London Debt Summit 2009
Capitalise, in partnership with the Greater London Authority and The Mayor of London, hosted London’s first Debt Summit on Monday 22 June 2009 in response to the changing levels of debt facing Londoners during the recession, and the impact this is having on free face-to-face debt advice services.
The event initiated a cross-sectoral response to addressing the current and forecasted need amongst Londoners for debt advice during the current recession, and in the longer term.
The speakers at the event included:
Richard Barnes, Deputy Mayor of London, opened the London Debt Summit and presented the challenges facing Londoners and advice services during the economic downturn.
Merrick Cockell, Chairman of London Councils, presented London Councils and the London boroughs approach to meeting the increasing demand on services.
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Mubin
Haq, Policy Director of the City Parochial Foundation, spoke about the
different opportunities for funders to support organisations in
delivering services where there is a need and demand.
Liz Barclay, journalist and Radio 4 presenter, ran a highly participative discussion with the audience and speakers.
The Report
Earlier in the day, a presentation by Mark Allan, Head of Programmes, on the Capitalise report, Up to your neck in it, revealed a clear and challenging picture of debt in the capital. The report is based on the data collected by the 56 Capitalise advisers over the last 3 years, with additional statistical data from Citizens Advice and the Legal Services Commission in a unique collaboration.
Some of the key findings from the report include:
1. The people coming to see debt advisers for face-to-face advice have changed – more homeowners struggling, more working people with a low income, more self employed people, higher levels of debt.
2. Capitalise debt advice services are much in demand – people must now wait significantly longer to see a qualified adviser, are more urgent priority debts, and they have more debts needing to be supported with.
3. People seeking debt advice are now even more likely to be financially excluded or at risk of financial exclusion than when Capitalise started in 2006.
4. Creditors are becoming more aggressive and difficult to negotiate with as they refer more cases to debt collection agencies and are more likely to call in the bailiffs to repossess people’s assets.
5. The geographic profile of people seeking free face-to-face debt advice shows significant difference between Inner London and Outer London. Inner London has clients on lower incomes with a greater risk of financial exclusion, while people in Outer London have considerably higher levels of debt.
