FUNDING SUPPORT FOR FAMILIES WITH MILLIONS OF POUNDS OF DEBT IN COALFIELD COMMUNITIES

 

Residents of England’s coalfield communities who are struggling to make ends meet during the recession will benefit from extended free debt advice services, thanks to £1 million of grants to be announced this week by The Coalfields Regeneration Trust (CRT).

 

The fragile recovery of England’s former mining towns has suffered a setback as local economies struggle to cope with the effects of the recession. In response to the serious financial problems experienced by many households, the CRT has allocated £250,000 from its existing fund to target organisations serving coalfield communities in Yorkshire, the North East, the North West and the Midlands.

 

In addition to the CRT’s funding, the Department for Communities and Local Government has committed £750,000 to further enhance services in areas that need support the most.

Grants will be available to organisations including CABs, credit unions, law centres and unemployed workers centres working in eligible coalfield areas.

 

Chair of the CRT Peter McNestry said:

“The recession is having a devastating impact on households in coalfield areas, where finances are often already desperate. Our new funding programme is aimed at helping residents of all ages and we welcome the contribution from the Government, which provides a substantial £1m programme to address the growing demand for free advice on everything from avoiding repossession to getting back to work.

“Early action to address the impact of the recession is key to preventing economic issues becoming deep-rooted social problems; an important lesson learned from the history of coalfields regeneration. We must not be distracted from our task of raising skill levels and aspirations, and supporting people into work, but the impact of the recession cannot be ignored. The additional funding from the Government helps us to allocate our funds so they continue to be effective and make a difference to residents facing many different challenges.”

 Local Government Minister John Healey said:

“Twenty five years ago entire communities were devastated by the collapse of the coal industry and the miners’ strike - today these same communities are again being hit hard by the current global economic slump.

"Through the Government's coalfield support, we have invested £1/2 billion over the last decade to make significant progress in helping people retrain and get into work.  But once again these communities are facing new challenges, and I am determined that they continue to get the support they need.

“That’s why I am announcing a cash injection to provide much-needed help for people in coalfield communities to find new jobs, stay in their homes and manage their way through these difficult times.”

The Citizen’s Advice Bureau (NACAB) reports that approximately 40 per cent of its client contacts deal with debt issues. Its A Life in Debt Report 2008 states that on average CAB clients owe £16,971. This is a two thirds increase on debt levels in 2001 and equivalent to almost 18 times their monthly household income.

 

Many debt advice services are reporting an increase in the number of enquiries they are receiving, specifically on debt problems, mortgage repayments, benefits and money advice. The CRT programme delivered in each of the regions will support a package of free-to-client services, tailored to requirements, including debt advice, income maximisation, financial capability training, money management advice, financial back to work plans, court desk service on repossession cases, and employment advice.

 

It is estimated that up to 8,000 people from coalfield communities will get extra help as a direct result of the £1m programme.

 

The CRT is working closely with organisations in five areas: Amber Valley, Mansfield, Ashfield, Nottingham (Bullwell and Bestwood), Chesterfield and Erewash in the East Midlands; Stoke-on-Trent, Cannock Chase, North Warwickshire, Nuneaton and Bedworth, Tamworth, Staffordshire Moorlands and Newcastle-under-Lyme in the West Midlands; Wigan, St Helens, Allerdale and Cumbria in the North West; Blyth Valley, Derwentside, South Tyneside, Wansbeck, Easington and Sunderland in the North East; and Barnsley, Doncaster, Rotherham and Wakefield in Yorkshire. A full list of the eligible wards is available from the CRT on 01709 760272 or www.coalfields-regen.org.uk.

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Email :   info@coalfields-regen.org.uk  
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