Evidence library

Report commissioned by Aberlour outlines and evidences what the impact of public debt, such as Council tax and rent arrears, has especially on low income children and families in Scotland. The report also indicates that low income families are in the midst of a debt crisis.

The qualitative research was conducted by Professor Morag Treanor from Glasgow University, as part of a wider public debt research project which has examined school meal debt and public debt arrears faced by low income families receiving Universal Credit. She reports that for too many low-income families their income simply is not enough to enable them to afford the basics for themselves and their children, forcing many into debt just to survive.

Summary of key recommendations: https://tfn.scot/news/hugely-detrimental-public-debt-pulling-families-further-into-poverty

“We are calling on government at all levels to tackle the debt crisis that so many low-income families are facing and take action on public debt that prevents families getting into debt in the first place. This must include ending the 5 week wait for new Universal Credit claimants and increasing Universal Credit to a level that enables families to cover the costs of the essentials they need for themselves and their children.

“We also want to see action to make public debt recovery processes fairer and that don’t push families into deeper into poverty, recognition of the impact of domestic abuse and financial abuse that too often leaves women solely liable for a joint debt, and for local authorities and social landlords to stop preventing families moving to more suitable accommodation if they have outstanding rent arrears.”

Public sector debt recovery is recognised as being unfair, inflexible and inefficient. Repayments and deductions for public debt and arrears are recouped considerably quicker than for private debt.

Moreover removing a significant chunk out of families’ already low income is pushing low income families deeper into poverty.