Northern Rock’s charitable division has announced plans to pay for a team of personal debt counsellors to help those who have been severely affected by debt problems during the recession.

The Northern Rock Foundation has donated £1.5 million to the North East and Cumbria Citizens Advice Bureau (CAB), providing help for around 8,000 people over the next two years.

A recent report from the CAB showed a significant increase in the number of people appealing for help after struggling with their debt problems in recent months.

The report showed that the number of people struggling with debt issues rose by 17% last year, including a 35% increase in bankruptcy queries and a 23% hike in fuel debt inquiries.

The CAB grant will provide funding to hire 12 counsellors who will be able to offer people face-to-face help and advice regarding their debt problems.

Penny Wilkinson, Northern Rock Foundation’s chief executive, said: “January is a particularly difficult time of year for people with debt problems and in the current financial climate we know that there will be a lot of families in the North East and Cumbria struggling to make ends meet.”

“Our new programme will enable people to get help and advice quickly, giving a practical response to the rising debt problem in our region.” She added.

The Northern Rock Foundation was set up in 1997 but is independent from the Northern Rock bank and is run by its own board of trustees.