Street UK CIC has released its annual Social Impact Report. The report says that stagnant wages and increasing inflation means that household budgets are being squeezed, with more families racking up unsecured debt. High, uncompetitive interest rates offered to the most vulnerable families can lead to further pressure and becoming stuck in a cycle of debt.
Reflecting on Street UK’s Social Impact Report, the CEO, Kashaf Ali, said, “Families that are on low incomes or benefits typically can’t access the financial solutions they need at short notice. The ‘poverty premium’ they face is shocking and leads to a vicious cycle of paying disproportionally high interest rates that make getting out of debt far more difficult. These extra costs add up to £490 per year on average, a considerable amount when household budgets are already facing pressures from rising bills.”