ABERDEENSHIRE Introduction

When considering Aberdeenshire, it is important not to discount Aberdeen City itself, as there are many and significant ‘knock on’ factors which need to be considered.

Aberdeenshire itself has a relatively buoyant economy with relatively low rates of unemployment. There have been no major closures in recent times; the oil and service industries being key. However, whilst the economy may be buoyant, the cost of living in Aberdeenshire is higher than other rural communities, as a result of its close proximity to Aberdeen City.

At the same time, it was noted that those who experience the most difficulty with debt are likely to be in seasonal employment, particularly fishing and agricultural workers who, in addition, may suffer increased incidence of injury at work.

4.1.1 Local Data Analysis

Total council rent arrears in Aberdeenshire at 31st December 1999 was £514,000. This was made up of 3,211 current tenants and 1,747 former tenants with the level of arrears equivalent to around 6 weeks rent. As a proportion of standard rental income the arrears were 1.93%.

ANARAK estimates 7,209 advice episodes for Aberdeenshire. The cost indicated by ANARAK is £266,000 equivalent to 51% of the total amount of council rent arrears.

Possession Orders for property granted 1994 1999 Increase 1994-1999

% Increase 1994- 1999

Aberdeenshire 69 140 71 103

The Money Advice Scotland Directory lists 3 agencies: 0 local authority, 1 CAB and 1 other. The mapping survey includes 20 respondents: 16 voluntary organisations, 1 statutory organisation and 3 private sector organisations. Not all respondents will necessarily be based in the local authority area, nor will they all be all specialist provider of the sort included in the MAS Directory.

The Nature of Housing Related Debt

In common with other areas, it is difficult to separate housing from other debt, with difficulties relating to housing often occurring as individuals prioritise consumer and immediate repayments. Respondents in the Study reported increased concern about the level of rent arrears, highlighted in an Accounts Committee report. One respondent noted that the timing of the Study, around and immediately post-Christmas, may have skewed this. Having said that, however, the issue remains the same that people are trying to balance priorities, including credit card repayments.

Delays, particularly in the assessment of Housing Benefit applications and in the payment of any benefits due, contribute towards longer term problems. This issue should be seen in the context of the DSS proposals regarding housing benefit administration referred to in this report.

In addition, one respondent noted that problems are occurring as people re-mortgage their homes and/or take out secured loans at a discounted rate. Whilst this may provide a short term help with an individual’s finances, difficulties can occur when discounted rates are discontinued.

Whilst recognising that some issues do occur for home owners, respondents identified that housing debt most often concerned rent arrears and was most often found with those who do not have the resources to get out of difficulty. Principal issues are, therefore:

• Rent arrears • Court action • Eviction orders

• Unclaimed housing benefit • Council tax difficulties • Re-chargeable repairs.

Concern was expressed that it appears that there is a trend by local authorities to push things as quickly as possible toward eviction, rather than looking to other parts of the Council to minimise crisis cases.

The Response to Housing Related Debt in Aberdeenshire

The local authority’s Housing and Social Work department has a system whereby housing visitors undertake fieldwork with individuals. If a tenant is identified as ‘in arrears’ three letters are sent, the last of which initiates legal action. Housing visitors visit the individual to gather

information to give information and signpost to agencies that could be of help. It should be noted that housing visitors are not trained as debt counsellors nor do they provide a money advice service. When speaking to tenants, advisors seek to make an arrangement with the tenant to address the arrears. Assuming that the arrangement is kept to, no further action is taken; administration and Finance monitor and manage the arrears.

Other than Aberdeenshire’s housing advice provision, we understand that the only other specialist housing advice provider is Shelter. Based in Aberdeen City, Shelter reports that most of its contact with Shire clients is provided by telephone and letter.

There are a number of CABx throughout Aberdeenshire which report providing information and casework services to individuals in their communities. However, we note a number of features which may inhibit CAB’s ability to address housing related debt issues, including:

• CABx perceived or actual independence. There has been work undertaken to provide specialist training to local CABx although it was noted that it can be difficult to challenge authorities which are a key source of funding to local bureaux (this view is strongly disputed by Citizens’ Advice Scotland (CAS) which notes that CAS has in place rigorous procedures to ensure that individual CABx do not breach the principles of independence and impartiality);

• Local bureaux may not be able to undertake representation. It is suggested that where it is not possible to follow a case through to its own conclusion, it may be a more profitable use of time and resources not to take up the case in the first instance. In addition, although this is not particular to CAB provision, the difficulty of ensuring confidentiality in small communities was identified as a particular concern. In connection with this, and in an attempt to make resources more available to the widest possible number, it was suggested that call centres might provide a useful component of future provision.

It was reported that there is a lack of representation in the South of Aberdeenshire, and that Consumer Protection no longer provide debt advice.

A Little Bit of Intervention

In common with other parts of the Study respondents noted that a little intervention, made early, can make a lot of difference.

In Aberdeenshire, this was undertaken both with individuals and, where possible, with agents e.g. the Courts. Shelter endeavours to attend court, even those a long distance from its base, as part of a ‘strategy’ to enable the courts to know that resources exist. Further, it was noted that the more an agency (both Court and local authority) is seen to do with an individual, the more the agency’s competence is recognised. The respondent felt, therefore, that such an investment of time was useful, although it also noted that strategic and policy related work suffer as the demand for direct services increase.

4.1.2 Issues for Consideration

In addition to the issues outlined above respondents in this locality made the following suggestions:

• Existing services should be better publicised, particularly with social rented sector tenants.

• Shelter was identified as a key agency to provide support to individuals. It is able to address a range of issues and there is a developed relationship between the local authority and Shelter. Similarly, Shelter identifies that it is working to the same ends as the local authority. This occurs to a lesser extent with local advice centres.

• There is a need to share information and good practice more broadly, particularly with local advice centres.

• Social policy work with the local authority, for example better considered Housing Benefit and Council Tax forms, can improve matters for individuals and local authorities.

• Local voluntary agencies could take on casework but require resources and the support of CAS and SHAS or others.

• ‘Benefit and debt advice’ go hand in hand. Solicitors should be better trained to deal with welfare benefit issues.

• It was reported that Arrears teams work in isolation and do not have a full picture of the financial situation of a family or individual that in turn can have an affect on their ability to address arrears.

4.2 THE BORDERS