Poverty & Inequalities Profile - Falkirk 2010 - Falkirk Council

Poverty & Inequalities Profile
Falkirk 2009
Financial Security
The Scottish Household Survey is carried out by the Scottish Government biannually for local authorities. There are 3
questions that ask respondents about financial situation such as bank and building society accounts, how they are
coping and savings. People in poverty are less likely to have bank accounts for various reasons. The Banking Code
2005 states that if a bank has a basic bank account option, they should be opened to those who require one or
specifically ask. However, not all banks have this option and they are not usually advertised.
Opening a bank account can be difficult for a number of reasons, for example, due to a previous bank account being
frozen, overdrawn or if the individual is bankrupt, bad credit history or even a lack of credit history. There are also
problems in terms of providing the normal acceptable forms of identification such as a passport or a driving licence
and issues around proof of address and differences in surnames amongst family members.
Table 6:% of households where respondent has a Table 7:% of households describing themselves as
bank, building society or credit union account coping well or very well financially
2003-2004 2005-2006 2007-2008
99-00 01-02 03-04 05-06 07-08
Falkirk 92.9 91.5 90.9 Falkirk 41.6 50.1 55.3 40.9 53.6
Scotland 89.6 91.3 91.0 Scotland 40.3 46.8 46.8 47.2 51.4
Source: Scottish Household Survey Source: Scottish Household Survey
In Falkirk, the number of people without a bank or building society account in 2007/08 was 90.9%; this is slightly lower
than previous years. This shows that people may be experiencing financial difficulties. This is slightly lower than the
Scottish figure, however, where the number of people in Falkirk with bank or building society accounts has decreased;
the Scottish figures have increased from 2003/04 to 2007/08.
Table 7 shows that in 2007/08 53.6% of Falkirk stated that they were coping well or very well financially. This is
higher than the Scottish rate of 51.4%. While Scotland’s rates have increased over the years, Falkirk has fluctuated.
This may reflect the economy, but could also be due to the survey sample of the Scottish Household Survey. It is
important to note that this is before the economic recession and that this figure may have changed considerably.
Table 8: % of households that have some savings
1999-2000 2001-2002 2003-2004 2005-2006 2007-2008
Falkirk 55.7 58.1 59.2 46.1 50.9
Scotland 53.3 53.4 53.3 50.8 49.5
Source: Scottish Household Survey
Being able to save increases an individual’s resilience to debt and poverty. Savings can help in times of being made
unemployed, illness and also for emergencies. However, there are many low income individuals and families that are
unable to save, and this leaves them vulnerable to debt and stress and can also lead to loans from doorstep lenders.
It also affects the ability to plan ahead. The table above shows that Falkirk had a higher level of savers than Scotland
in 2007/08, with 50.9% saving. However, with the economic recession, this may have changed significantly while
more people fall into debt.
Fuel Poverty
Fuel Poverty is the inability to afford adequate warmth in the home. It is defined as having to spend 10% or more of
income to meet recognized heating standards. Extreme poverty is defined as having to spend 20% or more of annual
income on fuel. An adequate temperature is taken to be the World Health Organisation standard of 21°C in living
rooms and 18°C in other rooms.
Figure 3: Fuel Poverty in Falkirk
% of households
30
25
20
15
10
5
0
Fuel Poverty in Falkirk
Fuel Poverty Extreme Fuel Poverty
Falkirk
Scotland
For those living in fuel poverty the consequences are
misery, discomfort, ill health and debt. The Scottish
House Condition Survey for 2003-2006 estimates
that 14% of those who were surveyed in this period
were fuel poor in the Falkirk Council area. This is
lower than the Scottish average of 19%.
Falkirk Council’s All Tenure House Condition Survey
2009 estimates that 28.2% of households in Falkirk
are in fuel poverty, whilst 5.1% are considered to be
in extreme fuel poverty, spending in excess of 20% of
annual income on fuel.