Situation set to get “far harder” as inflation soars and energy price hike looms

The Money Advice Trust comments on figures showing inflation rose to 10.1% in July.

The latest UK Consumer Prices Index (CPI) figures, published today by the Office for National Statistics, show that CPI rose to 10.1 percent in the twelve months to July, up from 9.4 percent in June.

With the real value of wages falling at the fastest rate in two decades, the Money Advice Trust is calling for urgent support for people on low incomes most severely affected by rising costs.

More than a third (34 percent) of people contacting the charity’s National Debtline service now have debts that are a direct result of their income being too low to meet their basic needs.

Jane Tully, director of external affairs and partnerships at the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:

“Inflation is already far outstripping the real value of wages, and with energy prices set to skyrocket in autumn, a difficult situation is set to get far harder for millions of people.

“For many, especially people on low incomes, budgets simply can’t stretch any further.  Additional support is needed urgently and before even more people are faced with impossible choices trying to cover essential costs, including food, rent, energy and council tax.

“The government needs to step in now to target support for those most in need.  This should include significantly raising benefits, and additional direct help to households hardest hit so that they can afford energy bills this winter.

“If you are worried about your finances, you should seek free, independent debt advice from a service like National Debtline.”

National Debtline provides free, independent debt advice at www.nationaldebtline.org.

Media enquiries should be directed to David Owen at david.owen@moneyadvicetrust.org or on 07973876569.