Under lockdown and under financial pressure Number struggling with bills rises during pandemic P

EOPLE are more than twice as likely to be finding it difficult to pay their bills now than before lockdown started. One in 20 people in Britain (5%) said it was difficult or very difficult to pay their usual household bills before the coronavirus outbreak started.

However, that has now risen to one in eight (12%), according to a survey by the Office for National Statistics.

Money and debt advice services said these figures and their own research showed the devastating impact of coronavirus on household finances, but said support was available.

The 'Near the Cliff Edge' report from Citizens Advice found an estimated six million people have fallen behind on a household bill due to coronavirus and lockdown measures.

Four million had fallen behind on rent, council tax or a telecoms bill.

The protections for both eviction and for face-to-face enforcement from bailiffs end on August 23, while other consumer credit protections (i.e. mortgage holidays and motor finance payments) don't expire until the end of October.

Eileen Pevreall, Digital, Marketing and IT Director at the Money and Pensions Service, said, since March, more than one million people had come to the Money and Pensions Service for help dealing with the financial impact of Covid-19, with 1.3 million looking for benefits help and over 100,000 viewing mortgage payment holidays information.

She said: “From our experiences on the financial frontline these last few months, we know that many people are facing complex situations and multiple money issues.

“People should know they are not alone in this and there's support available if they are unsure where to start. There is a new Money Navigator Tool on the Money Advice Service website which is designed to help people find their way at this difficult time."

One in eight people (12%) said they had borrowed more money than usual since the start of the outbreak - with amounts of between £1,000 and £1,999 most common.

Sue Anderson, head of media at StepChange Debt Charity, said “These figures highlight the devastating impact coronavirus has had on many households' finances.

“Our own research has shown that 4.2 million people have borrowed to make ends meet since the start of the pandemic, accumulating a tsunami of £6.1 billion of arrears and debt that is set to grow if left unchecked.

“With payment holidays and forbearance periods set to wind down over the coming months, there is a real danger that many households are facing a cliff-edge to serious hardship unless long-term measures are put in place.”

She said while debt advice services were scaling up capacity, radical measures were needed from the Government, including an overhaul of Universal Credit, a hardship fund to help those affected, and a gradual approach to unwinding job support and payment holidays.