Almost 700,000 Scots at risk from ‘problem debts’, new report warns

Almost 700,000 Scots have problem debts or are at risk of having them, a new report has revealed.

The impact on the public purse is about £750 million, according to debt advisory charity Stepchange Scotland.

It helped more than 30,000 people who were struggling with money issues last year.

With almost half (46 per cent) of those seeking help struggling with council tax arrears, it called on local authorities to ensure they have “sustainable arrangements” that give people a “fair chance” to repay their debt. It also recommended the Scottish Government task a minister with coordinating and developing a “high impact action plan to address the crisis that is blighting many lives and businesses across Scotland”.

Stepchange made the plea after the Scotland in the Red report for 2018 showed the average amount of money those who came forward for help had after paying housing, heating and council tax was just £12.64 a month. Sharon Bell, head of Stepchange Scotland, said she was “increasingly alarmed by the increases in the proportion of our clients who are struggling with household bills, particularly council tax”.

Research by the charity “shows that our clients in Scotland are significantly more likely to have council tax arrears compared to elsewhere in the UK”, she added.

Stepchange Scotland said the average amount of council tax arrears its clients had was £2,017.