Elin Williams from the debt advice charity, Frontline, offers this warning to anyone on a low income. Ed
Following the increase of the national minimum wage, to £7.20, Frontline Debt Advice is concerned by the Isle of Wight Council’s handling of this situation and warns all those on a low income to take notice of income changes over the next few weeks.
How the wage increase will impact workers
This increase is likely to have impact on Housing Benefit, Council Tax Support, Tax Credits and a host of other essential expenditures.
The Council have indicated that they would like claimants to inform them as soon as possible of their new hourly rate and then provide either five (weekly paid) or two (monthly paid) wage slips to demonstrate the new level of income. This means a delay of two-three months for claimants to know what level of assistance they will receive.
During the same time their income will be in flux and they are unlikely to be able to save the necessary funds to ensure that they can repay any overpayments, leaving the most vulnerable in a precarious situation.
Spiralling of financial hardship
The poorest twenty per cent of people are already experiencing a real term loss of income of 11.6%, with an increase of utility costs and changes to tax credits and other benefits following this rise there are concerns that they may now ‘spiral’ financially and struggle with these changes.
With 13 Isle of Wight residential zones within the 20% most deprived throughout the UK Elin Williams, Director of Frontline, has seen the impact of these changes and warns,
“Life will be incredibly tough for our most vulnerable during this difficult transition.
“Anyone who feels they may be affected by these changes should contact the Council as soon as practical to inform them of any financial changes.”
Isle of Wight Council may be contacted on 01983 821000 or for Council Tax Support on 01983 823901 and by email [email protected]
Image: Sander van der Wel under CC BY 2.0
