A report published today by Citizens Advice Scotland (CAS) revealed that poorer Scots often pay above average costs for energy, telecoms and financial services, which in turn makes their financial situation worse and then adversely affects their health and relationships.

Polling a number of lower-income Scots, the ‘Paying More to be Poor’ research found that low income families are more likely to use more expensive pre-payment meters (PPMs). Only 24 per cent of PPM users switched their energy supplier in the past three years, with those living in the most deprived areas of the country less likely to do so.

Poorer Scots who have mobile phones were also found to be more likely to use more expensive Pay As You Go payment methods. They were also more likely to be without mobile phones, and so are hit hardest by the rise in landline costs. Low income consumers are also less likely to switch phone suppliers.

Low income consumers were also hit hardest when it comes to financial services as they often take out credit or loans without understanding the full costs involved, and so end up re-paying much more than they can afford. Others told CAS they had no home contents insurance, as they find it un-affordable.

The charity also asked these lower-income Scots what impact their financial situation has on them:

CAS spokesman Patrick Hogan said: “Many charities have published evidence in recent years which shows that too many people in Scotland struggle on low incomes. 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. This cannot be right, and needs to be addressed.

“In our report today we make a number of recommendations about how to address this problem. We pledge that we will work together with those who supply essential services to persuade them to bring down costs and offer better deals to those on low incomes. We will also raise awareness of cost traps and the importance of making informed consumer choice.

“The market must offer better value for consumers of all income levels. Poverty should not breed even more poverty.”