A new telephone service to give local people direct access to debt advice has opened to help the rising number of people struggling to make ends meet.

 The new debt line, operated by Sutton Citizens Advice Bureau (CAB) and part funded by Sutton Council, provides information and advice on issues including housing, welfare benefits, employment, debt, and relationship breakdown.

It is in response to an increasing amount of enquiries related to welfare benefits. In 2010/11 less than 1 in 5 (19%) enquiries received were about welfare benefits, but new figures show that this increased to more than a quarter (26%) in 2012/13.

The number of people using Sutton Foodbank has also steeply risen as the foodbank’s clients have more than doubled from 538 the previous year to 885. Over a third (36%) of those fed are children and in 2013 there was an 89% increase in the number of children receiving emergency food packages compared to 2012.

Sutton Council hopes the new helpline, combined with the Citizens Advice Bureau, Sutton Food Bank and the CMS Credit Union will encourage people to seek free financial advice and support rather than turning to unscrupulous pay day loan companies.

Councillor Jayne McCoy, Chair of the Housing, Economy and Business Committee, said:

“It is clear that some of our residents are struggling to make ends meet. We believe in a fair borough that supports people through tough times and that is why we are providing services such as the new debt line.

“The first step for anyone worried about their finances is to pick up the phone and get free advice. Often some simple financial planning can make a world of difference, but if further support is needed, they can be put in contact with the Sutton Food Bank or the CMS Credit Union.

“On no accounts should anyone use payday loan companies or loan sharks for a short term fix.”

Steve Triner, Chief Executive of Sutton CAB, said:

“We know people find debt problems very stressful. In fact research has shown that debt can be both a cause and a consequence of mental health problems.

“We have therefore taken steps to enable people needing debt advice to get access to our debt advice team as quickly and as easily as possible.”

The CMS Credit Union is a savings and loans co-operative run for and by its members on a not-for-profit basis. Membership is open to anyone who lives, works, studies and/or volunteers in the London Boroughs of Croydon, Merton or Sutton.

The amount lent out by the credit union has grown immensely over the last year. The value of loans issued from July 2013 to December 2013 increased by 48.5% compared to the previous 6 months. There was a surge in the total value of loans issued in November and December 2013, which is attributable to the Christmas season. The value of loans issued in December 2013 increased by almost 40% compared to December 2012, from £87,832 to £121,707. The average value of each loan is around £1350.

Helen Mason, the CMS Credit Union Operations Manager, said:

“The CMS Credit Union offers a safe and confidential way to save money, and a friendly way for residents to discuss the different loan options on offer that members can afford.

“Local residents can visit the outreach service in Sutton between 10am and 3pm every Wednesday at Sutton Gate and every Friday at the Civic Offices.”

Sutton Foodbank has seen record growth in the numbers of people needing support in the last year. The charity provides emergency food to people who are referred by frontline care professionals such as Sutton CAB, Job Centre Plus, health workers and children’s centres.

Last year almost a third of clients (31.16%) attending the food bank cited benefits delays and almost one in five (18.26%) cited benefit changes as the key reason they needed emergency assistance, suggesting that changes to the welfare system are plunging people into crisis.

Mark Tomlinson, Project Director of Sutton Foodbank, said:

“Food and fuel prices above the rate of inflation coupled with low incomes and the impact of benefit changes/delays are adversely affecting a small but significantly increasing number of our residents.

“Residents in need should contact a frontline care professional or agency who can assess the level of support required. If appropriate, they may then refer resident to Sutton Foodbank.”

The CAB can be contacted by telephone on 020 8405 3552.

The CAB takes calls between 10.00 am and noon and 1.00pm to 3.00 pm five days per week and can refer clients to one of their debt specialists but people phoning on Tuesdays, Wednesdays and Thursdays between 10am-12pm will get direct access. Residents can also contact the CAB online at www.suttoncabx.org.uk.