1. Presentation to Citizen’s Advice in Teignbridge
The Debt Trap
Presentation to Citizen’s Advice in Teignbridge
15 July 2016

2. The Debt Trap reports and campaigns
Highlighting the damage that debt causes to children
Playday not payday
Protecting children from irresponsible for payday loan adverts
Show some warmth
Exposing the impact of energy debt on children
Wolf at the door
How council tax debt collection is harming children
The cost of being care free
The impact of poor financial education on young people leaving care
Mental health and Debt
21 September September 2018

3. The Debt Trap
May 2014
2.5 million children are living in families in problem debt.
2.9 million families are at risk of falling into the debt trap.
Often occurs when the family suffers from a sudden income shock – such as redundancy, sanctions or illness.
Debt trap is created when families borrow from one creditor to pay for another or take out credit to pay for essentials.
Parents try to hide the debt from their children who are still often aware of it
21 September September 2018

4. Playday not payday
6 in 10 parents think that payday loan adverts make children believe they are a normal way to manage money
A quarter of children who think that payday loan adverts are fun, tempting or exciting would consider using them when they are adults
3/4s of children had seen a payday loan advert in the past week.
80% of payday loan adverts are before the watershed.
21 September September 2018

5. 500 people responding to consultation
Payday loans campaign
To ban payday loan adverts before the watershed.
500 people responding to consultation
“I’d like to pay credit to the Children’s Society and their supporters for bringing this issue into our inboxes and to our attention” Baroness Jolly
21 September September 2018

6. Show Some Warmth
Nearly a million children are living in families in energy debt.
The average energy debt is £431
Parents have to cut back on heating their home to pay back debt
Children in energy debt were three times more likely to have been ill last winter than other children
Families struggling to make ends meet are facing unaffordable and irresponsible debt repayment plans.
21 September September 2018

7. Energy companies progress to date
21 September September 2018

8. Wolf at the Door
1.6 million children live in families who have been in council tax debt
Two in ten children in council tax debt have been visited by a bailiff
Number of households falling behind on their council tax has increased by 25% due to the localisation of council tax support.
Just 14 days after missing a payment a family could get a courts summons.
21 September September 2018

9. Council changes Councils who have changed their council tax policies
Solihull
All care leavers will have their council tax accounts marked and none of these accounts will be referred to hard recovery. This means no care leaver in Solihull will be referred to a bailiff.
Bailiffs will only visit a house where they identify children there during school hours and during term time.
If someone with a family contacts the council and asks for their debt to come back to the council from the bailiffs we will do this and make an arrangement with them.
Hammersmith and Fulham have now included in their council tax recovery policy a ‘breathing space’ scheme
Stockport now treat care leavers as a priority group for discretionary payments - overall discretionary payments budget will rise by £100,000
Lambeth will now not send bailiffs round to homes of care leavers
Cheshire East will now provide 100% council tax exemption to care leavers up until the age of 25
Mendip
Families with children are now viewed as a vulnerable group for council tax debt collection
Bailiffs will now only be used as a last resort for council tax collection for vulnerable groups
Debt advice will be highlighted on the council tax pages of their website, and included on written communications to residents that fall into arrears
Arrears letters that are sent out to residents will be updated to take a more supportive tone
21 September September 2018

10. The cost of being care free
57% of young people leaving care find it difficult to manage money
Almost half of local authorities don’t provide young people leaving care with financial education and debt advice
4,000 benefit sanctions have been applied to care leavers in the last two years
Care leavers only receive support when they reach crisis point
For care leavers subject to immigration control, their immigration status overrides their leaving care status meaning they miss out on support.
21 September September 2018

11. Mental Health and Debt
Upcoming research
Examining the impact of debt on the mental health in children.
Initial analysis of the Millennium Cohort Study shows that the more creditors a parent owes money to, the more likely a child will have a mental health problem.
Qualitative research with parents and children affected – do you know anyone who might be suitable?
Launching in October 2016.
21 September September 2018

12.
@frenchastasia
Childrenssociety.org.uk/debt