Aberlour, One Parent Families Scotland and Trussell commissioned the research as they campaign for reform of how debt is pursued
More women than men are at risk of being driven into poverty by government debt collection, according to research.
A landmark report reveals women in Scotland are more likely to face financial hardship because of how national agencies and local authorities recoup arrears.
Detailed analysis of the anonymised records of 71,000 people seeking debt advice in Scotland reveals 57% were women and they owed most in public debt, like council tax and rent.
Single mothers and those living in households where a child or adult is disabled were particularly at risk with the psychological toll of debt often damaging their physical and mental health, propelling them deeper into financial hardship.
The research suggests caring responsibilities can often mean reduced income, less financial resilience and greater risk of poverty while deductions from benefits to pay arrears often makes difficult household budgets impossible.
Aberlour Children’s Charity, One Parent Families Scotland and Trussell commissioned the research as they campaign for wide-ranging reform of how public debt is pursued.
Justina Murray, Aberlour chief executive, called for far greater awareness of the potential damage inflicted by public debt alongside far-sighted reform to ensure its collection does not deepen family poverty and gender inequality.
She said: “We have known for some time how the pursuit and collection of public debt inflicts further financial harm on some of our poorest families.
“This important research confirms that impact is felt most often by women and most often by those caring for children or other family members.
“It is clearly embedded in the lives of low-income women deepening the inequalities they already face.
“Our public authorities should treat arrears as an emergency flare, a signal to intervene not to make things worse.
“There are far better, more humane, and less destructive ways to collect, or cancel, this kind of debt.”
Aberlour, delivering frontline support to disadvantaged children, fears deducting money from benefits to collect arrears is pushing many families into poverty with the research revealing £221 million is deducted from payments for just one benefit, Universal Credit, each year in Scotland.
Professor Morag Treanor, of University of Glasgow, who carried out the research, said the work had only been possible because of the depth and quality of the records kept by Citizens’ Advice Scotland and debt charity StepChange.
She urged other organisations to gather far better data to allow more expert insight into how public debt and its collection can drive families to the brink of financial crisis.
She said: “Public debt does not come in isolation but most often arrives alongside other hardships and inequalities.
“Our understanding of its impact must become far stronger and shape effective policies to ease those inequalities. Looking at public debt in isolation does not reflect the reality of how its collection impacts lives.
“This research confirms public debt is part of our country’s poverty crisis and can only be addressed as part of that crisis.”
The charities funding the report, The Gendered Impact of Public Debt, said it makes a compelling case for urgent changes to legislation, policy and practice at all levels of government on both sides of the border.
Campaigners highlight how collection of public debt can be harsher and more punitive than in the private sector. In Scotland, enforced payment of council tax arrears is fast-tracked, for example, and arrears can be collected for 20 years compared to six in England and Wales.
Satwat Rehmen, chief executive of One Parent Families, said: "This report shows us that economic abuse can have a significant and lasting impact on single parents' finances long after a relationship ends and that, with 92% of single parents in Scotland being women, this is a highly gendered issue.
“We know that women's poverty and child poverty are inextricably linked and therefore, by addressing public debt systems that aggravate economic abuse and tighten household budgets, we can ultimately provide brighter futures for families post-separation."
Cara Hilton, senior policy manager for Scotland at Trussell, said: “People across Scotland are being pushed deeper into hardship, left exhausted, isolated and without enough money for essentials.
“Nearly everyone, 92%, who is referred to a Trussell food bank in Scotland faces debt or arrears, with disabled families and single parent families at greatest risk.
“Our new research reveals this burden of debt is falling disproportionately on women, undermining women’s mental health and family wellbeing.”
“Our joint research must be a wake up call for decision makers at both Scottish and UK level. We must see bold action to end the spiral of public debt that traps so many women and their children in hunger and hardship.”
