MOST people who go to the Citizen's Advice Bureau (CAB) with debt problems also have mental health issues, a meeting in York has heard.

Alex Phillips, of the Financial Conduct Authority, said a year-long stint with the CAB had shown a clear correlation between mental health difficulty and debt and showed the need for people to be correctly and sympathetically assessed before being given credit.

Mr Phillips was one of the speakers to address delegates at a York meeting to mark the 75th anniversary of the charity, which was set up on the eve of the Second World War to offer advice on housing, food and debt.

Carol Barber, acting chief executive of York CAB, said the charity has two aims: "The public are very aware of the first, which is solving people's problems, but probably less aware we use the evidence of what we see to campaign for change.

"We are focusing on the campaign for change and how the problems we are dealing with and what we want to bring up in the future."

She said Mr Phillip's findings reflected what she and her colleagues are seeing across North Yorkshire. "Debt can arise from mental health and mental health issues can arise from debt. Certainly we see a lot of people coming to us with anxiety and depression that is a reaction to the situation.

"It can be very alarming and often they don't know where to turn. Clients rely on the support from families and they can be sofa surfing. They look at different ways of dealing with the issue before they come to the CAB."

Mr Phillips said one in 11 people in the UK have debt arrears but this rises to one in four with mental health problems and one in three among those with psychotic conditions His findings are due to be published in a national report alongside a series of recommendations which include training of staff at financial firms to encourage disclosure of mental health issues and to ensure a greater clarity of the obligations firms need to adhere to.

Other speakers at the event at West Offices included Julia Unwin, of the Joseph Rowntree Foundation, and Dr Charlotte O'Brien of the CAB and University of York.