The price of food has increased at its fastest rate in 45 years and is one of the main contributors to the cost of living crisis in Scotland.
The annual inflation rate for this category alone was 19.2%.
Despite this, inflation has actually reduced in the last few months.
As a result, more than over one million adults in Scotland have taken action to reduce their outgoings, admitting to spending less on essentials such as food.
Food Poverty
Food poverty refers to not having access to sufficient food, or food of an adequate quality to meet a person’s basic needs.
The UK’s rate of food poverty is among the worst in Europe.
The Trussell Trust saw record numbers of people seeking help between April 2022 and March 2023, with more than 760,000 people forced to turn to the charity’s food banks for the first time in their lives.
Key workers are far more likely to experience food poverty. Around one in five teachers, and one in four NHS workers are currently experiencing food poverty.
Poverty’s Impact on Health
The cost of living crisis and the rising costs that have accompanied it can have a negative impact on a person’s health, both mentally and physically.
There are several ways in which rising costs can affect health, such as:
– being unable to afford food or have a nutritious diet
– living in a cold or damp home
– an increase in unaffordable debt
– financial worries may lead to a decline in mental health
What can be done to minimise health impact:
– checking eligibility to benefits that may boost income
– debt relief through a variety of debt solutions
– flexible work to reduce childcare or transportation costs
– reduce spending in non-essential areas that are unlikely to impact a person’s mental or physical health
School Meal Debt
A health and wellbeing census published by the Scottish government in March found that nearly 60% of pupils at least sometimes went to bed or school hungry.
For children living in food poverty, a free school meal may be the only guaranteed hot food that they have that day.
A growing and forgotten debt is school meal debt.
This is where parents or guardians have fallen behind with paying for their children’s school meals.
Aberlour, a Scottish children’s charity, has revealed that over one million pounds of school meal debt is owed in Scotland, and one in four children continue to live in poverty.
As a result, Glasgow City Council has decided to scrap school meal debt above a certain amount, with further councils expected to follow.
Their aim is for this to help families who are struggling with the cost of living.
To add to this, school lunches are currently free for children P1-P5, but the Scottish Government are planning to extend this to all primary children.
Scottish Debt Solutions
There are a number of formal Scottish debt solutions designed to lift the burden of debt.
A Trust Deed: A Trust Deed is a voluntary but legally binding agreement between you and your creditors where you agree to pay back an affordable portion of what you owe. After your Trust Deed has ended, which is typically after four years, the remainder of the debt is legally written off.
The Debt Arrangement Scheme (DAS): The DAS is designed to help you pay back your debt at a regular, manageable rate – without the threat of legal action hanging over you. The Debt Arrangement Scheme freezes interest, fees, and charges from the date of approval. As long as you fully complete the plan, then these interest and charges cannot be added back by your creditors.
Sequestration: Sequestration is the Scottish version of bankruptcy. Sequestration is a way for individuals in Scotland to get rid of their debts, however, if you have any assets, they could be sold to raise money for your creditors.
Minimal Asset Process (MAP): Minimal Asset Process (MAP), is a route into Sequestration. The Minimal Asset Process allows you to write off your unsecured debts in a short period of time if you are on a low income with no disposable income left after covering your essential living costs or your income is only from income-dependent benefits.
Statutory Moratorium: Whilst not a long-term ‘solution’ as such this effectively stops creditor action against you for 6 months, offering you valuable time to seek advice and think about your longer-term options. As the Statutory Moratorium is not a debt solution in the sense that it does not write off debt, or stop interest and charges from building up, it does give you time to think and will stop imminent creditor action, such as an earnings arrestment or a bankruptcy petition. Any debt recovery actions already in existence, e.g. an earnings arrestment, will remain in place.
To get in contact for tailored debt advice, follow our Trust Deed Scotland® wizard tool or call us on 0141 221 0999.