Charity warns many Scots ‘living in misery’ due to low income and rising debt

Many Scots are “living in misery” because of a lack of income and rising debt, a charity has warned.

Data published by Citizens Advice Scotland (CAS) shows that last year, almost half (47%) of people who visited their local Citizens Advice Bureau with more than one debt were living with no disposable income whatsoever.

Of those who did have disposable income, more than a third (38%) were living with less than £100 per month and just over half (55%) were living with less than £200.

One person had only 10p per month, which the charity pointed out was not enough for a pint of milk.

How can people be expected to live a dignified life if they don’t have enough money for a pint of milk?

The data also shows 71% of those with no disposable income had a “negative budget” of more than £100, while for a fifth (21%) the figure was more than £500.

CAS senior policy officer for financial health Jemiel Benison said: “So many people across Scotland are living in misery because of a lack of income and rising debt.

“One person who sought help from his CAB had just 10p disposable income to last a month.

“How can people be expected to live a dignified life if they don’t have enough money for a pint of milk?

“Another man, Kevin, approached his local CAB for help with a modest sum of debts caused by a relationship breakdown.

“After an assessment of his financial position, it was found that he had a devastating negative budget of more than £400 per month.”

Mr Benison said every day CAS is seeing people facing debts which cause “a severe impact on their physical and mental health”.

He went on: “They have a constant knot of worry and anxiety in their stomach, every second of every minute of every hour of every day.”

CAS has called for “urgent action” to help people out of debt, and prevent more from falling into debt as essential costs rise.

The charity is calling for a minimum income guarantee to ensure an acceptable standard of living for everyone in Scotland, and an end to the five-week wait for universal credit.

It is also calling for the introduction of social tariffs for energy and insurance for those struggling with the cost of living, and for public sector debt to be reformed.

Mr Benison added: “Our advisers do everything they can to help people in this situation through debt advice and income maximisation, but what is really needed is structural reform.

“We know people are spending nights awake, worried about paying for bills, or feeding their children. Urgent action is needed if we’re to help people out of debt and to stay out.”

Housing minister Paul McLennan said: “We recognise the pressure on household budgets which is why in 2025-26 we are continuing to allocate over £3 billion a year to policies which tackle poverty and the cost of living.

“Additionally we will allocate at least £13.6m to support advice services such as Citizens’ Advice Scotland which are key to providing vital support to those with money worries and debt.

“The draft Scottish Budget for 2025-26 prioritises action to eradicate child poverty, including through investment in breakfast clubs, employability services and committing £3 million to develop the systems to deliver mitigation of the two-child cap – with estimates that scrapping the cap could lift around 15,000 children out of poverty.

“The Scottish Government has established an independent expert group to consider how a Minimum Income Guarantee – an income level under which people could not fall – could be delivered in Scotland. We will consider its recommendations in the coming months.”

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