This is the last article you can read this month
You can read more article this month
You can read more articles this month
Sorry your limit is up for this month
Reset on:
Please help support the Morning Star by subscribing here
ALMOST eight in 10 adults in Britain will start the new year in debt, according to research published today.
Most worryingly, much of the debt has been run up to cover everyday living expenses such as food and heating, the study by consumer finance website money.co.uk found.
Topping the debt list are residents of Edinburgh, where the average debt is £18,641, followed by Birmingham (£10,921), London (£10,410) and Newcastle (£10,007).
People in Plymouth are the least indebted, being an average of £3,150 in the red. The debt calculations do not include mortgages.
Salman Haqqi, who specialises in personal finance matter at money.co.uk, said: “Our research shows that it has been a particularly difficult year for the country financially.
“There’s been the coronavirus pandemic and with it unemployment and furlough, plus the rising cost of everyday living to consider.
“One of the most troubling statistics is that 35 per cent of people are using debt to pay for household essentials, showing that the cost of living just isn’t covered by their regular income.”
TUC general secretary Frances O’Grady told the Star: “No family should have to go into debt just to keep up with basic costs like food, heat and rent.
“A big part of the problem is that support in universal credit and sick pay is too low. It’s why so many working families end up at foodbanks.
“And our research found that four in 10 workers would be forced into debt on the current rate of statutory sick pay.
“The Chancellor must fix our broken safety net by raising support to levels that allow people to live with dignity, not debt.”