Scots councils 'trapping families in poverty' with debt collection tactics

EXCLUSIVE: Aberlour has raised concerns over the way some organisations are clawing back arrears.

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EXCLUSIVE: Aberlour has raised concerns over the way some organisations are clawing back arrears. Get the latest news from Dundee Live sent straight to your inbox with our weekly newsletter. We have more newsletters Get the latest news from Dundee Live sent straight to your inbox with our weekly newsletter.

We have more newsletters Scots councils are helping trap families in poverty by collecting debt without compassion, experts warn. Aberlour has raised concerns over the way some organisations - including local authorities and benefit agencies - are clawing back arrears. It comes as the leading children's charity today hails the impact of a landmark debt support service shows how rent, council tax and school meals can be collected without inflicting more hardship on families.



The pilot programme has eased the pressure of public debt on families across Tayside, Angus and Perth & Kinross while councils reviewed and adapted collection systems. Heather Kelly, Aberlour assistant director, said the Family Financial Wellbeing service has been built on partnership with public sector organisations and changed how arrears are collected as a result. The service offers expert advice and direct financial assistance through a hardship fund where the average award was £2,700 for each family struggling to clear public debt.

Kelly said: "Almost nine out of ten of the families referred to the service are vulnerable and already trapped in debt. They need support and £2700 is not a lot of money to help them escape poverty . "It makes a huge difference and the improvement to mental and physical health and family life is immeasurable.

Poverty is gruelling and can strip the hope from families. They can’t get on top of it and can’t see a way out. They feel like bad parents, that their children are missing out.

"This service shows that can change, that direct assistance, financial help and family support can turn things around. People began to see the possibility of a different future for themselves and their families." All three councils supporting the service - Dundee City, Angus, and Perth & Kinross - backed by The Robertson Trust, have looked at how debt recovery can be adapted to help keep families afloat while repaying their debts.

The ground-breaking work of the pilot poverty project will be highlighted at an event in Perth today attended by Shona Robison, the Scottish Government Finance Secretary, and council officers from Scotland’s local authorities. Martin Canavan, head of policy and participation at Aberlour , said the work of the service to help families find financial stability and escape poverty should be a template for public debt relief across Scotland. He said the pilot scheme has confirmed how helping change the pursuit and collection of public debt can ease child poverty .

He said: “In Tayside, we have shown how councils can change and improve how debt can be recovered without the immediate need for national legislation. "The public sector can recover debt differently, in a more compassionate way that will help them escape poverty and not risk making their financial situation even worse. It means families prevented from becoming homeless, children prevented from being taken into care, and families being supported back into work.

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