Rising cost of living leading to mental health crisis, warns charity

A charity has warned that Scotland is “hurtling towards a mental health crisis” due to the increasing cost of living.

Citizens Advice Scotland (CAS) is calling for a change in support offered to people who are in debt and struggling with their mental health as the cost-of-living crisis continues.

Mental health charity See Me found that 59% of people in Scotland said the cost-of-living crisis is impacting their mental health.

On Monday, the charity published a good practice guide for creditors on how to help people manage their finances as well as their mental wellbeing.

Sarah-Jayne Dunn, CAS spokesperson said: “Even as Scotland continues to make (its) way through the cost-of-living crisis, we are hurtling towards a mental health crisis as well, with the links between debt and poor mental health increasingly clear.

“People who are struggling with their health are less likely to be able to re-pay their arrears, so it makes sense all round for creditors to adopt a constructive approach to help consumers manage both their financial and their health situation.

“This guidance is all about helping them do that.

“Our guidance recognises that no two people with the same diagnosis of a mental health condition will have the same experience with their mental health.

“Multiple factors will interplay and interact, including medication, available support networks and treatment.

“Therefore, treating customers as the experts on their own lives and being trusted as the best person to explain how their mental health condition impacts on them, is a fundamental component to providing better support.

“By adopting our guidance, creditors can break this vicious cycle and care for their customers at a time when support for people’s mental health and money is needed now more than ever.”

The new CAS guidance sets out 10 key principles and asks creditors to consider what they are currently doing and what they could do to improve in each area.

The guidance is being made available to lenders across the public and private sectors in Scotland.

The Scottish Government has said that they will continue to take action to “tackle the cost-of-living crisis”.

A spokesperson said: “Many of the levers to tackle poverty remain in the hands of the UK Government, and we continue to urge them to use all the powers at their disposal, including access to borrowing, providing benefits and support to households, VAT on fuel, taxation of windfall profits and regulation of the energy market.”

“We will continue to take action to tackle the cost-of-living crisis within our powers and fixed budget.

“This includes providing free childcare and transport, as well as the game-changing Scottish Child Payment and the Carers Allowance Supplement – two of seven Scottish Government benefits only available in Scotland.

“In addition, our new Winter Heating Payment was automatically paid to 400,000 people this year to help with the cost of winter energy bills.

“Direct investment in mental health has more than doubled since 2020-21, with the published budget for mental health services increasing 139% over this parliament, and we continue to invest in growing the workforce and seek further improvements.

“The mental health workforce has expanded significantly, with a record number of staff providing more varied support to a larger number of people than ever before. The psychology and CAMHS staffing has more than doubled since 2007.”