Recession drives more relationships onto the rocks

LGA media release - Wednesday 24 December

Mortgage arrears are driving more people's relationships onto the rocks and debt counselling has increased dramatically in recent months, according to a new survey published today by council leaders into the impact of the recession and the credit crunch.

The survey of all councils across England found that several key services provided by councils and local voluntary organisations had seen large jumps in people wanting to use them since the credit crunch and recession started to bite.

Other studies have also found that divorce proceedings in early January can be 50% higher than at any other time of the year, with Christmas stress partly to blame, raising fears that there may be even more divorces this January than previous years.

When asked whether services in their area had experienced increased demand as a result of the economic slowdown:

• 93% of councils said there had been an increase in demand for debt counselling
• 17% of councils said there had been an increase in demand for relationship counselling
• 69% of councils said there had been an increase in demand for housing advice
• Half of councils said there had been an increase in demand for employment advice

The figures demonstrate the continuing impact of the recession and the credit crunch on people as they turn to councils and voluntary organisations for financial and personal help.

The research has also found that one in ten councils have been asked to give emergency grants to charity and voluntary organisations who are in trouble because of the economic slowdown.

Chairman of the Local Government Association, Cllr Margaret Eaton, said:

“These figures demonstrate the effects the credit crunch and the recession are having on families across the country. From fears about debt to cash worries putting strains on relationships, people are feeling the pinch.

“Global problems have tipped the British economy into a recession that is affecting countries around the world. The Government has acted at international and national levels, councils are now taking a lead in the effort to find local solutions to local problems.

“From keeping people in their own homes and offering support to the unemployed, to helping small businesses stay afloat, councils are already acting.  Councils will be pulling out all the stops over the coming months and years to protect local people and businesses from the worst effects of the slump.

“The recession is going to hit different parts of the country in very different ways and even within individual regions there are marked differences as to how local areas could fare. It is clear that a national, one size fits all approach to dealing with the recession simply isn’t going to work. The fastest way to get out of recession is for more decisions about the economy to be taken at a local level, which means councils continuing to work with local people and businesses.

“The economic recession will touch almost everyone in the UK in some shape or form. Councils are at the centre of helping people, businesses and other groups through the tough economic times ahead. When things go wrong, councils step in, both to help kick-start the economy when it hits rock bottom and to provide a safety net for people in need.”

ENDS

Author: LGA Media team
Contact: Nicholas Mann, 0207 664 3333