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Charity urges tax and housing debt wipeout for poor

HOUSING and council tax debt accumulated during the coronavirus pandemic should be written off for those struggling to make ends meet, Citizens Advice Scotland (CAS) has suggested.

The charity said that 44 per cent of its clients who are dealing with complex debts have no money left at the end of the month after meeting their living costs.

In its manifesto for all parties ahead of the Scottish Parliament elections, the group said that urgent action would be needed to tackle debt as the lockdown is dismantled.

It said that the next Scottish government should write off or help to pay off housing and council tax debts built up during the pandemic.

CAS chief executive Derek Mitchell said: “The next Scottish government will face the immediate challenge of our economy reopening as various financial support schemes expire.

“This is a moment of huge risk for people, many of whom will have built up new or additional debts and arrears because of the crisis and face reduced incomes, rising bills and unemployment.

“Our analysis suggests more than two in five people coming to us for help with multiple debts have no money left at the end of the month after meeting their living costs.”

The group’s manifesto also makes other proposals to help support people living in poverty. 

As well as a debt write-off, CAS is calling for changes to the legal aid system and a review of fuel poverty support schemes.

Mr Mitchell added: “It’s vital that the next Scottish government addresses this threat with the urgency it requires.

“Failure to do so increases the chances of people across the country being swept into further destitution and poverty and will risk any wider economic recovery.”

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