Saudi Press

Saudi Arabia and the world
Sunday, Mar 01, 2026

Number of UK households with large debts rises by a third

Number of UK households with large debts rises by a third

Exclusive: Britons struggled even before winter rise in energy prices and benefits cut, research shows

The number of UK households struggling with large debts increased by a third in 2021, even before the winter rise in energy prices and the removal of the £20 uplift in universal credit payments, research suggests.

Analysis of Bank of England research carried out by the Jubilee Debt Campaign found that in September 2021 almost 10% of households reported that loan and interest repayments were a heavy financial burden, a 35% increase on the previous year’s figures.

Households also reported that their average monthly loan repayments reached a record £373 in 2021, up 22% on the year before and the highest figure for at least a decade.


The campaign group’s analysis is based on a survey of more than 6,000 households which was carried out in September 2021. Since then, millions of households have seen energy bills rise and are due to see a further increase next month.

The rise in Ofgem’s price cap in October and the failure of a number of low-cost energy suppliers led to some customers seeing bills increase by hundreds of pounds. On 1 April, an increase in the price cap means the average household will experience a 54% rise in bills.

The temporary £20 a week increase in universal credit introduced at the start of the pandemic was phased out at the end of September.

Surging food and petrol costs have added to the strain on finances since the research was done, and the Jubilee Debt Campaign said the rising cost of living threatened “to push people who are already living on the edge further into debt and poverty”.

The increase in the number of households reporting that their debts were a heavy financial burden followed two years of falls, but the campaign group said it suggested that measures to ease the impact of the pandemic had not helped everyone.

The data for loan repayments comes from analysis of households’ reports of repayments on unsecured debt, so does not include mortgages. It showed that in nominal terms and when inflation was adjusted for, these were running higher than over the past decade.

Citizens Advice said 5 million people had indicated that they would not be able to afford April’s energy price rises.


Separate research carried out last week showed families are already concerned about falling into debt as a result of higher living costs. Citizens Advice said 5 million people had indicated that they would not be able to afford April’s energy price rises, while in a survey by the Money Advice Trust one in five adults said they were likely to borrow or use credit in the next three months to cover essentials.

Dean Burn, 62, is involved with the Jubilee Debt Campaign in Manchester and worked for 41 years before losing his job during the Covid pandemic. He said: “I’m always juggling debts – this month I got my TV licence bill, so I’ve been unable to pay back my housing benefit overpayment.

“I’ve relied on food banks these past 12 months to get by and I can’t afford to even pay for the bus sometimes. I’ve been keeping just one light on in the house at a time and I’m now worried about being able to afford to heat my home.”

Joe Cox, the senior policy officer at Jubilee Debt Campaign, said Rishi Sunak needed to announce a serious plan to address the situation when he delivers the spring statement on Wednesday.

He said: “The worsening debt crisis is toppling households up and down the country … The government should target support to help those struggling with rising bills and mounting arrears and provide a ‘fair debt writedown’ to give people with high levels of debt a fresh start.”

Cox added: “We also need to see significant policies to deliver rising incomes and a decent universal minimum income floor to prevent these chronic debt crises from happening again.”

