NEARLY half a million Scots are left without any money after covering essential monthly expenses, even before soaring energy bills kick in, a charity has found.
Charity Citizens Advice Scotland (CAS) has warned people are facing a “financial cliff edge”.
A new analysis revealed one in 10 people north of the Border are penniless after spending on taxes, housing, utilities and food.
It estimates that this works out to around 452,958 people based on Scotland’s population. A further 18% of those polled said they had less than £125 left over each month after paying essential expenses.
CAS said the figures taken together means a total of 1.2 million people are left trying to survive on less than this sum every month.
The charity is launching a new campaign tomorrow Our Advice Adds Up, encouraging people to seek advice if they are struggling with the cost of living.
CAS chief executive Derek Mitchell said: “People are facing a devastating financial cliff edge this autumn, as energy bills soar and inflation shows no signs of slowing down.
“It’s important to understand what this actually means for people. Half a million people have nothing left after covering essential bills – they literally cannot afford another big increase in bills and prices.
“Over More than a million people have less than £125 left over – and next month average monthly bills are going up by £169.
“That’s why we are this week launching Our Advice Adds Up to encourage people to seek advice if they are struggling with the cost of living.
“People can get help from their local CABCitizens Advice Bureau, or check online resources like our public advice site, www.moneymap.scot or www.checkmycounciltax.scot.”
Mitchell encouraged people to seek help, saying CAS advisers deliver “real results”.
“One in five people who seek advice see some sort of financial gain, and the average value of that gain is over more than £4400.”
He added: “That can be life-changing money for people, our advice is free, confidential and impartial, we’re for everyone, regardless of background and circumstance so our message to people is to seek advice – it can really add up.”
The stark findings by CAS, based on polling of 1416 people by YouGov, come even before energy bills are set to soar from October.
Regulator Ofgem has confirmed the energy price cap will rise by 80%, which will mean the average household’s yearly bill will go from £1971 to £3549 from October.
Another survey last week found more than two-thirds of UK parents are worried about paying for food, energy and fuel over the next year and are being “pushed to the edge”, research suggests.
Parents described feeling “overwhelmed”, a “let-down” and a “failure” as cost of living pressures make it increasingly hard for them to afford essentials, research for Nesta found.
The Resolution Foundation also warned real household disposable incomes in the UK are on course to fall by 10% over the next two years this year and next, and that the number of people living in absolute poverty is set to rise by three million, to 14m people in 2023-24, unless policy or economic forecasts change.
