Government to slash funding for debt advice charities

”Government

The Government’s massive spending cuts, which were introduced to trim the spiralling budget deficit, is to lead to a cut in funding for debt advisers.

The news comes as debt advice charities are at their busiest as households are squeezed by unemployment, tax hikes and rising inflation.

As a result, many debt advisers believe that the Government should be pumping more money into helping people manage their debt.

However, debt advisers are being forced to cease taking on new cases as their funding will be axed next month.

The Citizens Advice Bureau has already served redundancy notices to hundreds of debt advice staff and said the decision to end funding could not have come at a worse time.

Meanwhile, the Money Advice Trust, a charity which promotes independent help for people with debt problems, is expecting more people to turn to debt advisers this year, taking the total to a record 1.6 million.

In related news, a report published yesterday by the Post Office revealed millions used their credit card in January for daily purchases, suggesting the pressure on household finances is growing.

The report said more than 11.5 million people (one third of credit card holders) relied on plastic last month to fund daily purchases.

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