Many local people struggle with not enough to live on – it’s time for change.
7% of UK adults couldn’t pay all their bills and living costs without borrowing money 11 million people are living on a deficit budget
We’ve all felt the effects of recent rising inflation, but those in existing financial hardship have been affected the most. As a free debt charity, providing support in areas like Suffolk Coastal, we at Christians Against Poverty (CAP) have seen how devastating the combination of increased inflation and low wages have been for our clients.
Our latest report reveals that CAP clients have an average shortfall of £273 a month. These are what we refer to as deficit budgets. This means that despite having already cut back to the bare minimum, they would still need a further £273 a month just to pay for basic essentials such as food, energy and clothing.
This isn’t just affecting our CAP clients. In our report, we are also launching new polling insights from YouGov which reveal that over 11 million people in and across the UK are facing a deficit budget. For them, incomes simply haven’t kept up with the soaring cost of living over the last few years.
The devastating effect of rising costs on low incomes
The impact of inflation on essential goods has been extremely harsh on low-income households, leading to levels of inequality not seen since the 1920s. Clients are in despair – being unable to afford food, or face the humiliation of sitting in cold and dark homes because they can’t pay for utilities. Increasing their income is not always straightforward – they may be caring for a loved one, perhaps they’re unwell and therefore unable to work, or there may not even be enough job opportunities available to them. These are not isolated incidents but a daily reality for many people in our community.
Churches stepping in to help
In many areas across the country statutory services are up to capacity, and some community agencies
have had to reduce their support due to funding cuts, often leaving local churches and church-based
services to step in and help. At our debt centre here in Suffolk, our Debt Coaches, Debt First Responders
and befrienders visit people in their homes, offering a lifeline to those in poverty. Our teams help clients
navigate their complex financial situations. Whether it’s families, working individuals, or pensioners – many
have depleted their savings and now rely on food banks or charity from friends and relatives to survive.
A broken system that needs fixing
Having a deficit budget and not being able to afford the basics is a stark indicator of a broken system, and the situation demands immediate action from policy-makers, creditors, charities, and individuals who all contribute to effecting positive change. The local churches who partner with CAP have helped thousands of people out of debt and improve their financial situations, so we know that practical, face to face support makes a huge difference, playing a vital role in helping local communities to thrive.
We are confident that, together, we can tackle the root causes of poverty and low incomes but we need your support. Find out more and join the fight against poverty at: capuk.org/campaign.