With cost of living going up, many people may find themselves in a situation where they are struggling to make ends meet through no fault of their own.
In recent months we have seen hikes in gas and electricity prices, petrol has spiked, council tax has increased, there has been a National Insurance rise and inflation hit a 30-year-high of seven per cent.
Lynne Kerr, from Renfrewshire Council’s advice service Advice Works, has some helpful advice on things you can do right now to support you family and your pocket.
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She explained: “Many people who have been successfully managing to pay bills on time, buy food and essential items are now finding that they don’t have enough money in their pockets.
“Many people have told us they have received a letter or email from their energy supplier advising that their direct debit is increasing automatically, and they are now worried that they won’t have enough money to pay for this and other things they need. They are worried that they aren’t going to be able to cope financially.
“We are also seeing more people calling us to check if they are entitled to any benefits so they can reduce their outgoings and maximise their income, and people with pre-payment meters who are now seeing that their credit is being used faster and are worried about how they are going to afford to top up again.”
Here, Lynne answers some important questions you may have.
If someone is struggling to pay their bills or buy food and essential, what should they do?
Lynne says: “Get advice as soon as you can. Our team at Advice Works can offer advice on budgeting, which could be as simple as setting out an income and expenditure list as often people don’t know or realise what they’re spending on small items and how it all adds up.
“There are also comparison websites to look for the best deals for mobile phone contracts, broadband, TV packages and insurance. Many suppliers have discretion to reduce the charges or offer discounts if you choose to take different services together.”
If someone can no longer pay their bills or buy food and essentials, what should they do?
“Seek advice immediately. There is no shame in looking for help, and it can relieve the pressure simply to know that you are still in control and that there are solutions available. The first step is to make sure you are receiving everything you’re entitled to. If you’re in a crisis situation then applying for a Crisis Grant or a food voucher could help in the short term. It will give you a bit of breathing space”, she advises.
If someone is worried about their future finances, what should they do?
“The earlier you can get advice, the better prepared you will be to cope with changes in future and make any changes they can. You can start to look at energy saving tips, such as turning all appliances off at the switch and not leaving on standby or changing to energy saving bulbs.
“You can buy a couple of extra tins or packets of food each week, something that you can afford to do now so that you have reserves if there are unexpected expenses in the future.”
If someone has gone into debt, what should they do?
“You should speak an adviser from the council’s advice services, Advice Works, or Renfrewshire Citizens Advice Bureau as soon as you can. An advisor can give information on debt solutions that are available and relevant to the person. This can be contacting creditors on your behalf and asking for reduced payments for a short period of time, requesting a payment break or moratorium, or more formal processes such as the Debt Arrangement Scheme or Bankruptcy. The advice will be tailored to each individual’s circumstances.”
When should people get help?
“As soon you realise that you’re going to have difficulty, either now or in the future, you should speak to an adviser. The earlier advice is sought then the more options are available, and it will relieve the pressure on you.”
Why should people get a benefit check?
“The benefits system is complex and changes often. In Scotland, we have a number of new benefits from Social Security Scotland and many people aren’t aware that they may qualify now. Changes in circumstances, including children moving out of home, working hours changing and income changing, may all mean that the person may qualify when they didn’t before.”
What is the one thing people can do to support themselves right now?
“The best thing people can do is to be aware of their finances, how much is coming in and going out each week or month, and to not be afraid to talk about their money. It’s often seen as a taboo subject, but the more people open up and seek advice, the better. Becoming aware of how much energy you are using, what food is wasted each week and if there are better deals out there for utilities and household commodities will help you and your family at any time.”
What does an Advice Works adviser do? What’s their day to day like?
“Our advisers have a varied day, which can be answering helpline calls, carrying out telephone and video appointments to help people with benefit claim forms, discussing money advice options with people, contacting previous clients to check if they need further assistance and responding to email enquiries we receive in our mailbox. Some of our advisers represent people at Social Security benefit tribunals, and some complete bankruptcy and Debt Arrangement Scheme forms with people.”
What sort of help can people get from Advice Works?
“Advice Works deals with any welfare benefits or money advice enquiries including entitlement checks and assistance to complete claim forms.”
What’s the one piece of advice you would give people right now?
“Talk about your money and don’t be afraid or embarrassed to seek advice because we’re here to help and not judge.”
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