Essential Bills Debt Soars for Low-Income Households
UKPulse Consumer Desk
Charity StepChange warns that high levels of debt on essential bills have become the 'new normal' for many low-income households, with average arrears rising last year.
- Average arrears for housing, utilities and council tax rose in 2023
- Low-income households struggling to pay essential bills due to price increases
- Government support schemes may not be sufficient to mitigate the impact
High levels of debt on essential UK bills have become the ‘new normal’ for many low-income households, charity StepChange warned. The organisation cited figures showing that average arrears for housing, utilities and council tax all rose last year.
The charity attributed the increase in debt to people's budgets being stretched by higher prices for goods and services, as well as the ongoing energy crisis.
According to the government's own data, the number of households in England struggling to pay their council tax arrears has risen significantly since 2020. The situation is particularly dire in London, where over a quarter of all council tax accounts are now in arrears.
The government has introduced various support schemes to help households with energy costs and debt, but campaigners argue that these measures may not be enough to mitigate the impact on low-income families.
Why this matters: This story matters as it highlights the significant financial struggles faced by many low-income households in the UK, which could have long-term consequences for their wellbeing and economic stability.
What this means for you: This story may affect household budgets, bills, savings, benefits or financial planning depending on your circumstances. Check whether the change applies to you before making financial decisions.