Rising living costs are leaving thousands of Welsh families struggling to cope financially, with many cutting back on food and heating to try to make ends meet, according to new research published today.

The shocking figures, published by Citizens Advice Cymru and Shelter Cymru, were announced by Llanelli MP Nia Griffith at the National Eisteddfod in Carmarthenshire.

The research reveals that seventy per cent of Welsh adults are worried about the rise in the cost of living and more than half (59%) are struggling to keep up with bills and credit commitments.

The price of food, petrol and energy are particular concerns; nearly half of those questioned (48 per cent) said that they were consciously cutting back on their use of gas and electricity due to the current economic climate, 37 per cent are spending less on groceries and nearly a quarter (23 per cent) are reducing their car use.

Meanwhile more than half (55%) of those who pay rent or a mortgage struggle with their payments, with 18 per cent struggling constantly. This figure has risen over the last year – a similar survey in July 2013 showed that 12 per cent struggled constantly with paying their rent or mortgage.

Worryingly, thousands of households appear to have no financial safety net, with 25 per cent of those currently in employment saying that they would not be able to pay their rent or mortgage at all if they lost their job.

In last year’s survey, this figure was 17 per cent and the charities suggest that the increase could be a result of people no longer being able to put aside money for emergencies.

John Puzey, Director, Shelter Cymru, said:

“We are still clearly a very long way from an economic recovery in Wales. Not only are thousands of families struggling to cope financially, but our research shows that the number of people finding themselves in serious difficulties is increasing year on year.

“Cutting back on food and heating in order to meet the rent or mortgage can only ever be a short-term measure. A severe winter or an increase in interest rates could be all it takes for families to hit crisis point and potentially lose their home.

“Besides the devastating impact that this has on the health and well-being of individuals concerned, especially children, dealing with the outcomes of homelessness has significant financial impacts on local services, which themselves are experiencing severe funding cuts.”

Fran Targett, Director, Citizens Advice Cymru, said:

“Every day, our bureaux in Wales are seeing increasing numbers of people who are struggling to maintain a decent standard of living in the face of welfare changes and rising living costs.

“Many families are frequently having to go without basics, such as food, adequate heating and clothes in order to keep up with rent payments and meet essential households bills.”

Launching the report, Nia Griffith MP said:

“This report is absolutely horrifying, and it brings home the reality of just how close to the breadline thousands of people across Wales are. People are really struggling with the cost of living crisis, and are desperately trying to cut back on essentials like heating and eating.

“Citizens Advice and Shelter Cymru are on the frontline, and they see the fear and misery on people’s faces every day. I would like to thank them for producing this report which should act as a wake-up call: it is clear evidence that we need far-reaching changes to tackle this situation, such as a freeze on energy prices, a commitment to bring the minimum wage up to 60 per cent of average median earnings and sensible benefit reform that does not leave vulnerable people without the help they need.”

The charities say that the research highlights once again the vital role that independent advice services have in helping people to manage debt and housing problems, and the need for these free services to be safeguarded and promoted.

Fran Targett added:

“Citizens Advice and Shelter Cymru have demonstrated time and again the value of free independent advice, both in supporting people in difficulties and in reducing pressures on local services. This research shows that we have never been more needed.”

Notes
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1003 adults. Fieldwork was undertaken between 23 – 26 July 2014. The survey was carried out online. The figures have been weighted and are representative of all Welsh adults (aged 18+).
2013 study: Same methodology, 1,009 adults, conducted online between 16th – 18th July 2013.

Citizens Advice Cymru
Citizens Advice is the largest, integrated, third sector provider of advice in Wales, operating from over 240 community premises in Wales. With bureau services in every local authority area in the country, we help people to resolve their money, benefit, legal, employment and other problems.

Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends.

This year, the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014. Contact the press office to find out more.

Shelter Cymru
Shelter Cymru is Wales’s People and Homes charity. We have offices all over Wales and prevent people from losing their homes by offering free, confidential and independent advice.

Last year we helped nearly 15,000 people, preventing homelessness in 89 per cent of the cases where it was faced, while more than 140,000 people visited our website looking for help.