Everyday in the UK
Personal Debt in the UK
The population of the UK shrunk by an estimated 1,815 people a day between mid-year 2022 and mid-year 2023.
- On average, a UK household spends £5.41 a day on water, electricity, and gas.
- 335 people a day were declared insolvent or bankrupt in England and Wales in the three months to June 2025. This was equivalent to one person every 4 minutes and 18 seconds.
- In Northern Ireland in the three months to June 2025, there were 4.3 insolvencies per day. In Scotland in the three months to June 2025 there was 21.3 insolvencies per day.
- Citizens Advice Bureaux in England and Wales dealt with 1,255 debt issues every day in the year to June 2025.
- 13.6 properties were repossessed every day in January to March 2025 in the UK, or one every 1 hours and 46 minutes.
- The number of UK mortgages with arrears of over 2.5% of the remaining balance fell by 17.2 a day in the year to March 2025.
- The number of people unemployed in the UK increased by 339 per day in the twelve months to May 2025.
- 1,241 people a day reported they had become redundant in March 2025 to May 2025.
- Net lending to individuals and housing associations in the UK increased by £84.7 million a day in May 2025.
- Government debt increased by £546 million a day in the year to June 2025.
- Borrowers paid £232 million a day in interest in May 2025.
- It costs an average of £39.54 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 £44.23 per day.
- 75 mortgage possession claims and 51 mortgage possession orders were made every day in England and Wales in January to March 2025.
- 266 landlord possession claims and 208 landlord possession orders were made every day.
Arising from the current climate
The UK has experienced significant turmoil over the past five years. The pandemic, cost of living and energy crises, high interest rates and the economic policies of the new US administration have affected the lives and finances of many people across the UK. Last month we featured the possible impacts of Trump’s tariffs on prices in the UK. This month we look at the uncertainty currently affecting the UK economy, with money statistics both positive and negative, leaving the Bank of England unsure when and how far to lower the base rate of interest.
Positives:
- The UK Services Purchasing Managers Index increased to 52.8 in June (readings above 50 indicate growth) suggesting that services businesses continued to recover from April’s Trump tariff shock (S&P Global)
- The Government announced that it will pay a winter fuel payment of between £100 and £300 to pensioners with incomes up to £35,000 per year (around nine million pensioners in total) for the winter of 2025-26 (Gov.UK)
- The Energy Price Cap fell by 7% on 1 July 2025, reducing average annual energy costs by £129 per year (Ofgem)
- GDP is estimated to have grown by 0.5% in the three months to May (ONS, see page 19)
- The Bank of England reduced the base rate of interest from 4.5% to 4.25% in May 2025 (Bank of England)
- UK GDP is forecast to increase by 1.0-1.4% in 2025 (Bank of England, IMF, OECD, Conference Board) Negatives:
Negatives:
- Inflation continued to be higher than the Bank of England target, increasing to 3.6% in the year to June 2025 (ONS, see page 19)
- The volume of retail sales in Great Britain fell by 2.7% in May 2025 (ONS)
- GDP fell by 0.3% in April and by 0.1% in May (ONS, see page 19)
- Unemployment rose by 98,400 in the three months to May, reaching 4.7% of the workforce (ONS see page 20), but affecting 12.2% of 18-24 year-olds, of whom 173,000 had been unemployed for more than six months (see page 18) https://themoneycharity.org.uk 4.
(Sources: Reuters, The Guardian, Office for Budget Responsibility (OBR), Bank of England, The Resolution Foundation, National Institute of Economic and Social Research (NIESR), House of Commons Library)
Statistics Source: http//www.themoneycharity.org.uk
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