Four million people forced into debt to pay for heating and food, new report finds
New research shows millions are losing £343 every month
- New research indicates four million people in the UK are losing money every month after covering essential costs, affecting over 860,000 children.
- These households are in a "negative budget," meaning they lack sufficient funds for basic necessities like food, energy, or housing, with an average monthly shortfall of £343.
- Citizens Advice reports that more than half of their debt clients are in this predicament, carrying an average debt of £9,963 per household.
- An additional 320,000 people are at risk of falling into financial crisis, a figure projected to increase to 580,000 by 2025/26.
- Citizens Advice and Debt Justice are calling on the government to provide targeted utility bill support, increase local housing allowance, and abolish the two-child benefit cap.