As we head into the October half term holidays across much of Scotland next week, new data has emerged showing the true extent of the cost of childcare in Scotland.
The Prince’s Responsible Business Network highlights that as much as 51% of a parent’s salary is spent on a full-time nursery placement where they have children under the age of two. This equates to more than half the pay of an average adult in Scotland based on the median weekly take-home pay of a working-age adult in Scotland being £418p/w.
Additional research published by workingmums.co.uk, a job board for professional women in the UK shows that:
- 58% of mums were looking to change jobs, increase their hours or do an additional job
- 51% of mums said the cost of living was affecting their childcare decisions
- 49% said lack of childcare was stopping them working more hours
- 49% had not had a pay rise in line with inflation
- 10% have £20,000 or more worth of debt
- Alarmingly, 7% are relying on food banks to feed their family
Whether in a relationship or a single parent, the ability of mums to earn more money for themselves will always be limited by access to childcare and the support network around them. Quite simply, increasing hours isn’t possible without childcare support.
Families with children in all age groups are feeling the impact of the cost of living crisis in Scotland.
As reported by STV earlier this year, many children from low-income families have returned their lunch money to their parents in order to pay for household bills. A further £1m is owed by pupils in the final years of primary school as parents struggle with the cost of living with local authorities using sheriff officers to reclaim the sums owed from their parents.
One in five adults is behind on at least one household bill
Research by the debt charity Money Advice Trust found that 45% of families with children were reported to be in debt.
However, problem debt can happen to anyone with many people with different circumstances affected too.
21% of UK adults are estimated to be behind on at least one household bill, with as many as 14% having sold their personal belongings just to get by.
The same survey data highlighted that 29% of UK adults are using their credit cards to pay for essentials whilst 10% are borrowing from friends and family.
Whether a person borrows from a credit card lender, or from a friend, a family member or a work colleague the likelihood is that the debt will continue to escalate until it becomes unaffordable.
Help with unaffordable debt in Scotland
The cost of living crisis in Scotland continues to impact the lives of many people as it has done for some while now. In a survey of existing Trust Deed Scotland customers in February 2022, 21.62% reported that the cost of living was the event that triggered them to seek help. Typically divorce and separation, poor money management and ill health may be among the most common reasons that people seek help with their debts.
Undoubtedly, if the same survey questions were asked of our latest customers who sought help from us between March 2022 to October 2022 this percentage will be significantly higher.
An ONS survey from April to May 2022 found that 77% reported feeling very, or somewhat worried about the rising costs of living, 90% of parents with a dependent child aged 0-4 years said they were somewhat worried about the rising cost of living. 80% of parents with a dependent child aged 5 years and above said they were very/somewhat worried about the rising cost of living.
With energy bills set to increase this month, you may be worried about how you’ll be able to pay for your other household bills like childcare, food, rent or mortgage and things like clothing.
In the same survey of our customers earlier this year, respondents were asked how long they waited before they asked for help with their debts. Whilst 17.61% got help straight away and a further 24.98% got help within a year, unfortunately, many people with unaffordable debt in Scotland waited longer. 29.33% waited 1-2 years, 14.25% waited 3-4 years and 13.82% waited over 4 years.
The biggest reason why people put off seeking help with their debt sooner than they did was that they felt ashamed or embarrassed about their debt. 31.89% responded with this answer.
Trust Deed Scotland® provide tailored debt advice on all available debt solutions in Scotland. We know that asking for help is a big deal and we always urge that people read our Trustpilot reviews firstly as the 6,000 reviews from customers written in their own words can help empower you to seek help if you need it and to understand that you are not alone and that others are in the same position as you.
We firmly believe that reading our customer reviews is the best way for people to understand who we are, what we do and why we can be trusted more than anyone else. Indeed, we’ve got more 5 star Trustpilot reviews than all other Trust Deed providers combined.
Our experienced debt advisers make sure that our clients get personalised debt advice based on their affordability, lifestyle and needs.
☑️ Unaffordable debt written off
☑️ Reduced monthly payments
☑️ Interest and charges frozen
☑️ Home and car protected
☑️ Creditor contact reduced
To find out more about the Advantages & Disadvantages of all formal debt solutions in Scotland, get started now by trying our Trust Deed Wizard® tool, or by calling us on 0141 221 0999.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free advice also available from moneyhelper.org.uk.