Everyday in the UK
Personal Debt in the UK
The population of the UK grew by an estimated 777 people a day between 2019 and 2020.
- On average, a UK household spends £4.28 a day on water, electricity, and gas.
- 332 people a day were declared insolvent or bankrupt in England and Wales in January 2021 to March 2022. This was equivalent to one person every 4 minutes & 20 seconds.
- In Northern Ireland in February 2022, there were 5.6 insolvencies per day and in Scotland in the three months to December 2021 there was 22.4 insolvencies per day.
- Citizens Advice Bureaux in England and Wales dealt with 2,001 debt issues every day in the year to February 2022.
- 4.2 properties were repossessed every day in October to December 2021 in the UK, or one every 5 hours and 40 minutes.
- The number of UK mortgages with arrears of over 2.5% of the remaining balance rose by 11.7 a day in the year to December 2021.
- The number of people unemployed in the UK fell by 1,121 per day in the twelve months to February 2022.
- 833 people a day reported they had become redundant in December to February 2022.
- Net lending to individuals and housing associations in the UK grew by £226.6 million a day in February 2022.
- Government debt increased by £334 million a day in the 3 months to March 2022.
- Borrowers paid £124 million a day in interest in February 2022.
- It costs an average of £24.44 per day for a couple to raise a child from birth to the age of 18.
- For a lone parent family, the cost of raising a child comes to £29.50 per day.
- 27.9 mortgage possession claims and 18.0 mortgage possession orders were made every day in England and Wales in October to December 2021.
- 157 landlord possession claims and 74.4 landlord possession orders were made every day.
Arising from Coronavirus pandemic
During the pandemic, health, economic and policy impacts have interacted with each other. The UK is also currently facing a worsening cost of living crisis – with rising inflation arguably linked to pandemic-related economic disruption. Following are some striking numbers that have emerged in the last few weeks:
▪ 22%: The percentage by which household spending fell during the first two quarters of the pandemic, to reach its lowest point. However, spending quickly recovered in the following quarter by 19.6% and had almost returned to pre-coronavirus levels after two years. Contrastingly, during the 2008 financial crisis, household spending reached its lowest level in the fifth quarter after the initial shock, after falling by 6%. Household spending then took over five years to recover to pre-crisis levels (ONS).
▪ 3.2 million: the number of UK adults who have missed some form of major payment over the past two years (The Mortgage Lender).
▪ 11%: the proportion of StepChange’s clients who said that increases in the cost of living were now their main reason for debt. This is now the fourth most commonly cited unique reason among new clients.
▪ 31% of UK adults with a credit card don’t pay it off completely every month (The Mortgage Lender).
▪ 32%: the proportion of people who feel that it will still take more than a year for life to return to normal after the pandemic. 12% of people thought that life would never return to normal. Disabled people were more likely than non-disabled people to feel that life would never return to normal. People who could afford an unexpected £850 expense were more likely than those who couldn’t to feel that life had already returned to normal (ONS).
▪ 16% of people who said they could afford an unexpected expense of £850 also said they were spending more time outside due to the pandemic, whereas only 10% of people who couldn’t afford the expense said they were spending more time outdoors. This means that people who cannot afford an unexpected expense are less likely to spend more time outdoors, perhaps due to fear of becoming ill with Covid. People unable to afford an unexpected expense were also less likely to report walking or cycling more (11% of those unable to afford an expense compared with 18% of those who were able to afford one), and working from home (13% compared with 23%) (ONS).
Statistics Source: http//www.themoneycharity.org.uk
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