients had left over after meeting housing costs, paying to heat their homes and paying Council Tax was just £12.64 a month.
  • More clients in Scotland are falling behind their household bills. Nearly 1 in 5 clients were behind on their electricity bill, a 4% jump on 2017. They owed an average of £826, a 10% increase in just one year.
  • More clients in Scotland are in debt because of reductions in income or benefits. In 2018 25% of clients said that a reduction in income or benefits was the reason for their debt, an increase of 7% in just one year.

Commenting on the findings, Sharon Bell, Head of StepChange Debt Charity Scotland said:

"The vast majority of StepChange clients are in problem debt due to circumstances they could not have prevented or planned for such as unemployment, ill-health or reductions in income. I am increasingly alarmed by the increases in the proportion of our clients who are struggling with household bills, particularly Council Tax. Our research shows that our clients in Scotland are significantly more likely to have Council Tax arrears compared to elsewhere in the UK.

"We are seeing a record level of demand for help with problem debt with over a third of our clients having an additional vulnerability, such as illness. We need more signposting to free debt advice, as the earlier someone gets debt advice the greater their options may be and the less harm they could experience."

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Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

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