An innovative approach to addressing public debt in Tayside has been identified as a potential solution to child poverty in Scotland. The Aberlour charity conducted a three-year pilot program called Family Financial Wellbeing Tayside, which focused on paying off public debts like council tax and rent arrears for families in need.
The program provided an average of £2,700 per family through its hardship fund, offering direct assistance to help families overcome debt. Additionally, expert advice was offered, with the support of three local councils, to explore how debt recovery practices could be improved to avoid pushing families further into financial hardship while repaying their debts.
One of the key findings of the pilot program was the systemic issues in debt collection practices, particularly the lack of coordination among public debt collectors. This often led to multiple agencies deducting money from wages and benefits simultaneously, exacerbating financial difficulties for disadvantaged families.
In response to these challenges, Dundee City Council introduced a new debt collection charter to provide debtors with a single point of contact for managing debts owed to various departments.
Sallyann Kelly, CEO of Aberlour, emphasized the positive impact of the pilot program on families, highlighting a reduction in the number of children at risk of entering care and an increase in parents’ access to employment and education opportunities. By relieving families of debt burdens, the program allowed them to focus on future prospects rather than constant financial worries.
Furthermore, the program aimed to engage with public bodies involved in debt recovery to encourage a more compassionate and humane approach to debt management. By fostering discussions and collaboration among stakeholders, Aberlour sought to develop strategies that prioritize the well-being of families while addressing debt recovery.
The success of the pilot program in Tayside has prompted calls for similar initiatives to be implemented across Scotland. Martin Canavan, head of policy and participation at Aberlour, emphasized the importance of changing debt recovery practices to alleviate child poverty. He suggested that local councils can play a significant role in improving debt recovery processes without the need for national legislation, ultimately benefiting families and communities.
In conclusion, the Tayside pilot scheme offers a valuable blueprint for addressing child poverty by reforming debt recovery practices and providing direct assistance to families in need. By prioritizing compassion and collaboration, public bodies can work towards creating a more supportive and sustainable approach to debt management, ultimately improving the financial stability and well-being of vulnerable families across Scotland.