Debt advice provider, Payplan has called on the Chancellor to help those struggling to get on the housing ladder with the announcement of the budget this week.
Jane Clack, Money Advisor at PayPlan said “In Wednesday’s announcement, I would like to see the Chancellor think more about how the budget can help people who are already struggling to make ends meet and who are getting into debt purely out of necessity, rather than through frivolous spending. Our clients are being affected by the rising cost of living, and more and more of them are finding themselves ‘just about managing’. Our clients are typical of the many families who are struggling to keep their heads above water.”
“Particular pinch points for our clients tend to be around the large amounts of money they are paying towards rent and childcare each month, as well as not being able to access financial help when they need it the most. I would like to see their financial struggles being addressed, especially for those being pushed into the red through no fault of their own. For me, it’s important that the government considers those who don’t have any disposable income to put towards that initial first deposit.”
“On average, those of our clients who are renting spend £525 every month on rent, which equates to approximately 53% of their total monthly earnings. Furthermore, the proportion of those who are renting and seeking our debt advice is rising, year-on-year. It would also be good for our clients if they could get more help towards childcare costs. On average our clients find that a large proportion of their income, £267.96 per month, goes towards childcare costs, while others often rely on families and friends to provide childcare support which allows them to go to work. Childcare costs are hitting our struggling parents really hard.”
“One final area where it would be good for the Chancellor make some changes is to Universal Credit. I would like to see better support given to those on zero hours contracts for example -to help them get the financial support they need, when they need it the most, and quickly. Our clients are finding that they are unable to get the help they need as quickly as they need it, putting them into debt. The budget announcement next week needs to put those already on the breadline at the top of the priority list – we need some plans to reduce existing problem debt, not increase it further.”