pounds 1.8m BID FOR DEBTS ADVICE.

Byline: By NEIL HODGSON 

MERSEYSIDE union leaders have bid for pounds 1.8m of government funding to set up a debt counselling network for the north west.

The money could also be used to increase the number of credit unions throughout the region to help people denied bank accounts and provide redundancy counselling.

Merseyside Trades Councils president Alec McFadden submitted the bid to the department of trade and industry ahead of last Friday's midnight deadline.

The DTI has set aside pounds 45m over the next two years to fund face-to-face debt advice, the biggest amount the government has pledged for such services which Mr McFadden believes is an indication of imminent recession.

He said: "Britain has the lowest state benefits and redundancy payments in Europe. The British state benefit system is not very generous and the need for an army of debt advisers is both obvious and necessary.

"The level of house repossessions applied for in October was 30,000 and over 27,000 were successful, thereby throwing 27,000 families out of their homes."

He added: "We are very pleased that the government has recognised the major problem facing thousands of the population who have accrued massive credit card debts and very high mortgage repayments."

Mr McFadden said the funding would support the training and employment of 21 debt counsellors who would serve the north west.

He added: "We hope to hear about our bid by the end of February."

Last week unemployment hit 1.5m and the government revealed that last November's rise in jobless was the biggest in 12 years.

A week ago the National Debtline also revealed they had a massive increase in calls since New Year and had been unable to answer two thirds of inquiries.

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