Parents cut back on children’s Christmas presents & turn to debt to get by this winter

UK families are being forced to cut back on Christmas presents and basic essentials such as heating, and are falling into debt to buy warm clothes and food in a bid to make ends meet this winter, warns Save the Children.

A new survey by the children's charity, conducted by YouGov, has revealed that the majority of parents in the North (61%) earning below £30,000 (£8,000 above the average UK income) are going to struggle to get by this winter with 52% turning to high interest debt such as doorstep lenders in order to cover the costs. 51% say they will buy fewer Christmas presents for their children.  The majority expect to borrow up to £500 to cover the costs of winter and say that it will take them more than a year to repay it. For many families their greatest worry is that they will struggle to pay it back (32%) and that they will pay back a lot more than they borrowed (26%).

For those living in poverty (earning less than £12,000) 76% say they will struggle to get by this winter and 70% say they are going to borrow money from high interest lenders in order to get by. Many families, particularly those on a low income, are excluded from mainstream credit such as banks and building societies and instead are turning to high interest alternatives such as door step lenders and catalogues.  Families on low incomes are going to be forced into debt to pay the fuel bills (34%), buy winter clothing such as warm coats and shoes (28%) and other essentials including food (29%). The majority of those on the lowest incomes (62%) say they will buy fewer Christmas presents for their children this year and in addition many will also cut back on other winter essentials.  Parents also said they were borrowing more money this year than last year because of the recession (21%). 

Fergus Drake, Save the Children’s UK Director, said:- "It is shocking that so many families have to borrow money to pay for day-to-day essentials such as heating and food. For some families even borrowing alone isn’t enough, with many parents forced to cut back on Christmas presents as well as winter clothes. Even worse, many parents, especially those on a low income, have little choice but to borrow from high interest lenders pushing them further into debt and poverty. Families cannot continue to scrape by like this.

The government cannot allow high interest lenders to plug the income gap of families who are struggling to get by. We want to see new rules obliging banks to do more to help the poorest families who are excluded from mainstream credit have a source of affordable borrowing. It's about time that the banks, whose industry has been saved by the taxpayer, put something back and it should be Britain's poorest children who benefit."

Save the Children is calling for the Government to introduce new rules that would oblige high street banks to invest money in providing affordable loans to families who are excluded from mainstream credit. Drawing on the US's Community Reinvestment Act, banks would benefit in business terms if they provide resources to credit unions who give affordable loans to the poorest families.

Save the Children is calling for:-

► The Government to introduce a Community Reinvestment Act to ensure that high street banks have to help provide affordable credit to the UK’s poorest families.

► A reform of the Social Fund to ensure that it is more accessible to the people who need it and that it has enough resources to do so.

People can show their support by texting DEBT to 84880 (charged at normal standard rate) or adding their name to Save the Children's online petition on: www.savethechildren.org.uk.

Simple steps to stay warm this winter

WITH the latest figures from the Office of National Statistics showing the highest number of excess winter deaths for 9 years, Age Concern and Help the Aged are urging older people to make sure they are fully prepared to beat the threat of fuel poverty and keep warm during the colder winter months.

The Charity, in partnership with British Gas, has produced a free Information Booklet offering essential advice on managing fuel bills, insulating your home and applying for benefits, as well as a free thermometer to help monitor room temperature. The Booklet includes the following advice about keeping out the cold:-

Check what you’re entitled to:- contact a local benefit advisory service to see what financial support is available. Older people who receive a low weekly income may be entitled to Pensions Credit, Community Care Grants and Budgeting Loans (available for items such as bedding and heating) and Crisis Loans which may occasionally be given for fuel costs.

Insulating your home:- this can have a significant impact on energy bills. Loft insulation will prevent heat escaping through the roof and insulating the hot water tank will slow down the amount of heat loss.

Keep moving:- Any physical activity from walking to the shops to doing housework is good for the circulation and warms you up. If it’s very cold outside, try to stay active indoors.

Stay warm:- the recommended room temperature is 21ºC, but older people should not hesitate to increase this should they feel cold. Anyone exposed to a cold environment for a long period of time is at risk of hypothermia.

Older people who are concerned about weathering the winter are advised to call Age Concern and Help the Aged on:- 0800 1692 081 to order a free Information Booklet and find out what support is available.

Our sub-editor's comments:- "I would like to point out the Irony of the 2nd point, if you could afford to insulate your home then you probably wouldn't have the problem of not being able to afford to heat it. Now as it happens there are schemes out there to help Older people to get their home insulated for free or a vastly reduced cost and they should ask their energy supplier about them."

"Beyond Capital of Culture: A New Dawn for Tourism in Liverpool"

DUE to unforeseen circumstances, the conference called "Beyond Capital of Culture: A New Dawn for Tourism in Liverpool", that was due to be held on 3 December 2009 has been postponed. The Waterfront Conference Company would like express its sincere apologies for any inconvenience this may cause. The conference would have covered the subject of impact Capital of Culture year has had on increasing tourism in the city and its implications over 2009. Also it was also set to look at how to help Liverpool and Merseyside through the economic downturn and to help it develop the new tourism strategy for the City and the wider region. The Waterfront Conference Company said that:- "We are how now looking at running it as a Merseyside Tourism development event next year. We are looking for a new venue to host it in and dates. We had a fantastic line up of guests and also good interest from the public and private sectors that we hope to have next year if we can run it. We would like to thank all the people who have helped by supporting and advertising the conference. This postponement has unfortunately happened due to circumstances beyond our control. We wish everyone a happy and safe New Year and, fingers crossed and with everyone’s continued support, we will hold the event next year!"