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Citizens Advice Bureaux dealt with an increase of six percent more calls regarding benefits and a significant increase of enquires about priority debts compared to 2009 their figures show.
The debt charity reported during the three months of April-June 2010 more people than last year enquired about welfare benefits than the same period last year and these revolved around sickness and disability related concerns.
Problems surrounding employment and support allowance (ESA) rose by 77 percent from Quarter one 2009/10 to Quarter one 2010/11. Carers Allowance rose by 17 percent, and Disability Living Allowance (DLA) rose by 11 percent.
Although Quarter one 2010/11 saw a slight decrease for the first time in two years of problems relating to consumer credit debts, there was an increase in serious debts where the consequences of not paying them off are most serious.
“With so many flaws in the current system we predict the number of people who come to us for advice on this benefit will only continue to increase,” said Gillian Guy, Citizens Advice chief executive.
“Demand for CAB services is at a record level and although the recession is technically over the effects will be felt among households of all types for a long time to come.”
Water supply debts rose by 18 percent, Council tax arrears by seven percent, Telephone debts also by seven percent, and rent arrears to private landlords by eighteen percent.
Other notable increases in enquiry were Higher Education up by 24 percent and Domestic violence up by 19 percent from last year.
The Consumer Credit Counselling Service’s Self Employed Centre also recently reported those who work for themselves are struggling more to repay debts as six and a half thousand had in the last year sought debt management solutions.
The Centre reported that many of these workers’ financial situations were so bad that they were only in a position to help 1,600 of them as over half of callers had a deficit budget.
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