In the wake of the financial and economic crisis, London's free debt advice services have seen the demand for their help soar to unprecedented levels since 2008 as more and more people face unemployment and difficulties in accessing credit or dealing with their existing debt and creditors.
Based on the London Debt Summit last summer and the report 'Up to our neck in it', the London Debt Strategy Group was established by Toynbee Hall and London's Deputy Mayor Richard Barnes to consider strategic and practical solutions to the problems facing Londoners in debt.
The data which the Debt Strategy Group can draw on are the product of a unique collaboration by London's biggest providers of free debt advice, including Capitalise, Community Links, the Citizens Advice Bureaux, and the Legal Services Commission.
This provides the most up-to-date and comprehensive analysis available. Key facts to note:
* Legal Services Commission has seen a 20% increase in new debt cases that they have funded in London over the last year
* The advice sector as a whole has seen an increase of 22% in new debt advice cases in London from April 08 to April 09
* Interestingly Capitalise is now seeing significantly fewer financially excluded clients (as measured against the Government definition) than 12 months ago.
This continues the trend of a changing caseload for Capitalise made up of increasing numbers of low waged homeowners accessing services and a consequential reduction in the number of non-working social tenants accessing services - the crowding out phenomenon highlighted at the Debt Summit in June.
One of the key questions now is to try and find out what has happened to this traditional client base. Capitalise would be pleased to hear from anyone with additional data or experience to share: 020 7392 2953 or email: capitalise@toynbeehall.org.uk.
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