Over-60s in region ‘squeezed 
by high prices and debt levels’

StepChange says a growing number of older people are being trapped in a debt crisis, having seen a dramatic rise in people aged 60 and over throughout the country seeking the charity’s help as they struggle to cope with reduced spending power and rising bills.

Last year, 13,148 people aged 60 and over contacted StepChange for help, a 36 per cent increase since 2009 when 9,628 people in that age group sought advice.

The amount of problem debt reported to the charity last year throughout the country by those in this age group totalled more than a quarter of a billion pounds.

Latest figures for the first quarter of this year also show the extent of the problem in Yorkshire – with the average over-60 in contact with the charity owing £16,177 on credit cards, loans and other unsecured debts.

Closer analysis of the figures for the first three months of this year also reveals those living in more affluent parts of the county are struggling just as much as those living in less affluent areas.

In one postcode area of York, which includes the Huntington area, the average unsecured debt held by the over-60s seeking help is £79,561, while in the Knaresborough area the average debt is £25,105 and in one of the postcode areas of Halifax, which includes Wainstalls, the charity reported average unsecured debts of £42,279 in the first quarter of this year.

In the Chesterfield area average debts of £22,862 were reported over the same period and in the York postcode district which includes the Elvington area average unsecured debts of £31,987 were reported.

Experts say those in this age group are particularly vulnerable to the high price of food, fuel and energy prices at a time when returns from their savings and pensions are being hit by low interest rates. They are also helping younger family members when their own incomes are being squeezed.

Delroy Corinaldi, external affairs director at StepChange, said: “The rise in the number of older people seeking help from the charity along with their higher than average debt levels is very worrying.

“Whatever someone’s income level during their working years, most would expect to be in a stable, if not comfortable, financial situation when they are older. Unfortunately those in this age group who are struggling with debt are particularly vulnerable as their earning potential has diminished.”

StepChange says the higher debt levels of the over-60s across the UK is driven mainly by credit card debt, which is an average of £15,152 compared with £10,006 for all age groups. The over-60s, however, owe less than the average on personal loans and payday loans – but it said its figures showed the amounts owed on payday loan debts for this age group is rising.

Age UK, believes around a third of older people are currently struggling financially.

It says everyday living costs are causing considerable hardship for pensioners, according to its new survey.

It found 56 per cent of those surveyed were worried about even the most basic living costs such as buying food and keeping warm, with around a third of older people feeling financially worse off than this time last year,
with nearly a quarter of those surveyed admitting they have cut back on luxuries and a fifth saying they have bought cheaper or less food.

Worryingly, one in five said they had cut back on heating their home this winter to save cash.