Cost of living: Milton Keynes charity says demand is increasing

MK Money Lifeline offers free financial advice, including help with budgeting and signposting to other organisations

A cost of living crisis has been declared in Milton Keynes where the city council says one in five adults cannot pay their household bills. A charity that offers free financial advice says demand for its services is on the up and it expects to see a "tsunami" of people. Who does the charity help and how?

'I've been given my life back'

Thomas encourages other people to speak out and get help if they are struggling

Thomas says his bills got "out of control" and he got into debt during the pandemic - and then came the price rises.

He says going to the charity MK Money Lifeline has given him his "life back".

Thomas, who has a son, says he was struggling with his rent and bills but the charity "helped me every step of the way".

"It's not like I mismanage my bills, it wasn't that; it's just that it was too much for me to handle," he says.

"It's no secret; there was a time I was deep into debt and I was afraid to go to the mailbox because the letters would give me more stress - how am I going to pay the bills and at the same time manage the cost of living?

"Had it not been for MK Money Lifeline, I would be in a far worse position, mentally and financially."

He says he has made changes to his expenditure and has cut down on the amount he was spending on food, clothing and anything else that was not necessary.

Thomas encourages others to speak out and ask for help.

'The bills seem never ending'

Jack says he cannot sleep at night because he is worried about his financial situation

Jack uses MK Money Lifeline because is "constantly worried" about the increasing cost of living.

"I've paid my gas and electric, paid my rent and have got some outstanding bills that I have to pay as well, but the money that I'm getting isn't enough to cover the bills and the outstanding debt," he says.

"I'm in a position where I'm not sleeping at night; I'm constantly worried how long I'm going to have left in my property due to the finances.

"You look at one bill then you pick up another; it seems to be never ending."

Jack, who rents a flat, says he will not put the heating on for a hot bath and has cancelled his wi-fi because he cannot afford it.

He says he is in a "Catch 22" situation.

"I don't know whether to pay all of my rent off, my gas and electric, my council tax, because I know I'm going to be paying one off to put myself in debt with another one," he adds.

'Debt is almost taboo'

The charity says it is already seeing an increase in the number of people walking through its doors.

Senior debt adviser Sally Anderson is expecting a "tsunami" of people coming to them this winter.

"I don't think it's hit massively yet - we're going to see that in the next few months - but some of the clients we're already seeing are struggling to pay their repayments because they are having to pay out more for their gas and electric," she says.

She says although there is government help which is coming through, people who are on prepayment energy meters are struggling.

"Those people who have a debt with [a] company are not seeing any benefit at all because the money is being paid direct to the company and is coming off the debt and therefore it's not releasing any money for heating in their homes," she says.

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She says they are also seeing more of people who are in work but "just can't manage - people who have mortgages and are struggling to pay because their energy bills have gone up, their food bills have gone up and it's all becoming too much".

"Debt is almost taboo and they don't like to think about going into debt or admitting they're in debt so when they come to us - that's a really big thing," she says.

"There is always a way forward; there is always hope."

She says even though their resources are limited, they can help people budget, ensure they are getting the right benefits and are on the right energy tariffs and help them make some changes to cut costs.

"We can't give money but we can offer signposting to other areas and be here as a support for people," she adds.

Government support

The Department for Levelling Up, Housing and Communities says the government knows the "pressures people are facing with rising costs" and it is phasing in £37bn worth of support, as well as its Energy Price Guarantee and Energy Bill Relief scheme.

"This year, we have also made available an additional £3.7bn to councils to ensure they have the resources they need to maintain and improve their services," says a spokesperson.

"This includes an additional £18m for Milton Keynes City Council."