Debt pressure is mounting on more local residents, says report

Citizens Advice Powys helped Newtown residents secure more than £155,000 in disability related benefits over the past year, while also supporting people facing more than half a million pounds of debt, according to a report due to be presented to Newtown Town Council next week.

The Newtown Advice Project report, covering April 2025 to March 2026, shows that 83 residents from the town’s five wards received support through the dedicated service, which is funded to provide urgent advice appointments for local people.

The report reveals that advisers helped residents gain £155,255 in welfare benefits during the year, all linked to disability benefits such as Personal Independence Payment (PIP), Disability Living Allowance and Limited Capability for Work Related Activities payments.

During the final quarter alone, five clients secured £27,524 in annual welfare benefits through the service.

Benefits related issues accounted for 92 per cent of all cases handled through the project, with PIP claims making up 40 per cent of the workload. The report says many people seek help when benefit deadlines have already passed or are close to expiring, putting vital income at risk.

The findings also provide an insight into the challenges faced by many of those seeking help. Four in five clients supported through the project had a long term health condition or disability, while nearly half were unable to work because of their health. Two thirds were social housing tenants.

Beyond the Newtown Advice Project, Citizens Advice Powys reported dealing with 268 energy-related issues for Newtown residents over the year and helping people manage £72,000 of utility debt. The most common concerns included struggling to pay bills, accessing emergency support and understanding energy charges.

The charity’s specialist debt team also dealt with 728 debt advice issues involving Newtown residents and managed debts totalling £547,196.

Credit card debt was the largest single category at £131,201, followed by utility debt at £72,026 and council tax arrears of £71,906. Rent arrears accounted for a further £39,667, while water arrears stood at £32,190.

The report also highlights the scale of financial intervention being provided locally. During the year, the debt team supported 140 people with Debt Relief Order advice and helped write off £211,270 of debt for 12 clients.

While the report focuses on the performance of the Newtown Advice Project, it also paints a wider picture of financial pressures facing some households in the town, with rising debt levels, ongoing reliance on disability benefits and continued demand for support with energy costs among the issues highlighted.

The annual report will be considered by Newtown Town Council’s Resources Committee next week.