Helping households in debt

Article

Household debt is increasing in the UK. The Covid-19 pandemic has created precisely the kind of shock that turns manageable debt into problem debt, and forces people to enter into debt, or increase their borrowing.

In this report, we examine how the financial impacts of Covid-19 may affect people in different demographic groups and regions and explore experiences of debt and household finance before and during the pandemic.

Across the UK, certain demographic groups are more vulnerable to financial difficulties as a result of the Covid-19 crisis. This includes people who were already worse off before Covid-19, showing another way in which the pandemic has deepened existing inequalities. We also found variations between UK regions in levels of pre-pandemic indebtedness and vulnerability to problem debt.

Our recommendations focus on actions to mitigate the impacts of the pandemic and to help people manage their finances. These should be read in the context of a view that the government needs to support adequate incomes through job protection and creation, and strengthening the social safety net.

Related items

  1. The outside of the BBC building in London with people walking in front of it

    Levelling the playing field: The BBC, Big Tech, and the case for a bold charter

    The upcoming charter renewal is the moment to give the BBC the resources, freedom and mission it needs to engage with technology firms on its own terms.
  2. A lighthouse shines a light into a dark seascape at the edge of a cliff on the coast of Wales

    Britain's strategy for a decade of danger: Our nation, our continent, our world

    Britain's foreign policy needs a grand strategy that clearly defines the country’s strategy for security, growth and migration.

  3. Will planning reform make housing more affordable?

    It is undeniable that housing in England is in crisis.