It will come as no surprise that debt is a common reason for people to become homeless.
Debt can happen to anyone at any time and can quickly spiral out of control; it’s frequently mentioned when people come to Launchpad for help.
Launchpad’s Drop-In team explains:
“Most of the people who come to us with debt issues aren’t here because they’re spending their money on the ‘wrong things’. The most common reason we see people with debt issues is because they’re genuinely confused about their benefits and council tax.
“For example, someone getting Universal Credit must log into their journal online and request that their housing is paid – otherwise, the first time they know that it hasn’t been paid is when they get a letter from their landlord demanding payment. This can come as a huge shock!
“This happens because of a common assumption that Universal Credit automatically covers rent before it is paid to the person receiving benefits. We’ve had so many people get caught out in this way and this can lead to a great deal of stress. When you’re on a very low income paying off a debt can be a huge challenge.
“Another area that can catch people out is paying Council Tax. Some councils will pay it when you are in temporary accommodation, others will not.
“Universal Credit is a complicated system and there isn’t enough information out there – people really need to look at their tenancy agreements and benefits information in detail. This is easier said than done.”
Working with others
We are very pleased to be working alongside Reading Welfare Rights who are now permanently based in Launchpad 135, our work and life skills centre.
They advocate for Reading’s most vulnerable residents, supporting individuals who are entitled to state aid but who, due to the complex nature of the benefits system, cannot access the benefits they are due without intervention. Without their help, many more vulnerable people in Reading would find themselves in debt.
We also host regular workshops at 135 with the Citizens Advice Bureau. Other workshops include giving people tips on how to have an energy efficient home, saving money on utility bills.
Everyone in Launchpad accommodation is helped with managing their money. By talking to everyone about debt, we are helping people take the first step towards regaining control of their financial life.
Our work at Launchpad goes beyond providing a roof over someone’s head. We address issues such as mental health problems, substance misuse, metal wellbeing, socialisation, self-esteem, personal safety, budgeting capabilities and education, employment, and training.