One in 9 people, the equivalent of 6 million people across the UK, have reported falling behind on household bills because of coronavirus according to new research from Citizens Advice. With protections against eviction for renters and the ban on face-to-face bailiff collection both ending this weekend, the charity warns that many of those struggling may face harsh enforcement.

Those who care for someone older or younger,those who said they were shielding during the pandemic and key workers are all at least twice as likely to have fallen behind on a household bill because of coronavirus, according to a nationally representative poll of 6,000 people.

This burgeoning coronavirus debt crisis has already had serious consequences for those behind on bills. Around a fifth of those behind on their bills have had to go without essentials – half of these people have gone without food. One in five have had to sell possessions to make ends meet during the pandemic.

Since March, the government has suspended the enforcement of repossession orders and barred bailiffs from visiting people’s homes. However, this Sunday (23 August) both of these protections expire. This will leave people behind on their rent at the risk of eviction and those behind on bills, especially council tax, at risk of having the bailiffs knocking on their door.

Citizens Advice fears that many of those now in debt may never escape it. People who sought help with debt since March this year will need, on average, two and half years to pay back their current priority debts, which include household bills.

A lasting legacy of coronavirus debt would be harmful for people affected. The existing insolvency mechanisms would be slow, difficult to deliver and have damaging effects on their long-term financial situation, including impacting on credit scores.

Citizens Advice also fears that businesses, landlords and councils might face the prospect of being saddled with a mountain of unrecoverable debts that could affect their own viability. This, along with reduced consumer spending as people pay down debt, could hamper the wider economic recovery.

People in debt because of coronavirus need urgent financial support in order to deliver on the Prime Minister’s pledge to ‘build back better’. Citizens Advice is calling for one-off or time-limited financial support for arrears built up because of coronavirus, with the cost of relief shared fairly between government, creditors, and individuals. This would be tailored to each sector but could include grants, payment matching or government-backed loans.

Dame Gillian Guy, Chief Executive of Citizens Advice, said:

“As the government takes steps to try to kickstart the economy, it must not forget the millions who’ve fallen into debt because of a crisis no-one could have foreseen.

“Protections put in place by the government, businesses and regulators have staved off the worst consequences of lockdown debt – so far. But with these measures beginning to end, millions will now face the repercussions.

“It is not right that people who’ve followed government guidance by shielding, stayed at home to care for others, been forced to work less, or lost their jobs altogether should be the ones left facing a financial black hole.

“Government and businesses must help them now. Financial support for those who’ve fallen into debt must be prioritised to free them from the damaging consequences of long-term debt, and help strengthen the economic recovery.”

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