Citizens Advice Cymru sees 200% jump in people from Wales needing help with fuel debt

More people than ever are seeking the help of the Citizen's Advice - with many working families on steady incomes struggling with the cost of living.

Wales' biggest branch of the charity, in Bargoed, has seen a 200% rise in people coming forward for help with fuel debt in the past two years.

And the charity warns the trend is set to continue, with many more needing help over the winter months and beyond.

"It's really difficult for a lot of people," says Luke Young, Assistant Director at Citizens Advice Cymru.

"All of our data shows us that people have been struggling over the past few months - that's with energy costs, food and fuel costs and we're building up to a winter where, despite the Government's quite generous energy price guarantee, it's still going to be difficult for lots of families across Wales."

The UK Government's Energy Bill Relief Scheme will provide a discount to all firms for six months from October 1.

Mr Young says the energy price guarantee is a "big package", but it'll still leave people in Wales in a place where they are going to have to make some very tough choices.

He told ITV's Sharp End: "It sets energy prices at a rate higher than they ever have been.

"What we would have liked to have seen from the UK Government was more support for those on the lowest incomes - targeted support.

"The tax cuts announced last week benefit those in the higher brackets and whereas some on lower incomes benefit slightly - it's nowhere near to the extent that those on higher incomes do."

Between 2020/21 and 2021/22, Citizens Advice Cymru saw:

The UK Government says it has committed to protect Welsh households and businesses from rising prices through the Energy Bill Relief Scheme.

A spokesperson for the Government said: "A healthy, growing economy is the best long-term solution to the enormous financial pressures facing the entire country.

“By driving investment, cutting taxes, and backing business, the UK Government will get more people into well-paid jobs, allow workers to keep more of their hard earned money and get the Welsh economy growing again.”

Chancellor Kwasi Kwarteng has today (Monday, October 3) announced an abrupt U-turn over the abolition of the top rate of income tax for the highest earners, admitting it "was the wrong thing to do".

Chancellor Kwasi Kwarteng’s mini-budget, which saw the pound plummet to a 37-year low against the dollar, slashed the top rate of income tax for the wealthiest in the country and remove the cap on bankers’ bonuses.

Citizens Advice had been predominately used by people claiming benefits in a bid to help maximise their money, but now working people who have not struggled previously are asking for help.

Mr Young said: "Some of them have always considered that they have good jobs, they can manage their money and have very few issues but suddenly the pressures have built up so much in a short space of time they've found themselves coming to us for our services."

Carys Birkby, Debt Services Team Leader at the Caerphilly Blaenau Gwent Contact Centre, says more and more people are asking for advice on claiming food vouchers and using foodbanks.

She said: "Clients are becoming more reliant on that as a way of feeding their families month-to-month.

"It's quite a scary time to be honest with you. As we go into the darker, colder months unfortunately things are going to worsen before they improve. It's obviously concerning for us as advisers here.

Working families are increasingly seeking help

Citizens Advice is also concerned that if the cost of living crisis doesn't ease, more people could be driven to loan sharks.

Keith Thorne, Debt Service Manager, said: "As interests rates increase it's more costly to borrow by normal means.

"This time of year, building up to Christmas and making sure they can get what their family wants, they'll certainly look at unconventional ways to borrow money.

"Our demographic has changed quite considerably over the last couple of years. Previously we were seeing people who were predominately benefits or welfare based looking to potentially maximise their income, whereas now we're seeing working families and ways they can manage their income."

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