The Cost of Living Scrutiny Inquiry Panel met to gather evidence from Caroline Newman, Chief Executive of Citizens Advice Swansea Neath Port Talbot, regarding the impact of the rising cost of living. The panel discussed various issues including increased demand for support, fuel poverty, debt, and barriers to accessing advice, with the findings to be incorporated into the inquiry's final report.

Cost of Living Impacts and Support

Caroline Newman from Citizens Advice detailed the significant increase in clients seeking support due to the rising cost of living. She highlighted that demand has risen, leading Citizens Advice to expand its drop-in service to five days a week. A self-help tool has been developed to provide accurate information and reduce the number of people needing to visit in person, though this has not yet reduced footfall.

The Discretionary Assistance Fund (DAF) applications have also increased. Citizens Advice is collaborating with the Welsh Government to ensure individuals on their second DAF application receive more comprehensive advice, focusing particularly on families with children under five to address child poverty.

Fuel debt is a growing concern, even before the recent price cap changes. While fuel vouchers can be issued to those with prepayment meters, there is no tangible support for those struggling with bills who are not on such meters. This is particularly problematic as many vulnerable residents are on prepayment meters, but an increasing number of those struggling to pay do not have them.

Employment-related advice has seen a 22% increase, possibly linked to changes in employment law. Citizens Advice is investing in training advisors and conducting awareness sessions. They are also hoping to offer a drop-in service at Swansea University for students and staff.

Charitable support, such as food bank usage, is seeing a trend of slightly younger clients (35-44) compared to their usual demographic (55-64). There has been a 14% increase in debt, and Citizens Advice aims to intervene earlier to help clients manage debts through payment plans or, if necessary, bankruptcy.

Across Wales, Swansea's demand for benefit support is 4.3 percentage points above the Welsh average. Charitable support is 1.2% above average, immigration support is 0.6% above, and employment advice is 0.3% above. A key objective for the council is to establish more access points for advice, bringing services to residents rather than relying on them to come to the service, though this presents resourcing and collaboration challenges.

Councillor Susan Jones inquired about the impact of anticipated redundancies at Admiral and how Citizens Advice would support affected individuals. Ms. Newman stated that their employment advisors would provide information on rights and consultation processes, anticipating an increase in demand a few months after the redundancies, once redundancy payments begin to run out.

Councillor Lynda James raised concerns about fuel costs on prepayment meters being higher than other plans. Ms. Newman confirmed this is the case and that Citizens Advice has no control over it, noting that advocacy has been done to encourage people onto prepayment meters, but suppliers' commercial viability dictates this method for energy access.

Councillor Mair Baker shared her personal experience with a prepayment meter, highlighting how she manages her usage. She also noted that younger parents are increasingly switching to prepayment meters due to difficulties with quarterly payments, often accumulating debt that is then deducted from their meter top-ups, a situation they may not fully understand. She also mentioned that young parents often use more electricity due to children's gadgets. Ms. Newman added that while smart meters and social tariffs can help, some individuals still struggle to afford their bills, indicating a significant issue in the locality.

Regarding the drop-in centre at the store, it is open for drop-ins from 10 am to 12 pm daily, with appointments available between 9 am and 4 pm.

The panel discussed the challenges faced by individuals not on prepayment meters who may still be experiencing fuel poverty. Ms. Newman explained that they work with clients to find the best tariffs and engage with them earlier. However, funding for energy advice has been restricted, and they currently do not have a dedicated energy advisor. Other organisations like Warm Wales also have limited funding for energy advisors. British Gas is partnering with Cutcmawr to explore further support options.

Ms. Newman also highlighted that many people in work are now needing financial support because their salaries are not keeping pace with the cost of living. Energy debt is the most common issue, followed by council tax debt. Swansea Council is commended for its support in setting up payment plans and reductions for council tax debt.

A significant concern was raised about people of colour being disproportionately represented among those seeking crisis support. Citizens Advice is researching this issue and working with organisations like the Chinese in Wales Association to build trust and encourage access to services. The panel acknowledged the existence of racism and its impact on individuals seeking help.

