One in five now borrowing to pay for food and other essential bills

One in five people (over 12 million) now borrowing to pay for food and other essential bills, with half doing so for the first time according to research by Money and Pensions Service, 

The survey of 2,180 UK adults, carried out by the Money and Pensions Service, shows that one in five (23%) have relied on credit or money from family and friends to buy food in the last three months. The same number (23%) have done so for electricity and gas.

Around half of them (43% for food, 53% for utilities) said they’d never had to do this before.

Similar numbers said they’re relying on borrowing to meet the cost of their rent or mortgage (17%, 52% for the first time), healthcare costs like prescriptions and dental treatment (17%, 51%) and paying off other forms of credit (21%, 41%).

The poll also reveals that one in five people (21%) think they will need credit to get through the next three months, with 4% of them saying they definitely would.

Among the remainder, 7% said it was “very likely” and 10% felt it was ‘quite likely’.

An additional 15% of respondents couldn’t rule it out, meaning up to 36% of UK adults could soon be relying on credit to make ends meet.

The results come as the Money and Pensions Service launches a new campaign to reach people who are struggling with cost-of-living pressures, which will run alongside the Government’s Help for Households.

The ‘MoneyHelper Cost of Living Campaign’, which begins today and will include billboards and social media content, aims to raise awareness of the help and guidance available and enable people to make more informed financial decisions. It focuses on MaPS’ MoneyHelper service, which provides free money guidance from an expert in a range of different formats, such as webchat, WhatsApp, telephone and a web form.

Caroline Siarkiewicz, Chief Executive of the Money and Pensions Service, said “Relying on credit or the generosity of family and friends to put food on the table, heat your home and keep a roof over your head can be a constant source of stress. For millions of UK households, it’s also a daily reality.”

“The MoneyHelper Cost of Living Campaign aims to reach everyone who’s worrying about money, so we can show them that free, independent help is available whenever they need it.”

“If you’re already struggling, or you’re worried things are heading that way, it can feel like there’s no way forward. However, the first step to solving money problems is knowing where to turn.”

Fiona Anderson, Managing Director of Cards at Vanquis said “At Vanquis, we have seen a significant 42% increase in annual credit card enquiries from 2021 to 2022, which indicates people are borrowing to cover day-to-day living costs.”

“Staggeringly, there is over £15 billion of unclaimed benefits every year in the UK. This means many people could be missing out on essential financial support that could help them cope with rising costs.”

“We encourage anyone who is concerned about money to use the IncomeMax self-help checklist to check they are receiving all the benefits they are entitled to, whether it’s housing assistance, energy grants or free debt advice. The checklist is packed with resources, tools and links to help people maximise their income.”