People suffering from ill health are on a ‘cliff edge’ as a debt crisis surges during pandemic

People suffering from ill health are on a ‘cliff edge’ as a debt crisis surges during the Covid-19 pandemic.

A new ‘Financial Shield’ pilot scheme to improve support for people with health and financial problems is being trialled in Lambeth and Southwark.

The scheme, that launched last week, will be tested using 2,000 people in both boroughs until September 2022 with the hope that, if successful, it will be rolled out nationally.

This follows a warning from Citizens Advice that issues with debt may be about to get a lot worse with the number of people on Universal Credit doubling as Government support is being withdrawn.

Kieron Boyle, Chief Executive of Impact on Urban Health said: “People’s finances and health are connected – debt, money worries and financial insecurity can have a profound effect on our physical and mental health.

“This is especially the case in ‘cliff edge’ moments such as unexpected bills or delays in income.”

A report published last week by the Impact on Urban Health concluded that many residents’ health issues and problems with money exacerbate each other.

The report also found that the coronavirus pandemic has widened the health gap between those living in the most deprived and the more affluent communities.

Lower income households living in rented accommodation, families with children – especially single parents – people from minority ethnic backgrounds, and those suffering from health problems were all found to be disproportionately affected.

Dellasie Avorkliyah, a mum-of-one from Croydon, was diagnosed with breast cancer in 2019.

She said: “When I was diagnosed with cancer, my finances were one of my main concerns.

“As a single mum, who’s the sole income earner, there’s a lot of pressure anyway. But when my cancer treatment made it impossible to continue working, that pressure only became more intense.

“The financial impact of a cancer diagnosis was a big shock to me. No one can prepare you for that shock; it literally feels like someone is pulling the rug from underneath you.”

It was only once she was offered a hardship grant from Macmillan Cancer Support that she was able to cope.

“That money helped keep me and my son going. It alleviated some of the worries about life’s necessities – the food on the table, bills, not getting into debt,” She added.

“It also meant he could continue to attend nursery while I was going through chemotherapy and radiotherapy, which was absolutely crucial as a single mum.”

Macmillan has identified that the pandemic has worsened the already devastating financial impact of a cancer diagnosis for many Londoner’s quality of life and mental wellbeing.

Figures from the charity show that more than 16,000 people with cancer (8 per cent) are struggling to pay for basic essentials such as food, bills, rent or their mortgage as a result of Covid-19.

Rodrigo Fenick Figueroa, Macmillan Benefits Case Worker at Citizens Advice Wandsworth said: “Many people need to access benefits for the first time in their lives following a cancer diagnosis, but don’t know where to turn for help.

“It’s a complicated system to understand, particularly at a time when they should be focussed on their health, rather than their finances.

“Cancer patients are entitled to this welfare support, but they often tell us that the application process can feel like having to jump one hurdle after another.

“That it’s as if they’re fighting a losing battle, which can cause a good deal of unnecessary additional stress.

“Cancer doesn’t stop for Covid and nor do the money worries.”

The Financial Shield scheme will test three pathways to improve health outcomes proactively, including:

• A healthcare pathway, working with GPs and health professionals to offer patients in postcodes with the largest arrears in Council tax and rent a 60 day debt holiday with a repayment plan to get  ‘back on track’;
• A community-based pathway, working with local support groups and connectors to access vulnerable individuals
• A creditor-led pathway, to offer support to people with large arrears and debts via Housing Associations and other creditors.

Bell Ribeiro-Addy, Labour MP for Streatham, said: “It’s great to see an innovative new approach to tackling debt and health issues simultaneously being tested in my local constituency and the surrounding area.

“We have long known that the stress of debt can be the cause of health problems, potentially transforming into a vicious cycle which is near impossible to break.

“By working with local GPs and Primary Care Networks to socially prescribe support for debt management, people suffering from these issues may be given the chance to get back on track. I look forward to seeing the results of this pilot.”