Christians Against Poverty (CAP) has warned that millions of UK households are facing a “household debt crisis,” with families struggling to afford essentials while managing debts they cannot repay.
Its new research highlights that around 9.5 million adults do not earn enough to cover basic living costs, while 9.2 million are burdened by unmanageable debt.
Parents are particularly affected; 27 per cent of households with children under 18 report struggling to repay debt, compared to 14 per cent of adults without children.
Many families face impossible choices, with 30 per cent of indebted adults going without electricity or gas, and over a third skipping meals at least once a week.
CAP's chief executive Stewart McCulloch told Premier Christian News: “We're talking about a large group of us who are struggling to get by. An account we work with showed that, about the bottom 20 percent of earners, their incomes really haven't gone up for a good few years, but inflation has been brutal. Finely balanced finances can be knocked into crisis by such things”.
The charity has urged reforms to ensure liveable incomes, abolish the five-week Universal Credit wait, remove the two-child benefit limit, and expand access to face-to-face debt advice.
CAP has also recommended measures to build financial resilience, including broadening savings schemes and providing money coaching to help households manage their finances with dignity.
Nearly 28 per cent of UK adults, over 15 million people, report daily anxiety about money, underlining the mental health impact of financial strain.
McCulloh said: “The level of anxiety out there is incredible. A statistic we found out this year is that most of our clients have considered taking their own lives before they seek help. These people are in a deep crisis, and that is an indication of the level of stress people have out there”.
The situation reflects a wider challenge for society and the Church, with what practical support is needed. McCulloch added: “The church is doing amazing things, reaching out to people. The Evangelical Alliance survey said a third of churches are now giving some form of financial counselling, and two-thirds are running food banks. If people are struggling, go to your local church; they’ll sort you out.”