Service providing financial advice for residents in South Tyneside has seen a near 400% increase in clients

A service providing financial advice for residents in South Tyneside has seen a near 400% increase in clients amid the cost of living crisis.

South Tyneside Poverty Group, which includes representatives from the local authority and other partner organisations, has been working to help support residents amid the challenges caused by the recent financial crisis.

Key aims include ensuring collaboration between council teams and key groups in the area and acting on findings from evidence, intelligence and engagement with partners.

A report to South Tyneside’s health and wellbeing board outlined how the financial picture for residents has been “significantly exacerbated by the unprecedented levels of inflation” over the past year, particularly on energy and food costs.

This has led to food bank usage tripling since last year and rough sleeping up 25%, while requests for financial assistance from the council’s welfare support team have reached their “highest ever point”.

Meanwhile Citizens Advice reported a 378% increase in clients seeking advice due to the financial crisis in 2022-23 compared to 2020-21.

Speaking at a meeting, Cllr Ruth Berkley, lead member for adults, health and independence, praised the support mechanisms in place and the work being carried out to aid residents.

This included the benefits of designated community sites known as ‘Warm Spaces’ which have been in place, with more than 60 venues continuing to keep their doors open under the new name of ‘Welcoming Places’.

Cllr Berkley said: “One of the things that came across very strongly was that people were going more really about isolation.

“It really has highlighted the level of isolation that there is and it is a factor for us to look at how we respond to that need across the borough.

“The other key aspect for me was we were very committed to going into those areas that we perceive being most at need and being directly there so there was an opportunity to not have to travel far to be in and get into a warm place.”

She added the venues also acted as an opportunity for welfare services to get into communities and speak to residents, and she praised the partnership work involved.