Cost-of-living crisis shows no sign of easing amid Christmas debt warning | UK | News

The cost of living crisis shows no signs of abating, with Christmas only adding to the strained budgets of struggling households, aid workers said. chancellor Rachel Reeves Last month’s budget promised to improve living standards, including raising the minimum wage, freezing rail fares and removing the two-child allowance limit.

But for those on the front lines cost of living crisisThe pressure on families is no easier than it was in the 2010s, as some face even greater debts and the risk of falling further into debt. Christmas. The grim picture painted by those helping Britain’s indebted families emerges as the charity Christians Against Poverty (CAP) warns that more than five million Britons admit they think Christmas adds to their financial woes. According to CAP, one in three children will face Christmas in poverty this year.

Jon Taylor is debt center manager at Beacon CAP Partnership, a group of churches in south London that work with CAP to help people get their debt under control. Mr Taylor told the Daily Express he had seen no tangible improvement in the cost of living crisis in the 10 years he had been helping people.

He said: “I’m as busy as ever. I don’t think I’ll be recovering from these challenges anytime soon… There are a lot of clients I’m seeing now; it’s not sustainable, their expenses don’t match their income. I don’t remember it being as bad as it was 10 years ago.”

The survey, commissioned by CAP and conducted by Opinium and shared exclusively with the Daily Express, shows around 5.3 million people in Britain feel Christmas has put extra financial pressure on them when they are already struggling.

In total, 12.5 million (23%) UK adults say a family member or friend has received help from a local church or Christian organization in the last five years, according to CAP’s research.

Millions of people are forced to choose between keeping warm and feeding their children this Christmas, the charity warns. It has launched a £300,000 Christmas appeal to help families cope.

While Mr Taylor suggested things were getting worse in some households, he welcomed the support church groups and CAP were offering people.

This includes Beverley Charlie, 74, from Streatham, South London, who is said to owe £5,000 in unpaid council tax last Christmas. This was despite him keeping track of all his bills and payments throughout his life. Miss Charlie disputed the debt but eventually had to pay it off.

The retired hotel manager said: “I was really panicking. It was scary. I was crying openly. I kept thinking I was going to lose my house. I was sick and had constant angina attacks. I was absolutely terrified.”

Miss Charlie, who was recovering from cancer at the time, told how anxious she became whenever there was a knock on her front door, fearing bailiffs were coming to take her furniture.

Unable to pay her debt, a worried Miss Charlie declared herself bankrupt with the help and advice of CAP, Mr Taylor and colleagues during an extremely stressful time.

Miss Charlie, who is almost blind, said everything was back to normal now, adding: “I’m so relieved now. I’ve worked all my life and this was the first loan I ever had.”

“I’m one of those people who doesn’t like to buy anything unless I can afford it. I never, never buy.”

26-year-old Jade, who did not want her full name to be disclosed, fell into debt with her former partner in 2022. The mother-of-three, from Barnstaple, said her and her ex’s efforts to appear to have money had left them behind on rent payments and bills.

He said: “It was a dark and terrible life; he wasn’t going anywhere or getting anywhere. He was just living in poverty.”

The young mother said that she often went without food so that her children could eat, and eventually asked her mother for help.

Debts continued to accumulate to the point of exceeding £6,000. The electricity provider alone wanted £200 a month in debt repayment, which was more than Jade could afford.

Jade said Christmas was a special nightmare.

He said: “You have a picture in your mind of what Christmas should be like and you want to please everyone by eating and being excited.

“And when that’s not the case, which is the truth, because what you see on TV isn’t Christmas, it doesn’t feel like Christmas. I was just scared; I would try to play happy families but really I was just living in pure fear.”

When her relationship ended and she received a letter from the bailiffs threatening a visit, Jade decided enough was enough.

He contacted the local council, who put him in touch with CAP. The charity brought him together with Ben Warrender, debt center manager at Trinity Church in Barnstaple.

Thanks to the help, Jade was able to obtain a debt relief order that paid off her debts.

Jade said: “Things are really good at the moment. I’m married now. I don’t feel stuck anymore. My life has changed.”

While the financial cost of Christmas used to be alarming, now is the time to celebrate.

Jade said: “It feels so much better than before.”

Regarding being in debt, he added: “There’s nothing wrong with getting help. Everyone is trying to show that everything is okay. Debt is nothing to be ashamed of.”

Mr Warrender told the Daily Express everyone has a different reason for getting into debt. A job loss, the end of a relationship, or other changes in circumstances can cause this.

He said: “We’re seeing a lot about rent arrears, gas, electricity, water bills and council tax. One trend we’re seeing is things like more primary debt, rent and mortgage arrears that will impact your home.”

So far this year, Mr Warrender and his colleagues have helped 23 households become debt-free. He said debts these days were larger than he had seen in the past, averaging £14,330.

He said: “This is a worrying trend. Debts are bigger and more complex. I’ve been in homes where there was nothing but sandwiches in the fridge, where parents fed their children but didn’t eat themselves.”

Asked how bad the cost of living crisis is, Mr Warrender said: “It’s still a tough time. It’s still tough.”