1 in 7 are unable to pay essential household bills, warns Citizens Advice

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ONE in seven people are currently unable to pay essential households bills, according to research from Citizens Advice. 

It comes as the coronavirus pandemic continues to wreak havoc on personal finances and plunge more people into debt. 

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Seven million people could be struggling to pay their bills right now.

Citizens Advice says the number of people it helps with debt has been rapidly climbing as the economic hardship worsens and protections for people unable to pay bills are withdrawn.

The situation is particularly tough for parents, people from black and ethnic minority groups and people who were furloughed, the charity network’s research found. 

It commissioned ICM Unlimited to conduct a poll of 6,004 people in the UK, asking about their current financial situation and how the government should help support them. 

The survey found that 14% of people – or one in seven – have fallen behind on household bills, including energy, water, mobile phone, broadband, council tax, and rent or mortgage payments.

This equates to seven million people in the UK.

It also comes as an increase of 700,000 people in the three months since September when similar research was carried out by the organisation.

Then, one in nine (11%) of people said they had fallen behind on their bills, which worked out to around 6.3 million Brits.

Citizen Advice’s latest data shows that 60% of people with children under 18 have already cut down on any regular or non-essential spending since the pandemic began. 

Around a quarter of both parents (26%) and people who were furloughed (24%) are behind on their essential bills and rent, the research found.

Meanwhile, 28% of BAME people (twice the UK average) are struggling to pay their bills and rent. This rises to 31% for Black people.

Citizens Advice said the majority of recipients (62%) believe those who’ve fallen into debt because of coronavirus should get help from the government to pay it back. 

This majority opinion was reflected across all regions of the UK, age groups and socio-economic backgrounds, it added.

In the three months from September to November, the charity network said they have helped almost 85,000 people with debt issues.

This compares to over 66,000 in the period June to August, showing an increase of over 28%.

It is now calling for the Government to give targeted support for those who’ve amassed debt because of the pandemic.

Alistair Cromwell, acting chief executive of Citizens Advice, said: “We agree with the British public that people shouldn’t be left on their own to sink or swim. 

“It has become increasingly clear that, despite the government’s best efforts to protect incomes, a growing number of people have fallen into debt because of the coronavirus pandemic.

“Some groups, notably ethnic minorities, parents and carers, and those furloughed, are suffering more than most. 

“The government has taken strong action to try to protect people from the worst of the immediate economic shock. Now they need a clear plan to protect people from the damaging consequences of long-term debt, and help strengthen the economic recovery.“

It comes after Chancellor Rishi Sunak cut the amount of money available for low-wage tenants to help pay rent.

Meanwhile, debt charities have warned parents not to use “buy now pay later” schemes for Christmas shopping.

For tips on how to save on your energy bills this winter, we’ve put together a comprehensive guide.