Poverty begets poverty

Poorer people in Scotland are paying more than others for essential services, according to research from the Citizens Advice Scotland (CAS). Those on low incomes often paid above average for energy, telecoms and financial services. Bigger bills makes their financial situation worse which further affects health and relationships, CAS said.

Researchers found that lower income Scots were more likely to use expensive pre-payment meters. Less than a quarter of those who used the meters had switched their energy supplier in the last three years. Those living in the most deprived areas of the country were even less likely to switch suppliers, according to the report.

They were also more likely to use mobile phones on pricier pay-as-you-go plans, researchers said. In addition, poorer people in Scotland were less likely to switch phone suppliers and more likely to be without a mobile at all - and so were hardest hit by the rise in landline costs.

CAS said low income consumers would often take out credit or loans without understanding the full costs involved.

The poor had no home contents insurance because they found it unaffordable.

CAS spokesman Patrick Hogan said: "Our new research today shows that many individuals' financial situations are made even worse because poverty levels limit their choices when it comes to accessing consumer services. So, if you are poor in Scotland today you pay more for basic services, and so become even poorer.” Mr Hogan added: " Poverty should not breed even more poverty."