THREE million people fear falling into debt within six months as the government fails to help struggling households, a poll has found.
People with incomes below £21,000 a year will fall deep into the cycle of debt and poverty, as at least 40% of their income was spent on paying down debt, even before inflation hit. reaches 6.2%.
And research from anti-poverty group the Jubilee Debt Campaign shows that 1.3 million people, including 500,000 children, will fall into absolute poverty as Chancellor Rishi Sunak refuses to help those who need it most.
Benefits will only increase by 3.1% in April, while inflation is expected to average close to 8% this year.
Increases in National Insurance, household energy bills and council tax from this week will push more people into debt.
UK PARLIAMENT/AFP via Getty Imag)
Heidi Chow, Executive Director of the Jubilee Debt Campaign, said: “As struggling households choose between starving or freezing in the face of soaring costs, it is outrageous that there is a tsunami of debt in the horizon for half of Britain’s adult population. ”
She called on the government to register “large amounts of problematic debt”.
Dean Burn, 62, from Manchester, worked for 41 years before losing his job during the pandemic. He told the Mirror: “I’m still juggling debt. I have relied on food banks for the past 12 months.
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Shadow Work and Pensions Secretary Jon Ashworth criticized Mr Sunak’s spring statement for failing to help pensioners amid a cost of living crisis.
Mr Ashworth said: ‘It’s a chancellor who is raising taxes, it’s Mr Tax and it’s Britons who are paying the price.’
Tensions between Prime Minister Boris Johnson and Mr Sunak, whose billionaire wife Akshata Murthy yesterday received a Deliveroo to take away from Downing Street, are said to be high as private polls have shown the cost of living to be the no. 1 from the public, above the NHS, according to the Sunday Times.