StepChange Debt Charity is urging the Government for more support as new polling indicates that 12% of UK adults have borrowed money in the last year to manage their finances.
The charity’s data, provided by YouGov, shows a significant rise in people struggling with household bills and credit commitments, increasing from 34% to 40% in just four months.
This equates to an estimated 21 million people now finding it difficult to keep up, a jump of 3.5 million individuals.
The survey also revealed that 24% of respondents have had to ration utilities like heating, electricity, or water to afford credit repayments in the last year, an increase from 21% in September 2023.
The concern extends to unexpected expenses, with 12% of people unable to cover a sudden £1,000 cost without borrowing, rising to 19% among single parents.
With the Household Support Fund ending in March, StepChange highlights the growing need for assistance, especially as energy debt, according to Ofgem estimates, has hit a record £2.9bn. StepChange clients have similarly experienced a 28% rise in average energy arrears in 2023.
Vikki Brownridge, CEO at StepChange, stresses the importance of government action in the upcoming Spring Budget on 6th March, stating: “In an election year, tackling such widespread problem debt and improving households’ financial security should be at the top of the agenda for current and potential new governments.”
Brownridge advocates for targeted support for low-income households, including the possibility of writing off energy debt for those unable to pay and extending the Household Support Fund to prevent further financial hardship.
