Numbers seeking advice from Mabs up 20% amid cost-of-living crisis 

In their recent statements announcing price reductions, energy companies have pointed to their collaborations with Mabs to support people who are in difficulty paying their bills.

The number of new clients of the Money Advice and Budgeting Service (Mabs) rose 20% last year, as the cost-of-living crisis heightened and families struggled with sky-high energy and grocery bills.

New statistics revealed in the Citizens Information Board’s annual report show Mabs saw 16,115 new clients last year, while its helpline received 26,772 calls — a 14% jump on the previous year.

The increase in demand for Mabs' services came during a year of soaring inflation, which peaked at 9.2% in October 2022. If inflation stays above 5% in September, it will mark two straight years of inflation above this mark, according to CSO figures.

As households struggled with these high costs, organisations such as St Vincent de Paul and Barnardos reported increased demand for their services.

These latest figures also show households turned to Mabs in greater numbers, with an 81% increase in the number of queries handled over WhatsApp.

With mortgage interest rates also surging, Mabs recorded a 12% rise in households supported by financial advice under its Abhaile service, which supports mortgage holders facing arrears.

The Citizen’s Information Board, of which Mabs forms a part, also said it had a large increase in requests for information on certain areas last year. This included 32,912 queries about the fuel allowance, more than double the number of queries recorded in 2021.

It also included a 60% increase in demand for information on supplementary welfare schemes and a 144% increase in additional needs payment enquiries.

Eviction ban

South Munster Mabs, for example, recorded a spike in calls when the eviction ban lifted earlier this year. It said these calls came alongside a high volume of people seeking support due to rising costs across the board.

Regional manager Ursula Collins said: “We have recorded an increase in people with concerns following the lifting of the eviction ban, many who have immediately been affected, and those who are concerned about when an eviction notice comes.

We are here, for free and in confidence, online or in-person appointments.” 

In their recent statements announcing price reductions, energy companies have pointed to their collaborations with Mabs to support people who are in difficulty paying their bills.

The likes of Electric Ireland have pointed to their “hardship fund” for customers facing difficulty paying their bills, with such funds administered by Mabs and the Society of St Vincent de Paul.

It is widely expected further support for households will be forthcoming in next month’s budget. It is likely to include a further energy credit along the lines of what was announced last year, along with a hike in social welfare payments such as the State pension.

Social Justice Ireland this week urged the Government not to “repeat the mistakes” of last year’s budget by prioritising one-off payments to support households. It said this reliance on one-off measures increased the rich-poor gap by €199 over the course of the year, now standing at almost €1,000 a week.

“Government must make income adequacy and the benchmarking of social welfare rates to average earnings a key focus of Budget 2024,” its chief executive John McGeady said. 

“If not, those in society who need the greatest assistance with making ends meet will be left behind again.”