Debt Charity Warns More Scots Struggling to Pay Mortgage or Council Tax Bills
An increasing number of Scots are facing challenges in meeting their mortgage or council tax obligations due to the rising cost of living, according to a debt advice charity’s warning. StepChange reported a notable surge in individuals falling into arrears over the last three months compared to the same period in 2023. The charity highlighted that 21% of its clients with mortgages were currently finding it difficult to keep up with payments, a significant increase from 14% the previous year. Additionally, 36% of individuals were falling behind on their council tax payments, marking a three-percentage-point rise. The organisation noted that January posed financial difficulties for many as expenses from the festive season were settled. Moreover, persistent high energy costs continued to impact many Scots financially, despite a decrease from the peak in 2022.
Sharon Bell, the head of StepChange in Scotland, expressed concern over the financial strain faced by individuals, especially during the post-holiday period. She emphasised the importance of seeking assistance for those dealing with problem debt, highlighting the charity’s free and non-judgemental advice services available online and over the phone. Bell highlighted the significance of prompt action by both Scottish and UK Governments in supporting financially vulnerable households.
A recent YouGov poll commissioned by StepChange revealed that one in four individuals across the UK would struggle to afford Christmas expenses. This equated to approximately 14.5 million people expressing financial concerns during the festive period, indicating a year-on-year increase of 1.6 million. Notably, over half of those seeking debt advice were employed, with 47% residing in households with children.
Paul McLennan, SNP Housing Minister, underscored the necessity for accessible advice services, particularly in addressing household debt. McLennan lamented the lack of action by the UK Government to alleviate financial burdens related to mortgages and energy bills. In contrast, the Scottish Government’s proposed Budget Bill for 2025-26 includes over £12.8 million for income maximisation support, welfare, and debt advice, representing an increase from the previous year.
In summary, the rising cost of living in Scotland is placing a growing number of individuals at risk of falling into debt, particularly concerning mortgage and council tax payments. The ongoing financial challenges faced post-Christmas, compounded by high energy costs, underscore the importance of providing adequate support and resources for those experiencing financial strain. Initiatives aimed at offering free advice and assistance are vital in helping individuals navigate and overcome problem debt, facilitating financial stability and well-being in the community.