27-08-2008 Borrower's survival guide to the credit crunch
05-06-2008 Dealing with debts - have your say
19-12-2007 Rooting out the Rogues
03-12-2007 Be a smart Christmas shopper urges Citizens Advice

Household finances have been badly stretched in the past year as the cost of energy has increased by 17% and the cost of food by 12%. And the credit crunch means that the cost of new mortgages has increased, there are fewer mortgages available to choose from, and they are more difficult to obtain.

This is making life harder for the 1.4 million borrowers coming off cheaper, fixed-rate mortgages in 2008. But there are ways for people to help themselves and organisations to help people cope if they are struggling, according to the Council of Mortgage Lenders, Citizens Advice and Shelter.

No matter the size of someone's financial problems there are steps they can take to tackle them, and the CML, Citizens Advice and Shelter have worked together to come up with ten tips to help struggling households get through the tough times.

See these steps on the Citizens Advice Site Credit crunch survival guide

A significant number of people in debt decide to manage negotiations with creditors themselves. They will sometimes have sought initial guidance from an advice agency, but will take everything else forward on their own.

The credit industry largely advises people in difficulty to call them and discuss their problems, but evidence from Citizens Advice Bureaux shows that they are not always treated sympathetically or positively.

Alex MacDermott, creditor liaison policy officer at Citizens Advice says:

"Last year nearly one million people in England and Wales sought free advice on debt related problems*. A major part of this work involves giving clients the information and support they need to take control of their debt problems. Unfortunately, we are seeing more and more clients coming back and telling us that their offers won’t be looked at unless they are endorsed by a third party such as their local CAB.”

Citizens Advice are keen to hear from anyone who has tried to deal with their own debt problems, whether the experience was good or bad, in preparation for a report due to be launched in November this year.

To take part in a short survey on this subject please visit: www.adviceguide.org.uk and click on the ‘dealing with your debts’ logo. Respondents will be asked why they decided to act on their own behalf, what happened when they did and what changes they would like to see to improve the system.

The report is a major collaboration between three of the biggest providers of debt advice in England and Wales. It aims to make recommendations for changes in current practice, so that everyone can more easily access good quality advice and information, become debt free and get back on track with their finances.

* Total number of debt enquiries made to Citizens Advice, National Debtline and Advice UK in 2007.

Both charities are also warning that exploitative practices such as non payment of tax and national insurance are putting good employers at a competitive disadvantage in the marketplace, forcing some to cut corners or risk going out of business, potentially triggering a downward spiral of wages, conditions and even workplace safety.
Last year, Citizens Advice Bureaux across the UK dealt with over half a million employment related matters. Of these it is estimated that 60% are cases where statutory workplace rights have been denied, such as the statutory right to four weeks paid holiday per year, denial of statutory sick leave and pay, and the reduction of (often already low) wages to illegal levels by excessive deductions for accommodation, transport and other ‘services’. Workers may also be required to work excessively long hours or are denied proper rest breaks, be summarily dismissed simply for being pregnant or not receive wages owed after leaving employment.
Those most at risk include pregnant women, migrant workers and those who – on account of their age, disability or lack of skills– face the greatest challenge in finding alternative employment.

Rooting out the Rogues highlights how the combined remit of the four statutory bodies* currently tasked with enforcing workers’ rights is far from comprehensive leaving many workers and issues unprotected. It adds that there is little personal incentive for those who are covered to make a complaint, especially where successful action could result in their employer losing their licence and the employee their job.

In addition, Citizens Advice and Citizens Advice Scotland find that the Employment Tribunal system, the only option left for many after raising a formal grievance, is also letting vulnerable workers down. Not only is the cost of legal representation likely to be prohibitive, but the charities’ evidence shows that the process can be daunting and stressful. Even those who are successful and win a monetary award are not guaranteed to ever see the money, or see their employer held to account.
Citizens Advice Chief Executive David Harker said:

"While the vast majority of employers try hard to meet their legal obligations, our evidence shows that there are still far too many rogues out there, flouting the law, ignoring rules without sanction and profiting from vulnerable workers.

"We welcome the UK Government’s increasing recognition of the problems caused by rogue employers and the difficulties faced by the most vulnerable workers, but much more still needs to be done. Tens of thousands of workers in the UK economy are currently failing to benefit from the UK Government’s very welcome policy programme, revealing a real need for a ‘fair employment commission’ to give exploited workers somewhere to turn, give employers a level playing field, and root out the rogue employers."