Advice NI sees sharp rise in debt clients

Advice NI has reported a staggering rise in calls to its money and debt helpline as well as a significant increase in the average amount of debt held by clients.
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Northern Ireland’s largest advice charity has seen a 34% year-on-year increase in calls since April 2021. The organization has also seen a significant rise in the amount of debt held by clients in the first two months of 2022. After housing costs clients are reporting average debts of £3,700 – a 21% increase on 2021 figures.

However, the sharpest increase Advice NI’s money & debt advisers are seeing is in rates arrears, reporting an 89% increase in amounts owed.

The increase in numbers contacting Advice NI comes at a time when cost of living increases are rarely out of the headlines. The most recent energy price hike of 39% announced by SSE Airtricity is the highest in 10 years.

Sinead Campbell, Advice NI’s Head of Money, Debt and QualitySinead Campbell, Advice NI’s Head of Money, Debt and Quality
Sinead Campbell, Advice NI’s Head of Money, Debt and Quality

Sinead Campbell, Advice NI’s Head of Money, Debt and Quality said:

“The costs of energy and groceries have been going up across the board in 2022, and we can see a direct correlation with the number of calls to our helpline as they do.

Bills and inflation are on the rise but wages are not keeping up with those rises meaning there’s less and less money in a household budget each month. The cost of home heating oil has doubled in less than a week. People are struggling to keep on top of things financially.”

She said: “Advice is available for free and in confidence if you’re struggling. You can contact Advice NI by calling the Freephone helpline on 0800 915 4604 to speak directly to an adviser between 9am and 5pm Monday – Friday. You can also browse our website, www.adviceni.net/debt for full details of the service including contact details of advisers in your area.”

Independent

Advice NI and the Independent Advice Network dealt with over 290,000 queries in the 2020/21 period. During this time, the money & debt service, dealt with over £21m of debt, however the charity is predicting those figures will rise over the course of 2022.

Kevin Higgins, Advice NI Head of Policy said: “The unending, brutal spike in the cost of food, fuel and general cost of living has gone beyond crisis point. As the Utility Regulator, energy providers, retailers and the Bank of England all predict that the worst is yet to come, we look towards our Government - both local and national - to step up and support those most impacted, namely low income households both in and out of work.

The response from the UK Government has been particularly woeful. For example today we have seen the Social Security Benefits Up-rating Order 2022, which will increase means tested benefits and tax credits by 3.1% from April 2022. In the context of inflation rising to 8% and above, this is effectively a real-terms cut for those on the lowest incomes.

Much, much more must be done; and it is unthinkable that the additional funding package recently announced by Treasury to support people with rising energy costs, with £300m ear-marked for Northern Ireland, not being used because of the lack of a functioning Executive.”

Anyone can access Advice NI’s money and debt advice service for free and in confidence on freephone: 0800 915 4604 or by emailing [email protected].

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