Citizens Advice said it had analysed the impact of the removal £20 universal credit uplift on clients using its services, and found that in more than a quarter of cases where an adviser referred someone to a food bank that was given as the reason.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Emerging Saudi–Turkish Alignment Draws Attention as Potential Strategic Challenge for Israel
Saudi Arabia Unveils $100 Billion Technology Investment Fund to Accelerate Post-Oil Diversification
US Lawmakers Question White House Consideration of Saudi Nuclear Enrichment Framework
Saudi Arabia Reaffirms Firm Commitment to Two-State Solution in Renewed Diplomatic Push
Saudi Arabia Launches Central Kitchen in Gaza to Deliver 24,000 Meals a Day
Saudi Arabia Announces $346 Million Support Package for Yemen in Renewed Humanitarian Push
Saudi Investors Increase US Equity Exposure Amid Domestic Market Weakness
Saudi Arabia Unveils Major Desert Gas Development in Strategic Shift Toward Diversified Energy Growth
Satellite Images Indicate Increased Aircraft Presence at Saudi Airbase Hosting US Forces
Telephone Diplomacy Sparks Tensions Between Two Key US Allies After Trump Intervention
Asian LPG Prices Surge After Damage Forces Saudi Aramco Export Disruptions
Saudi Arabia Unveils $100 Billion AI Infrastructure Fund to Challenge US and China
Saudi Stocks Close Lower as Tadawul All Share Index Falls 1.28 Percent
Saudi Arabia Launches Smart Mapping System to Enhance Pilgrim Experience at Holy Sites
Cristiano Ronaldo Acquires 25 Percent Stake in Saudi-Owned Spanish Club Almería
U.S.–Saudi Relations Balance Transactional Deal-Making with Expanding Strategic Ambitions
Israel’s President Herzog Signals Cautious Message on Saudi Ties at UAE Iftar in Tel Aviv
United States and Saudi Arabia Strengthen Security Ties with Joint Explosive Ordnance Disposal Exercise
Saudi Arabia Responds to Israel–UAE Moves in Somalia as Regional Rivalries Intensify
Saudi Arabia Showcases Expanding Defense Ambitions at World Defense Show 2026
SECRETARY RUBIO on IRAN: Iran poses a very great threat to the United States, and has for a very long time.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
Nvidia posted better than expected results for the January quarter on Wednesday and forecast current quarter revenue above market estimates.
Saudi Arabia’s Coffee Renaissance Gains Momentum as Investment and Heritage Drive Industry Growth
Saudi Shipping Leader Bahri Expands Fleet as Tanker Rates Approach $200,000 a Day
Saudi Arabia Advances First National Urban Policy Through High-Level Leadership and Institutional Alliances
Major Life Sciences Summits to Spotlight Saudi Arabia’s Rise as Regional Biotech and Pharma Hub
Saudi Arabia Reframes Red Sea and Horn of Africa Strategy Amid Rising Security and Trade Stakes
Saudi Arabia Recalibrates Its Role in Shifting Regional and Global Power Dynamics
Saudi Retail Signals to Global Brands: Localise or Lose Ground in a Rapidly Evolving Market
Saudi Arabia Looks to Human Capital Investment to Unlock Demographic Dividend
Saudi Arabia and Iran Increase Oil Exports Amid Escalating Middle East Tensions
Saudi Data Protection Authority Intensifies Enforcement Under Personal Data Law
Saudi Arabia Raises Oil Output and Exports Amid Contingency Planning Over Iran Tensions
USS Gerald R Ford Arrives in Souda, Crete
Saudi Sovereign Wealth Fund Unit Expands Push Into Global Private Credit
Saudi Arabia Eases Headquarters Rules to Attract More Foreign Firms
Saipem Secures Major Offshore Pipeline Contract in Saudi Arabia
Saudi Arabia’s Targeted Oil Export Cuts to the US Seen as Strategic Signal Amid Global Supply Glut
Nemetschek Arabia Signs Strategic MoU with Saudi Facility Management Association
Gulf Markets Close Mixed as Saudi Shares Slip on Budget Deficit Concerns
Saudi Arabia Posts Largest Quarterly Budget Deficit in Years Amid Weaker Oil Revenues and Higher Spending
U.S. Lawmaker Urges Safeguards on Saudi Civil Nuclear Deal as Trump Administration Advances Agreement
Saudi Arabia and Gulf Allies Rally Behind Kuwait in Escalating Maritime Border Dispute with Iraq
Universal Aviation Secures License to Operate and Manage New General Aviation Terminal in Dammam
Tucker Carlson’s Saudi Arabia Remarks Spark Debate Over Israel Stance
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
×