One in four adults (24%) in Scotland have used a form of credit to pay for essentials in the past three months, research commissioned through YouGov by StepChange Debt Charity has revealed.
The data came as StepChange Scotland has published its Scotland in the Red report, exploring the debt and demographics of its clients in 2023.
The report revealed a difficult picture for Scots’ finances, with certain groups, particularly those who are more vulnerable, facing acute pressures brought on by the cost-of-living crisis.
The charity said that increasing household financial resilience must be a priority for any incoming Government, as it continues to support thousands of people who are falling into debt due to the high cost of essential expenditure.
Among StepChange Scotland clients in 2023, almost one in three (31%) were in a negative budget, up from 27% in 2022.
More than half (55%) of clients were in full or part time work, but still faced difficulty with problem debt.
Furthermore, almost half (47%) of clients under 25 were in Council Tax arrears, compared to 30% of all clients.
In addition, the average household arrears among all clients rose from £2,920 in 2022 to £3,147 in 2023 – the highest in five years
Council Tax remained a challenging bill for StepChange Scotland clients, with the charity concerned over how much more prevalent council tax debt is among younger people, single parents and vulnerable clients.
StepChange Scotland emphasised the need for reform of collection practices, as local authorities’ often quick and sometimes inappropriate use of sheriff officers can exacerbate hardship for struggling households.
Sharon Bell, head of StepChange Scotland, said: “With only a week to go until the General Election, a new Government in Westminster must prioritise financial security, ensuring that the cost of living crisis does not create long-lasting difficulty for households.
“This should involve giving people a fair chance to re-build financial resilience through adequate social safety nets and fairly remunerated employment.
“With our data showing that council tax is still pushing low-income households into hardship, we need to see a continued focus from the Scottish Government on creating fairer council tax collection practices.
“This can be achieved through collaborative working with local authorities, sheriff officers and advice agencies.”
