Some one in seven people have fallen behind on essential bills – including energy, water, mobile phone and broadband bills, council tax, rent or mortgage payments – the equivalent of seven million people in the UK, according to new research from Citizens Advice.
A poll of 6,004 people, conducted by ICM Unlimited for the charity, also reveals 60% of people with children under 18 report having already cut down on any regular or non-essential spending, to ensure their children don’t go without.
Citizens Advice’s research indicates the situation is particularly tough for certain groups.
Black and ethnic minority (BAME) groups, parents and carers, and people who were furloughed are all more likely to have fallen behind.
28% – twice the UK average – of BAME people are behind on essential bills or rent. This rises to 31% for Black people while a quarter of those with children under 18 in their house are behind on essential bills or rent
One in four people who were furloughed have fallen behind on essential bills or rent
A majority of the UK population believe that those who’ve fallen into debt because of coronavirus and lockdown restrictions should get help from the government to pay it back. This view has majority support across all regions of the UK, age groups and socio-economic backgrounds.
The number of people Citizens Advice helps with debt is climbing as economic hardship worsens and protections for people unable to pay essential bills have weakened since the first lockdown.
Citizens Advice is calling for targeted help for people who’ve built up debts because of a pandemic no-one could have planned for. The government should focus on council tax and rent arrears where the consequences for non-payment are most severe and the levels of debts are greatest. For rent arrears, the government should consider a system of grants and government-backed loans – comparable to schemes in Scotland and Wales – to help people pay back their rent arrears sustainably and stay in their homes.
Alistair Cromwell, Acting Chief Executive of Citizens Advice, said:
“We agree with the British public that people shouldn’t be left on their own to sink or swim.
“It has become increasingly clear that, despite the government’s best efforts to protect incomes, a growing number of people have fallen into debt because of the coronavirus pandemic. Some groups, notably ethnic minorities, parents and carers, and those furloughed, are suffering more than most.
“The government has taken strong action to try to protect people from the worst of the immediate economic shock. Now they need a clear plan to protect people from the damaging consequences of long-term debt, and help strengthen the economic recovery.“
