Three million fear falling into debt in 6 months as Sunak fails struggling families

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Anti-poverty research from Jubilee Debt Campaign shows 1.3million people, including 500,000 kids, will fall into absolute poverty as Chancellor Rishi Sunak refuses to help those in greatest need

THREE million people fear falling into debt within six months as the Government fails to help struggling households, a poll revealed.

People with incomes of less than £21,000 per year will fall deep into the debt-poverty cycle as at least 40% of their income had been going on debt repayments, even before inflation rocketed to 6.2%.

And the Jubilee Debt Campaign anti-poverty group research shows 1.3 million people, including 500,000 kids, will fall into absolute poverty as Chancellor Rishi Sunak refuses to help those in greatest need.

Benefits will rise just 3.1% in April while inflation is expected to average almost 8% this year.

Rises in National Insurance, household energy bills and council tax from this week will push more people into debt.

Heidi Chow, Executive Director of the Jubilee Debt Campaign, said: “As struggling households choose between starving or freezing in the face of soaring costs, it’s scandalous, that there is a tsunami of debt on the horizon for half the adult population of Britain.”

She called on the Government to write down “large amounts of problem debt”.

Dean Burn, 62, from Manchester, worked for 41 years before losing his job during the pandemic. He told the Mirror: “I’m always juggling debts. I’ve relied on food banks these past 12 months.”

Shadow Work and Pensions Secretary Jon Ashworth blasted Mr Sunak’s Spring Statement for failing to help pensioners amid a cost of living crisis.

Mr Ashworth said: “He is a tax-rising Chancellor, he is Mr Tax and it’s the British people who pay the price.”

Tensions between PM Boris Johnson and Mr Sunak, whose billionaire wife Akshata Murthy got a Deliveroo takeaway in Downing Street yesterday, are said to be high as private polling reportedly shows the cost of living is the public’s No1 concern, above the NHS, according to the Sunday Times.