Women more likely than men to be in poverty due to public debt, research finds

New research showing that women in Scotland are more likely than men to be at risk of being driven into poverty by public debt collection must be a “wake-up call for decision-makers”, a charity has said.

A report published on Tuesday by Glasgow University and commissioned by Aberlour Children’s Charity, One Parent Families Scotland, and Trussell, reveals women are more likely to face financial hardship because of how national agencies and local authorities recoup arrears.

Detailed analysis of the anonymised records of 71,000 people seeking debt advice in Scotland revealed 57% were women.

The report, titled The Gendered Impact Of Public Debt, also shows women owe the most in public debt, like council tax and rent.

The research suggests caring responsibilities can often mean reduced income, less financial resilience and greater risk of poverty, while deductions from benefits to pay arrears often makes difficult household budgets impossible.

Justina Murray, Aberlour chief executive, said public authorities should treat arrears as an “emergency flare”.

She said: “We have known for some time how the pursuit and collection of public debt inflicts further financial harm on some of our poorest families.

“This important research confirms that impact is felt most often by women and most often by those caring for children or other family members.

“It is clearly embedded in the lives of low-income women, deepening the inequalities they already face.

“Our public authorities should treat arrears as an emergency flare, a signal to intervene – not to make things worse.

“There are far better, more humane, and less destructive ways to collect, or cancel, this kind of debt.”

Aberlour said it fears deducting money from benefits to collect arrears is pushing many families into poverty.

The research revealed £221 million is deducted from payments for just one benefit, universal credit, each year in Scotland.

Professor Morag Treanor, of the University of Glasgow, said the work had been possible because of the depth and quality of the records kept by Citizens Advice Scotland and debt charity StepChange.

She said: “Public debt does not come in isolation but most often arrives alongside other hardships and inequalities.

“Our understanding of its impact must become far stronger and shape effective policies to ease those inequalities. Looking at public debt in isolation does not reflect the reality of how its collection impacts lives.

“This research confirms public debt is part of our country’s poverty crisis and can only be addressed as part of that crisis.”

In Scotland, enforced payment of council tax arrears is fast-tracked and debt can be collected for 20 years compared to six in England and Wales.

Food insecurity charity Trussell said “nearly everyone” referred to one of its food banks is dealing with arrears.

Cara Hilton, senior policy manager for Scotland at Trussell, said: “People across Scotland are being pushed deeper into hardship, left exhausted, isolated and without enough money for essentials.

“Nearly everyone who is referred to a Trussell food bank in Scotland faces debt or arrears, with disabled families and single parent families at greatest risk.

“Our new research reveals this burden of debt is falling disproportionately on women, undermining women’s mental health and family wellbeing.

“Our joint research must be a wake-up call for decision-makers at both Scottish and UK level. We must see bold action to end the spiral of public debt that traps so many women and their children in hunger and hardship.”

The Scottish Government has been approached for comment.