Fergus O'Dowd
Ceist:30 Mr. O’Dowd asked the Minister for Social and Family Affairs the amount of debt that clients of the MABS are in; their average earnings per annum; and if he will make a statement on the matter. [30871/05]
Amharc ar fhreagraThursday, 27 October 2005
Ceisteanna (47)
Freagraí scríofa
The Money Advice and Budgeting Service is provided by 52 MABS companies operating out of 65 centres throughout the country. At present, there are 150 money advisers and 78 administrative staff working in the MABS. A total of €13.62 million has been allocated to the service in 2005, which is an increase of €2.2 million over the 2004 allocations.
During the 12 month period up to December 2004, the Money Advice and Budgeting Service dealt with approximately 16,000 new clients. It deals with approximately 13,600 clients on an ongoing basis. An average of 1,700 persons per month visit the MABS website at www.mabs.ie.
A detailed breakdown of the current amount of debt and average earnings sought by the Deputy is not available. However, these matters were examined in 2000. At that time income levels of MABS clients were generally low. Approximately one third of clients had an income of less than £5,000 and a further 50% had incomes between £5,000 and £12,000. Some 71 % of clients were in receipt of some sort of social welfare.
At that time MABS clients owed over £20 million in total debt to various creditors. Approximately £7 million or one third of total debt was in arrears. The main organisations that arrears were owed to were financial institutions — 44% of arrears and 40% of clients — local authorities — 9% of arrears and 31% of clients — utilities — 6% of arrears and up to 41% of clients depending on the utility involved — and moneylenders — 3% of arrears and 10% of clients.
The majority of clients had at least two debts in arrears. Nearly one quarter had six or more debts in arrears. One third of clients had total arrears of under £200; one third had arrears ranging between £200 and £999 while the remaining third had arrears in excess of £1,000.
The MABS has just developed a new software application Money Advice and Budgeting Service integrated system, MABSIS, which will enable a fully automated payment system to be put in place on a national basis. This software application will have a database that facilitates the entry and management of a range of data relevant to the work of MABS. Reports will be produced to facilitate the efficient management of each MABS office and for policy purposes.