People working full time jobs seeking financial help on the Yorkshire Coast
Demand for support is continuing to grow
It is claimed many people working full time jobs on the Yorkshire Coast are seeking financial help as they cannot afford to pay for everything.
Research shows demand for debt advice is on the rise as one in five adults were finding bills and credit commitments a heavy burden.
Claire Daniels, money advice manager at The Rainbow Centre in Scarborough, said: "We're always busy but I think what's changed is the type of people that are coming to us for help, not just for the food parcels and help with utilities but also for debt advice. We're getting a lot more people who are working and have mortgages but just can't afford to pay for everything.
"There's been a few changes in the legislation recently but there's still little help for people with mortgages. It's those people with jobs, those with mortgages and those that used to donate to us are now the ones needing to come in for help which impacts us massively, because it means we're not getting as much in the way of donations as well.
"The aim is to not have foodbanks and the aim is to not have to have lots of debt advice provision but it's getting worse and at the moment, it just looks like it's going to get even more difficult. We're obviously concerned about capacity because there aren't many of us in Scarborough that does face-to-face debt advice and the need is just getting more and more pronounced.
"Ultimately the Government has to take some responsibility for ensuring that everybody is able to live so benefits haven't risen at the same rate as costs have risen, so people on benefits could be getting around £300 a month and they've got to pay £200 utility bills out of that and rent top up.
"Rents have gone up massively but the amount of you get from benefits hasn't gone up in line with it. There's all these sort of things that haven't gone up in line and we're seeing with all these strikes, pay rises haven't gone up in-line with inflation and people have got to be able to live. Most people just don't have savings anymore or have used them, so we're not in a great position."
Financial Conduct Authority survey
As part of its Financial Lives survey, the FCA also found that the cost of living is having an impact on people's mental wellbeing.
Around 28.4 million people in January 2023 felt more anxious or stressed due to the rising cost of living than six months earlier, the regulator said.
Some 28% had lost sleep due to money worries.
One woman told the survey she had used credit to pay for car repairs, home insurance and food shopping.
Another said she had used all her savings to fill her oil tank and she relied on oil to heat her home.
Another woman said she had taken her son off her motor insurance.
A man told the survey he had cancelled his insurance and social outings to make ends meet and was also eating less.
And a woman said she had been seeing less of her family because of the cost of driving long distances to see them. She had also stopped playing sport and participating in clubs.
Sheldon Mills, executive director of consumers and competition at the FCA, said: "Our research highlights the real impact the rising cost of living is having on people's ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice.
"If you're concerned about your finances, you do not need to worry alone. We've told lenders that they should provide support tailored to your needs.
"And, if you find yourself in debt or want to know more about how to manage your finances, free expert advice is available.
"We will continue to act quickly to make sure financial firms help their customers who are facing financial difficulty or are worried they might be soon."
The FCA will be introducing a new consumer duty in the summer. The duty will require firms to act to deliver good outcomes for consumers and make sure that they are properly supported while using a financial product or service.
The full Financial Lives 2022 survey will be published later in 2023.