List shows north residents have highest levels of debt

Borrowing: New figures spark calls for government to do more to fix issue

The north of Scotland has topped a new list of regions whose residents have the biggest amount of debt in the country.

The north-east had the highest levels of debt, with an average of £13,774, followed by the Highlands and Islands with £13,755.

The figures have been revealed by the debt charity StepChange in its annual Scotland in the Red report, which highlighted that the average debt of StepChange clients across Scotland was £12,677.

StepChange is now calling on the Scottish Government to expand the reach of Scotland’s existing Debt Arrangement Scheme (DAS) – which freezes interest and charges while someone pays off their debts.

The organisation’s charity head, Sharon Bell said the record number of people asking for help showed how dealing with mounting bills was a daily challenge for many ordinary working households.

She added: “Borrowing is growing rapidly and, for the first time since the economic crisis of 2008, the average amount of debt owed per StepChange client is also rising.

“If this continues, the social economic cost of personal debt will increase even further.

“This makes it all the more important that the Scottish Government commits to extending the Debt Arrangement Scheme to ensure that people with debts can have a fair

“The average amount of debt owed per client is also rising”

chance of getting back on their feet.

“Scotland can pride itself on leading the way in the United Kingdom for helping people with debts – but we can and should do more to adapt to the changing nature of debt.”

Banffshire and Buchan Coast MSP, Stewart Stevenson, backed the call, especially as the average debt of people contacting StepChange from Banffshire and Buchan Coast was £13,648.

The SNP member said: “Some people in Banffshire and Buchan Coast and A “shocking and disgusting” admin error delayed 130 refugee children from coming to the UK, according to a Labour peer.

Lord Dubs, who came to the UK as a refugee from the Nazis, has slammed the government for undercounting the number of places available for unaccompanied child refugees in an administrative error.

Ministers faced a furious backlash in February when they announced 350 minors would arrive from Europe through the Dubs Scotland already have access to the best protections in the UK, thanks to the Debt Arrangement Scheme – but we can and should go further to help.”

North-east Lib Dem MSP, Mike Rumbles, also called for action to tackle the issue.

He added: “Record numbers of people are calling charities for help because the Scottish Government has turned a blind eye to our fragile economy.

“It’s the duty of the Scottish Government to do as much as possible to help those who have had a temporary scheme – well below the 3,000 campaigners had called for.

The Home Office has now announced the total number of children resettled under the programme – officially Section 67 of the Immigration Act 2016 – will rise to 480.

Lord Dubs said in an interview: “I’m delighted for financial setback, like those struggling to find work or suitable accommodation.”

The Scottish Government brought in the Bankruptcy and Debt Advice (Scotland) Act to help financially vulnerable families in 2015.

The act introduced measures including which offer debt relief quickly and at less than half the cost of an application for bankruptcy under the previous equivalent scheme for those on low incomes.

A spokesman for Accountant in Bankruptcy the sake of those 130 children but shocked and disgusted that the government has made such a mess of this.”

The figure is being increased after officials discovered scores of offers to provide support for youngsters from local councils were mistakenly missed off.

Immigration Minister Robert Goodwill told the House of Commons yesterday that the government only recently became aware of the administrative error as part of collating the figures. said: “The Debt Arrangement Scheme is a statutory programme available to people across the whole of Scotland and is the only such scheme operating in the UK. In 2016-17, a total of £37.3million was repaid by individuals towards clearing their debts through DAS.

“The Scottish Government will shortly publish a response to a recent consultation which seeks to improve DAS, make it even more accessible, and help more people.”

“I am delighted for the sake of those 130 children”

PROBLEM: The north-east had the highest levels of debt on the new list