Citizens Advice research* shows many people’s finances are increasingly vulnerable to changes in income and unexpected expenses.
Their incomes are unpredictable and they don’t have the resources to fall back on when things go wrong.
Not surprisingly, they are more likely than others to depend on overdrafts and high-cost credit to get by.
Every day Citizens Advice Reigate & Banstead, in common with offices across the CA network, sees clients whose problems are caused or made worse by financial insecurity.
The government must recognise the harm caused to families and impact on society.
They could and should immediately take action to:
1 Make sure credit products don’t push people into unmanageable debt.
2 Provide alternative borrowing options for those who can’t borrow affordably from commercial providers.
3 Help people build a savings buffer.
There are no easy answers but ministers and the financial service industry can no longer ignore a problem they have the responsibility and the means to improve.
* Walking on thin ice: The cost of financial insecurity, Citizens Advice, 22/02/18