‘The cost of living crisis hasn’t gone away – our helpline never stops ringing’
“He just won’t give up,” said consultant Kerry Gavin. “We had to increase the size of our team, we had to increase the working hours, we had to increase the training… our phones were constantly ringing. [ringing].”
The mother-of-two has worked with the advice team leader at charity CFINE support services in Aberdeen for 10 years, first walking through their door when looking for support. As well as emergency food parcels, the organization offers residents of the Scottish city essential advice on topics such as wellbeing, finance and debt.
Ten years since he joined the team, the demand for support services like his is higher than ever; but funding is having a hard time keeping up.
Research from AdviceUK, which represents more than 700 independent advice providers, reveals demand for these services has increased by 40 per cent since 2018-2019, before the dual pressures of the Covid pandemic and the ensuing cost of living crisis.
Reflecting on how her business has changed, Ms Gavin said: “This is due to an increase in the number of working families who are unable to provide food until the end of the month or are having to give up certain toiletries or cleaning products. “And every bill is rising, from housing costs to council tax, gas, electricity and travel costs.
“So if everything is going up, even by a small margin, but incomes or benefit rates aren’t going up in line with that, then people are having to make sacrifices left, right and centre.”
The increase in demand means 88 per cent of organizations see staff recruitment and retention as a major issue, with almost two thirds (61 per cent) saying they will reduce or cut services due to financial constraints.
The 43-year-old added: “There’s a high burnout rate, these counselors often work from morning until night, very emotional cases… We’ve got one person who’s been ill for a year and a half now.”
Michael Denton, 43, chief executive of Advice Mid Wales, said funding for his center was currently “unnecessary” despite serving residents in three counties in Wales for more than 40 years.
Get a free partial share of up to £100.
Capital is at risk.
Terms and conditions apply.
ADVERTISING
Get a free partial share of up to £100.
Capital is at risk.
Terms and conditions apply.
ADVERTISING
Funding for these services comes largely from short-term charitable donations (30 percent) and local government spending (19.8 percent). But the competitive nature of these grants and the instability of municipal budgets mean their future is often uncertain.
“We’re often the first people people turn to in times of crisis. So to take away that and that security, not just in terms of economic value but in terms of social value, would be disastrous for a lot of people,” Mr. Denton said.
“They will always need the help we offer. And if we don’t offer it, I don’t know if anyone else can fill those gaps.”
Like many advice centers in the UK, most of the staff at Advice Mid Wales are either volunteers or work part-time. Mr Denton said a consultant worked three jobs and was also the landlord of a pub as well as managing the service.
The cost of living crisis in the UK began in late 2021, when rapid inflation sent prices soaring beyond levels that millions could afford. The CPI peaked at 11.1 percent in October 2022, then fell to an average of 3 percent in mid-2024; It was at 3.4 percent in December last year.
This rate remains above pre-pandemic levels and the Bank of England’s 2 per cent target. For many people, the prices of food, household bills and other basic needs are still too high.
Liz Bayram, CEO of AdviceUK, said: Independent: “The cost of energy and everything we rely on is not decreasing… Despite this theory that the crisis is easing the cost of living.
“And because it’s difficult to navigate the benefits system that so many people rely on, it’s difficult to make sure you’re getting the resources you need.”
Research commissioned by the charity last year found that every £1 invested in free expert advice saves £2.71 in public costs by preventing the need for intervention during the crisis phase. Mr Denton estimates that the services provided by Advice Mid Wales alone have helped return £948,000 to the local community since last April.
“This is a missed opportunity by not doing it well,” Ms Bayram said. “Because it prevents people from going to court, it prevents people from becoming homeless, it prevents people from being dependent on overstretched public services, it prevents people from being hospitalized.
“It needs to be seen as a central part of how the government fixes the cost of living crisis.”
The group backed a campaign launched last week by the National Association of Welfare Advisers (NAWRA) to make welfare counseling a legal duty; This means that local authorities must ensure the continued provision of this service.
The campaign is also backed by Battersea MP Marsha de Cordova. Independent: “The importance of benefits advisors has been clear throughout my career, from working in the third sector to becoming an MP.
“The complexity of our social security system means that welfare rights advice is vital but often hampered by underfunding and delays. That is why I support NAWRA’s campaign to introduce a statutory duty to provide welfare advice, ensuring it is equally accessible to everyone who needs it.”
A government spokesman said: “We recognize the vital role of advice services in supporting people across the country and have allocated £78bn to councils this year to help local leaders fund local services, including advice centres.
“We are tackling the cost of living head on, increasing the national living wage of £900 a year for a full-time worker from next year and giving low-income families the support they need by getting a £150 cut on average energy bills from April.”
