Citizens Advice South East Wales (CASEW) is a new organisation established in 2022 by the eight local Citizens Advice services working in communities across South East Wales. By working together, people in South East Wales will have better access the advice they need, and individual Citizens Advice services in the region will have greater influence on policies and practices that affect people’s lives.

On Friday 20 January 2023, CASEW held an event at the Holiday Inn in Cardiff to present their first publication – a report into the effect of the Cost of Living Crisis.

Delegates from across the third sector, from government organisations, elected representatives and other policy makers were in attendance as Kate Henson, the Chief Officer of Citizens Advice Bridgend presented the report, which is available for download here.

Jane Hutt, the Minister for Social Justice, that households in Wales now more than ever need the services of Citizens Advice to understand what support they can claim to help with the cost of living crisis.

Dr Steffan Evans, Head of Policy (Poverty) for the Bevan Foundation, noted that some groups are feeling the pinch more than others. Households on benefits, renters, lone-parent households or households with children and people with disabilities are most affected by the cost of living crisis.

We were also lucky enough to be able to welcome one of our clients who talked about how the Cost of Living Crisis had affected them and their family.

Our Clients’ Stories

Whitney is a single parent who lives in a council property with her 3-year-old child. Whitney sought help from us after building up rent arrears, energy debts and catalogue debts. With the rise in living costs, she has also been struggling to manage month-to-month. Whitney works 8 hours per week and receives Universal Credit. Whitney’s rent is £542 per month, but her Universal Credit housing element only covers £510.95 per month. She has been unable to make up this shortfall, leading to her rent arrears. Whitney has received two Cost of Living Payments which she has used to make emergency repairs to her property. She has therefore struggled to pay her energy bills and keep warm.

Whitney’s adviser helped her to make a successful application to the Heat Fund which resulted in an award of the equivalent of £500 in fuel. We helped Whitney to contact her energy provider and helped to put her on the Priority Services Register. Whitney is also eligible for the Warm Home Discount Scheme, a £150 direct payment during winter, and a £200 payment from the Winter Fuel Support Scheme, which we assisted her with.

We also helped Whitney to make a Discretionary Assistance Fund application to help her buy a fridge freezer and a Discretionary Housing Payment to cover her ongoing rent liability. As a result of the advice provided, Whitney has secured an additional £1,800 in financial support which has had a significant impact on her health and well-being.

Alison lives with her husband, Ed, in a mortgaged property. Alison approached us for help because she had been struggling to manage the increase in daily living costs. Heating her home had become a struggle.

Alison lives with Motor Neurone Disease, which significantly reduces her mobility. She receives Personal Independence Payment with an enhanced rate of payment awarded and has accessed the Motability scheme to obtain a wheelchair-accessible vehicle. Alison is unable to work due to her condition and Ed is now her full-time carer. This has had a significant impact on their household income.

Our adviser completed a benefit check for Alison and identified that the couple would be eligible for Universal Credit, giving them an income of £1048.81 per month including extra support for disability, care and housing costs. A successful claim would also entitle them to the UK Government’s cost of living payment.

Our adviser also advised Alison that she would be eligible for Council Tax Reduction of £25.26 per week and that she could apply for Disability Band Reduction as she uses a wheelchair indoors.

Alison would also be eligible for VAT relief on items or services bought to support the needs of her health condition going forward. She could claim annual charitable grants from MNDA in order to support rising costs, including an emergency grant of £250.

As a result of our advice, Alison now knows what extra support is available. This has helped her manage household costs and reduced her stress and anxiety.

Peter lives with his partner and three children in a privately rented property. He is self-employed, but they also receive a top-up of their income from Universal Credit.

Peter contacted us for help with a £1,300 debt owed to British Gas, explaining that the family were struggling with the cost of living and was worried about how he would pay the outstanding amount. When he spoke to his supplier, they advised him that he might qualify for the British Gas Energy Trust if he sought debt advice.

Peter’s adviser was able to identify a range of support available to him and his family that he was not currently accessing. This included a successful application to the Heat Fund, resulting in an award of the equivalent of £500 in fuel. His adviser also assisted with an application for the Discretionary Assistance Fund and advice on the Cost of Living Payments, which resulted in an additional £324 in financial support.

Peter was also advised on his eligibility for the Warm Home Discount Scheme, receiving a £150 direct payment during winter and the Winter Fuel Support Scheme, receiving a £200 payment to help with the cost of fuel. He was also advised that he could apply to the NEST Scheme to help improve his home’s energy efficiency.

As a result of the advice provided, Peter and his family could secure an additional £1,124 in additional financial support. He is awaiting the outcome of the British Gas Energy Trust application, which we expect will be successful and write off the outstanding debt.

Key Findings

Households in South East Wales face some of the highest average rent costs in Wales, with a significant proportion of properties owned by private landlords. A single-income household earning Real Living Wage could be paying as much as 19-34% of their monthly income on their rent, or 24-44% if earning National Living Wage. Those on a lower income and therefore eligible for support with their housing costs could face a shortfall either as a social housing tenant due to under-occupying their property or as a private tenant because Local Housing Allowance rates have not kept up with average rent prices.

It is estimated that 45% of households in Wales will be classed as fuel poor following the increase to the Energy Price Cap in April 2022. Even with the 1 Energy Price Guarantee, single-income households earning National or Real Living Wage will be at risk of fuel poverty.

There is an increasing reliance on Foodbanks, which further demonstrates the inability of households in South East Wales to afford basic essentials. Between April and September 2022, 23,905 emergency food parcels were issued in South East Wales.

34% of the clients that accessed our services between September and December 2022 to request a Foodbank parcel, reported an income of between £1,000 and £1,999; evidence that those working full-time (37 hours) earning National or Real Living Wage are facing destitution.

Since December 2020, CASEW has seen a 1,500% increase in clients seeking advice on accessing charitable support and Foodbank vouchers. There was a 115% increase since April 2022.

Fuel prices peaked in July 2022 at 48% higher than the previous year, adding 3 to the increasing financial pressures and leaving some not knowing how they will afford to commute to work.

CASEW has seen a 300% increase in clients who are self-disconnecting from their fuel supply due to a lack of credit on their energy meter or account since April 2022. We predict that in January 2023, some prepayment customers will need to find an estimated £360 a month for their energy or risk being cut off.

The Impact of Our Advice

September to December 2022, at a glance…
We are seeing the Cost of Living crisis deepen as we enter into 2023, leaving the most vulnerable people in our communities at crisis point. We are seeing clients in hardship daily, leaving our staff working tirelessly to try to help.

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Over 50,000 clients been seen by CASEW
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CASEW helped increase our clients’ income by over £25 million
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Nearly £2.5 million of debts have been managed by CASEW
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Over 197,000 issues have been dealt with by CASEW

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