Pension Credit Uptake

Citizens Advice previously worked with the council's welfare benefits team to increase Pension Credit uptake, but data protection issues hampered direct mailings. A standalone project with Independent Age, targeting individuals over 65, has been successful. By taking advice to locations where older people gather, such as the one-stop shop and aging well groups, they have seen significant success in helping people claim Pension Credit and associated benefits like council tax reductions.

The panel discussed how Neath has used lift data to overcome data protection issues and target eligible individuals with letters for Pension Credit. Ms. Newman suggested that the council could benefit from including information on Pension Credit eligibility on council tax bills, as older residents are more likely to respond to postal communications from the council than to online information.

Financial Capability and Advice Quality

The discussion touched upon the need for financial capability education in schools, with past funding for such sessions having a positive impact. The panel agreed that young people often lack basic financial knowledge, such as understanding bank accounts and debit cards.

A key concern was raised about the quality of advice provided by organisations. Ms. Newman stressed the importance of ensuring that advice is delivered by trained and accredited professionals to avoid causing further anxiety or delaying payments for individuals seeking help with forms like PIP or Attendance Allowance. She suggested that Swansea Council could ensure that advice providers are regulated or accredited.

Councillor Mair Baker noted that the lack of bank accounts is not limited to young people, with some older individuals also struggling to obtain them due to a lack of identification. She highlighted the need for financial education to start in schools, as family-provided education is not always sufficient. The panel agreed to raise this with the education scrutiny committee.

Barriers to Accessing Advice

Stigma, shame, and embarrassment were identified as major barriers preventing people from accessing financial advice. Ms. Newman emphasised that Citizens Advice offers support without judgment. She also noted that even within organisations designed to help, there can be judgmental attitudes towards those in debt.

While the drop-in centre at the store is helpful, some individuals cannot access it. Citizens Advice contracts with Care and Repair to provide home visits for vulnerable people. Efforts to establish advice sessions in schools to reduce child poverty have faced barriers, and Ms. Newman is still working to gain traction for this initiative.

Digital exclusion and lack of digital literacy are also significant issues. However, by developing digital tools like the self-help tool, Citizens Advice can reduce demand from digitally able individuals, allowing them to focus on those who are digitally excluded.

Lack of awareness and fragmented signposting can also be problematic. Citizens Advice aims to develop partnerships with other organisations to make direct referrals rather than just signposting, ensuring clients receive comprehensive support.

The discussion also touched upon the availability of refurbished computers for those who are digitally excluded, with awareness of schemes that provide such resources. However, the panel noted that digital literacy extends beyond social media use, and many individuals, both young and old, struggle with online forms and comparison sites.

Relationships with Partners

Citizens Advice has strong relationships with the voluntary sector and various council departments, including employability, council tax recovery, housing support, and welfare benefits. Their relationship with the Department for Work and Pensions (DWP) is described as civil but can be challenging, with issues such as difficulty in contacting DWP staff and procedural delays in mandatory reconsiderations and appeals.

Priorities for Financial Resilience

The panel identified several priorities for strengthening community financial resilience:

• Community Engagement: Collaborating with the council and other third-sector organisations to engage with communities.
• Awareness Raising and Education: Focusing on early intervention to prevent situations from becoming severe.
• Collaboration: Encouraging shared funding and services between organisations, viewing each other as partners rather than threats. Ms. Newman believes collaboration is the most significant practical investment and continuation needed to support Swansea residents more effectively.

Biggest Barrier to Improving Situations

Caroline Newman identified education as the biggest factor in improving people's situations, enabling them to manage finances better and be aware of available support. She acknowledged that redesigning the curriculum to include financial education would face resistance but noted a current review of the curriculum in Wales.

The panel also discussed the importance of getting people into work, highlighting examples where extended support for new employees significantly improved job retention rates. Citizens Advice has found that employing former volunteers has been a successful recruitment strategy, developing their skills and providing them with opportunities.

The inquiry is progressing, with a site visit to a food bank planned. The gathered evidence will be compiled into a final report to be presented to the cabinet, with a follow-up review to assess the implementation of recommendations.