‘£680 well spent’ as charity gives life changing moment to client

‘£680 well spent’ as charity gives life changing moment to client

A charity says they were able to change the life of a London man who had built up an almost unimaginable level of debt.

Simon* owed nearly £40,000 to various bodies and was living in fear, anxiously trying to work out how he was going to pay them back.

He turned to London-based charity Money A+E for help – an organisation that provides money advice to disadvantaged groups, diverse ethnic communities and young people across the capital.

They’re funded, in part, by British Gas Energy Trust, as they seek to support people in fuel poverty.

The Money A+E team were able to support Simon to clear the debt and give him the chance to rebuild his life.

Paul Raine, Advice Team Supervisor at Money A+E, said: “He had around £35,000-40,000 worth of debt. Some of it was rent arrears to a private landlord, he had multiple parking tickets, he also owed council tax and had arrears to the DWP. These creditors are not going to go away.

“He was living on the basic standard allowance of Universal Credit which is about £400 a month. He was insolvent and unable to pay this money back. His best solution was to file for bankruptcy and that’s what we did.

“It was life-changing for him. He no longer has the fear, the stress and the anxiety of having all this debt and creditors harassing him at every turn. That’s £680 well spent on a bankruptcy fee.”

Simon is one of around a thousand people Money A+E supports each year. So far this year, they’ve helped clients to gain a collective £1.3m in maximised income – a 17% increase on 2024.

Paul says as well as supporting people who are well-versed in the benefits system, the charity is also helping many who are needing assistance for the first time.

He added: “I think it’s common across most organisations – a lot of people who are struggling with their energy bills are on low incomes. But that’s not just people who are on benefits, it’s people who are in work as well.

“It makes it worse that many people aren’t claiming all the benefits they may qualify for. There are many people clued up on what they’re entitled to. But some are not and for whatever reason, they just aren’t aware that there was a benefit out there to support them. Often, it’s because they’ve been working and haven’t been involved in the benefit system before. People may have been in work for 10-20 years and then suddenly they are out of work and many of them miss out.”

The Money A+E team take the time to understand their clients’ finances and help them claim all the financial aid they’re entitled to – as well as provide handy tips and practical items to support with household energy issues.

Items that have been particularly well received recently include energy-efficient electric fan heaters, heated throws, reflective radiator foils and draught excluders.

*name changed to protect identity

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