Chris Ruane
Main Page: Chris Ruane (Labour - Vale of Clwyd)Department Debates - View all Chris Ruane's debates with the Department for Education
(13 years, 9 months ago)
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Yvonne Fovargue
I totally agree. Having worked for a CAB, I know that people are extremely confused about where the funding comes from. The organisation gets very few donations. The depth of its service is often misunderstood as well. I have heard people say, “Oh, CAB, they tell people where to go.” We did not often do that.
Chris Ruane (Vale of Clwyd) (Lab)
My hon. Friend has given us some of the current statistics. Looking ahead over the next few years when hundreds of thousands of public sector workers will be sacked by the Conservatives and Liberal Democrats, what burden does she think that will place on Citizens Advice? In my constituency of Vale of Clwyd, some 50% of workers are in the public sector, about 4,000 of whom may be laid off. What effect will that have on citizens advice bureaux in my constituency and elsewhere?
Yvonne Fovargue
Indeed, over the past year, the number of debt clients seen by the CAB has risen by 23%, and a significant increase is expected in the next few years as well, so the loss of skilled advisers in local bureaux will have a catastrophic effect. It is essential that local links are retained. The trust that has been built up between local agencies, such as that between the bureau and the local authority council tax collection department, will be lost, to the detriment of local people who are struggling to pay. St Helen’s citizens advice bureau had regular meetings with the head of finance and the bailiffs to discuss tactics and to raise issues from clients’ experiences. It developed a protocol to assist residents, particularly those entering employment who found that all their creditors immediately descended on them, causing quite a number to leave work, feeling that they were better off on benefits, despite their increased income, because their debts had come back to haunt them.
Lorely Burt
I would rather move on than talk about things other than the subject that we are here to discuss today, which is citizens advice bureaux and debt management.
Lorely Burt
Despite the heckling from a sedentary position, I will continue.
In 2009-10, citizens advice bureaux experienced a 23% rise in demand for their services. Of the queries that they dealt with, 150,000 were about quite complex debt problems, as outlined by the hon. Member for Makerfield. It is estimated that the loss of the financial inclusion fund reduces the debt advice capacity of citizens advice bureaux by 40% to 50%. So I am looking forward to hearing from the Minister today about what steps are being taken, particularly in relation to the national money advice service and how that service will help people and make up the shortfall.