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.
- 297 people a day were declared insolvent or bankrupt in England and Wales in December 2021 to February 2022. This was equivalent to one person every 4 minutes & 50 seconds.
- In Northern Ireland in February 2022, there were 5.8 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 1,988 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 1,101 per day in the twelve months to January 2022.
- 739 people a day reported they had become redundant in November to January 2022.
- Net lending to individuals and housing associations in the UK grew by £183.5 million a day in January 2022.
- Government debt increased by £204 million a day in the 3 months to February 2022.
- Borrowers paid £123 million a day in interest in January 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:
➢ StepChange report that 40% of their clients found their overall financial situation was made worse by Covid-19. These clients reported significantly lower levels of wellbeing.
➢ Over the past three months, due to the cost of living crisis, the Money Advice Trust say that 12% of UK adults have:
- Sold household or personal items
- Gone without heating, water or electricity
- Gone without food
- Borrowed money from family and friends
➢ StepChange reported that almost one in ten (9%) of their clients cited an increase in the cost of living as one of their main reasons for debt.
➢ Real household disposable income per person is expected to fall by 2.2% in 2022-23, as earnings from work fail to keep pace with soaring inflation (Office for Budget Responsibility). This is the biggest fall in living standards in any single year since OBR records began in 1956-57.
➢ Annual food price inflation was 5.1% in February 2022. Food prices rose by 0.9% between January and February, the largest monthly increase since 2012 (ONS).
➢ Prior to the Russian invasion of Ukraine, inflation was expected to peak at around 7% in April. However, since the invasion began, inflation has been forecast to peak at 9.5% in October, coinciding with another expected large increase in the default household energy price cap (House of Commons Library).
Statistics Source: http//www.themoneycharity.org.uk
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