Debt in the pandemic

New Bevan Foundation report provides stark warning of rocketing household debt

Thousands of people across Wales were living in problem debt long before the pandemic. The economic impact of Covid-19 has seen the financial position of many Welsh families deteriorate, pushing some into problem debt for the first time and deepening the amount of debt owed by some of those already struggling. Across Wales 130,000 households, 10 per cent of all households, had fallen behind on a bill between January and May 2021. Over the same period 230,000 households, 17 per cent of all households had borrowed money.

The Bevan Foundation’s latest report sets out to explore the impact of the pandemic on debt and to consider what solutions should be taken forward by the Welsh and UK Governments. Amongst the report’s key recommendations are:

• Problem debt has become a greater issue for those who were already at a heightened risk of being in problem debt pre-pandemic.
• Problem debt has not become as significant a problem for the population as a whole as many may have feared at the outbreak of the pandemic.
• We are yet to see the full impact of the pandemic on problem debt and the situation may deteriorate further this autumn.

Given the significant consequences of problem debt and the concerns that the number of people affected could be set to increase over the autumn it is vital to take action. This report argues that the time is right for the Welsh Government to adopt a new approach to personal and household debt with a clearer focus on debt prevention and relief.

Pages: 31 

Format: PDF

Language: English 

Cost: Free

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