Analysts predict consumer price inflation slowed from May’s 2.3% amid lower energy prices
Unsecured household debt is set to rise by more than £1,600 this year as families continue to struggle with the cost of living crisis, according to new TUC analysis.
Unsecured debt (loans, credit cards, purchase hire agreements) is on course to increase by 9.4% in real terms (adjusted for inflation), on average, per household this year. Over a quarter of people say they have taken out loans or borrowed on credit cards to cover unexpected bills since the start of the year.
4 in 10 (42%) say they’ve cut back on essentials like food and utility spending this year. And this number rises to nearly 1 in 2 (47%) for women.
6 in 10 (60%) say they have cut back on non-essential spending like dining out and entertainment since the beginning of the year.
Nearly a fifth (19%) of respondents say they have fallen behind on household bills this year – a number that rises to over 1 in 4 (28%) for people aged 18-24.
Over quarter (27%) say have they taken out debt (loans, credit) to cover unexpected bills since the start of the year. This number shoots up to over a third (37%) for adults aged 25-49 – when lots of families raise children.
These findings show out of touch this Conservative government is with people’s struggles. While the Tories boast about their plan working, households across Britain are being pushed further into debt.
No one should have to rely on credit cards and loans to make ends meet. But after 14 years of flatlining wages – and the worst cost of living crisis in generations – many families are at breaking point.
