Warning over rise in debts to public bodies

There has been a “real, significant increase” in families experiencing public debt, MSPs have been warned.

Holyrood’s social justice and social security committee took evidence from experts yesterday.

The committee was told of difficulties and challenges faced by families across Scotland as debt is pursued by public bodies such as local authorities, housing associations and the Department for Work and Pensions.

Kirsty McKechnie, from Child Poverty Action Group in Scotland (CPAG), said “more and more” families are in debt over essentials.

She told of the “very aggressive” collection of historic tax credit and social fund debts, which she said can be so old there is very little evidence over whether there is a debt in the first place.

She said that in these cases, it is also often difficult for people to challenge the debt and said families with older children may find their benefits being deducted due to historic claims.

Ms McKechnie suggested some public debt could be avoided with “better administration”.

She highlighted the fact there is no onus on councils to provide decision letters to individuals when rulings are made on council tax reduction – resulting in a lack of transparency when it comes to changes to payments.

Martin Canavan, head of policy and participation at the charity Aberlour, said there has been a “real, significant increase” in public debt – and the cost-of-living crisis is not something new for those on low incomes.

“They’ve been experiencing a cost-ofliving crisis for many years, long before the pandemic and the current financial environment,” he told MSPs.