Offering a Helping Hand to People Trapped in the Maze of Debt

HUNDREDS of people in the North West have begun to benefit from a new charitable trust which started reviewing applications for grants this week to help British Gas customers who are facing household debt issues.

The British Gas Energy Trust, funded by donations from British Gas, of £10million over 3 years, will provide financial assistance to domestic customers of British Gas to help them clear energy arrears so that they can concentrate on their ongoing bills. Some help is also available for people who need support with other essential household items. The Trust will operate entirely independently of British Gas, and will be governed by an independent Board of voluntary trustees.

Mike Lake, Director General of Help the Aged and Chairman of the Trust, said:- "This is an exciting, important and extremely valuable initiative established with the generous support of British Gas. It will enable us to help households throughout England, Scotland and Wales struggling to pay their energy bills at a time when they might be facing hardship or difficult family circumstances. Financial support offered by the Trust will give people a new start and allow them to manage their finances more effectively."

The Trustees, keen to make a difference to people's lives, are delighted with the response to the Trust so far from people requesting application forms with over 15,000 having already been distributed.

Although a great deal has already been done to help, latest estimates reveal that some two and a quarter million UK households are facing fuel poverty1 - in other words, they are unable to afford to cover the cost of household fuel bills adequately, with 15% of those owing more than £3002. According to the Household Survey (2002) 7% of households were in arrears on payments of household bills. The Citizens Advice Bureau has seen a 44% increase in the number of people seeking help for debt problems over the past six years.

Many people will have fallen into a spiral of debt as a result of unemployment, illness, or relationship breakdown, but a grant from the Trust will help them to get back on their feet. Grants may also be available to cover other household bills.

For more information, visit the Trust's web site at:-www.britishgasenergytrust.org.uk.

Liverpool to adopt tsunami town

LIVERPOOL is reaching 9,000 miles across the sea to help rebuild a town destroyed by the Asian tsunami. 

A new charity, 'Hands Across The Sea', was launched last week. City council executive member, Councillor Flo Clucas and Councillor Linda-Jane Buckle have developed the project. They are liaising with the High Commissioners of the affected countries to identify a stricken town to establish twinning links with. 

A range of firms and organisations throughout the city have already committed their support to the city-wide project, including the Primary Care Trusts, the Mersey Docks and Harbour Company, the Chamber of Commerce, LIPA and the Empire Theatre.

ACCA research shows National Minimum Wage is impacting on small businesses

IT has been revealed that the National Minimum Wage (NMW) is having an increasing impact on small businesses, which are having to change the way they operate, research conducted by ACCA (the Association of Chartered Certified Accountants) has found.

ACCA surveyed practising firms across the UK, who have around 12,000 small business clients. It is now clear that those businesses have increasingly stronger views on the effect of NMW. Whereas in 2000 and 1999 the majority of ACCA firms believed their clients to be 'indifferent' towards the NMW, in the new survey they are perceived to be significantly more 'divided' on the issue.

For the first time, less than half (43%) said they had been unaffected by having to accommodate the NMW. This contrasts with 71% in 1999 and 62% in 2000. The NMW was increased this year to £4.85 per hour for adults.

Of the main changes that businesses have made to their working practices, 23% said they have frozen staff recruitment, 18% have reduced overtime and 17% have cut working hours. 

The proportion of members who believe that the NMW has had a negative effect on their clients' profitability has also substantially increased, 45% in 2004 compared with 22% in 2000. On average, 35% of members thought that the NMW has had an effect on their clients' pay differentials and pay structures. This has increased significantly from 17% in 1999 and 13% in 2000.

But it was considered by the majority of members (67%) that the new minimum level of £3.00 per hour for 16 to 17 year olds will have no effect on their clients' business recruitment policies, alleviating some initial fears as to the 'knock-on' effect that this new rate might have on small businesses.

Professor Robin Jarvis, Head of Small Business, ACCA says:- "In principle, ACCA supports the NMW. Since it was introduced the NMW has brought benefits to many low paid workers without having the large negative impact on employment and the economy that was widely predicted. It is important that workers are paid a fair wage and that employees, particularly younger individuals, are not exploited. Regular 'uprates' are important to maintain the real value of a minimum wage."

But he added:- "Our latest research indicates that whilst the majority of businesses appear to have absorbed the costs of previous rises, the increases are having more impact on businesses profitability and work practices and this is a growing concern. The Government should consider the regional and sectoral impacts of the NMW when considering the size of future increases and must be careful to ensure that the NMW only rises to levels that do not have a negative effect on employment and work practices." 

ACCA members believe the Government should do more to ensure that businesses are aware of the new fair piece rate system for output workers, which have replaced the previous fair estimate agreements. 61% either disagree or strongly disagree that the Government has provided adequate information on the new system.