Rising pressure on household budgets
In August 2020, 6 million people across the UK had fallen behind on household bills as a result of the pandemic. One year later and inflation has reached 3% - a nine year high - pushing up the cost of essentials and putting further pressure on already stretched budgets.
This month, the rise in the energy price cap pushed bills higher just as 5 million households lost £20 a week through the cut to Universal Credit.
Key covid protections will provide vital support for some families in crisis this winter, but these protections are limited in reach and will end just as energy prices are set to increase even more sharply.
As many households face a difficult winter, there are concerning early warning signs in our data. We are seeing higher demand for debt advice and charitable support, and a growing proportion of people we help with debt can’t cover their essential costs each month. Signs that rising pressures on household budgets are making it harder for people to make ends meet and afford the essentials.