A new survey for Citizens Advice Scotland by YouGov has revealed that one in five people in Scotland are running out of money before payday.
The research showed that nine per cent of people always run out of money before payday and a further 11 per cent said they run out most of the time - payday includes wages, benefits and pension payments.
The figures are five per cent higher than the same period last year and the news from Ofgem today that the price cap review in October could now be as high as £2,800 is only going to put even more pressure on household finances.
Citizens Advice Scotland is warning that the rising cost of living is leaving many with no option but to take on debt, putting more people at risk of poverty and leading to a higher demand for financial help.
The charity is encouraging people to get advice online or in person from the Citizens Advice network sooner rather than later.
Citizens Advice Scotland Financial Health spokesperson Myles Fitt said: “One in five people running out of money before pay day is extremely concerning, given that these figures have seen an increase since 2021.
“The cost of living crisis is with us and these figures are an early indicator. With soaring energy bills and prices continuing to rise in the shops people are facing increasingly difficult, and in some cases impossible, choices on spending.”
Myles highlighted how incomes aren’t keeping up with rising costs and said that social security benefits fell in real terms this year, on top of the removal of the £20 uplift to Universal Credit in October.
He said: “If people are worried or struggling with money we would encourage them to seek advice from the Citizens Advice network. That can mean our online self-help tools like moneymap.scot or our public advice site, or from a local CAB.
“We would like to see policy-makers take every measure they can whether large or small to help blunt the impact of the cost of living because it will be through cumulative and collective efforts that we can help as many people as we can to get through this crisis.”
One in five people saw a financial gain after getting free, confidential and impartial advice from a CAB last year - find out more online here.
To keep up to date with the cost of living crisis, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
