Nearly Two Thirds of Families on Universal Credit Forced Into Lockdown Debt ‘Nightmare’

Industry News | 17/06/20

Nearly two thirds of hard-pressed families on Universal Credit are borrowing money to stay afloat during the Covid-19 emergency, new research by the Joseph Rowntree Foundation (JRF) and Save the Children reveals. The survey found 86 per cent of those with children on Universal Credit or Child Tax Credits have faced extra household costs owing to the pandemic. Half of all those surveyed say they are behind on rent or other essential bills. Income losses and the additional costs of lockdown have put increased pressure on already overstretched family budgets: 70% of families surveyed said they have had to cut back on food and other essentials, while 60% of families on Universal Credit or Child Tax Credit have been forced to borrow money including using payday loans or credit cards.

Source: Save the Children