Concern over debt report findings

Swansea Labour AM Mike Hedges has today expressed concern over the findings of a report into poverty, showing that around 1 in 6 people in Wales are struggling with to cope with debt.

The report published by the Public Policy Institute for Wales (PPIW), which was commissioned by the Welsh Government and looked into the levels of over-indebtedness in Welsh households and communities, revealed that around 16%, or 400,000 people, are in too much debt.

The report also identified some of the causes which push people into debt; this includes low income, redundancy or unemployment, delays in receiving benefits and, more recently, cuts to benefit and tax credit entitlements. Financial exclusion, where people cannot access lower cost borrowing and resort to payday lenders or loan sharks, is also strongly associated with indebtedness.

Commenting on the report’s findings, Swansea East AM Mike Hedges said:

“The report’s findings really are a shocking read, and highlight the creeping problem we’re seeing of rising debt in Welsh households and communities.

“Whether someone is in debt or facing the prospect of debt as a result of recent welfare reforms or personal circumstances, it’s important that people know there is free help and advice available out there through bodies like the Citizens Advice Bureau, Credit Unions, and the Money Advice Service. 

“We also need to better educate our young people from a young age about effectively managing money to avoid debt, which is why the teaching of budgeting and financial education in our classrooms is crucial in combatting this problem.”