New survey: 1/3 of social housing residents having difficulty or unable to manage debt

New survey: 1/3 of social housing residents having difficulty or unable to manage debt

by | Dec 10, 2022 | News

The latest social housing resident survey of the Resident Voice Index (RVI) has looked into debt and how it is impacting the lives of people living in social housing amid the cost of living crisis.

The resulting report reveals levels of worrying, all or most of the time, about being able to meet normal monthly living expenses had increased to 78% from 68% in the six months since the first Cost of Living survey (March-May 2022).

The RVI project collects data on the requirements, feelings and perceptions of social housing residents and communicates these to the broader audience who may be able to make a difference.

5,719 UK social housing residents responded to the latest survey, the findings of which have been put together in ‘Cost of Living: Crunch Time’ – the second RVI report to focus on the cost of living crisis and its impact on UK social housing residents. The first was in June 2022.

Debt

Debt, and the worry surrounding it, were main factors in the survey’s findings with eight in ten of all respondents having debt. Of those with debt, 28% had four or more sources of debt, while 10% had six or more sources.

The sources of debt identified in the report show credit card debt was by far the most prevalent, with 41% of respondents selecting it. 24% had debt in the form of energy bill arrears, 22% selected debt to friend or family member. Also in the top ten sources of debt were water bill arrears, goods on finance, buy-now-pay-later, council tax arrears, overdraft, rent arrears and bank or building society loan.

The report identifies the quarter (24%) of respondents who were already in energy bill arrears as particularly concerning, as almost all respondents (97%) took the survey before the introduction of the October 2022 energy price cap hikes.

Data from Ofgem gathered in late October 2022 estimated that more than 2 million households were already in debt on electricity bills, representing over 8% of the UK’s households. The much higher rate of social housing residents reporting energy arrears in the survey is flagged as deep cause for concern.

Debt management and worry

The survey also looked at how people believed they were managing debt. One third of respondents (33%) were having difficulty (20.7%) or reported being unable to manage (12.7%) their debt.

Almost half (47%) were labelled as ‘managing’ their debt. However, a majority (36%) of those chose the option: ‘I have debt that I can manage, but it’s getting harder’.

Almost all (95%) of those who weren’t managing their debt reported being worried all or most of the time about meeting monthly living expenses. This compares with a much lower 69% amongst those who were coping with their debt. Both numbers are very high and the overall score for this high-level worry was 78% across all respondents.

Responses to the survey among residents who mentioned disabilities highlighted a recurrent concern that disability benefits, such as Personal Independence Payment (PIP) are failing to cover the rising costs of fuel, food and other goods. When respondents were asked about any contributors to feelings of worry, 3.5% of answers made voluntary reference to disability.

The survey also asked respondents to rate their financial situation compared with six months ago, selecting either: ‘Better’, ‘The same’ or ‘Worse’. 69% indicated that their financial situation was worse and only 7% were able to commit to a better situation.

Gavin Smart, chief executive of Chartered Institute of Housing, said in the report: “This latest report from the Resident Voice Index comes at a critical time for the social housing sector.

“The cost of living crisis is affecting everyone but those on the lowest incomes, many of whom live in social housing, are impacted the most. These research findings shine a light on the devastating impact that cost pressures are having on residents every day across the country and are invaluable for organisations such as ours in raising awareness.

“The social housing sector is well placed to support people but we need to work together to highlight the support available and to call for policy change where it’s needed.”

Ban on using credit cards for gambling in the UK from April 2020

Ban on using credit cards for gambling in the UK from April 2020

by | Jan 15, 2020 | News

The Gambling Commission has announced a ban on gambling businesses allowing consumers in Great Britain to use credit cards to gamble.

The ban comes into effect on 14 April and follows the Commission’s review of online gambling and the Government’s Review of Gaming Machines and Social Responsibility Measures. A public consultation was carried out between August and November 2019.

The Commission says 24 million adults in the UK gamble, with 10.5 million of those gambling online. UK Finance estimate that 800,000 consumers use credit cards to gamble.

The ban, which will apply to all online and offline gambling products with the exception of non-remote lotteries, where payment is made face-to face, will provide a significant layer of additional protection to vulnerable people.

Neil McArthur, Gambling Commission chief executive, said: “Credit card gambling can lead to significant financial harm. The ban that we have announced today should minimise the risks of harm to consumers from gambling with money they do not have.

“Research shows that 22% of online gamblers using credit cards are problem gamblers, with even more suffering some form of gambling harm.

“We also know that there are examples of consumers who have accumulated tens of thousands of pounds of debt through gambling because of credit card availability. There is also evidence that the fees charged by credit cards can exacerbate the situation because the consumer can try to chase losses to a greater extent.

“We realise that this change will inconvenience those consumers who use credit cards responsibly but we are satisfied that reducing the risk of harm to other consumers means that action must be taken.”

Mr McArthur warned that, although likely to reduce gambling harm, the banning of credit cards needed to be accompanied by other efforts.

“The ban is part of our ongoing work to reduce gambling harm,” he added. “We also need to continue the work we have been doing with gambling operators and the finance industry to ensure consumers only gamble with money they can afford to spend.”

Culture Minister Helen Whately said: “While millions gamble responsibly, I have also met people whose lives have been turned upside down by gambling addiction.

“There’s clear evidence of harm from consumers betting with money they do not have, so it is absolutely right that we act decisively to protect them. In the past year we have introduced a wave of tougher measures, including cutting the maximum stake on fixed odds betting terminals, bringing in tighter age and identity checks for online gambling and expanding national specialist support through the NHS Long Term Plan.

“We’ve also secured a series of commitments from five leading gambling operators that will include £100 million funding towards treatment for problem gamblers.

“But there is more to do. We will be carrying out a review of the Gambling Act to ensure it is fit for the digital age and we will be launching a new nationwide addiction strategy in 2020.”