Money: Key workers and carers fall into Covid debt trap

Six million people across the UK have reported falling behind on household bills during lockdown, according to new research from Citizens Advice.

The charity warns that many of those struggling may face harsh enforcement measures.

Relatives who care for someone older or younger, vulnerable people who had to shield during the pandemic, and key workers are at least twice as likely to have fallen behind on a household bill during the Covid-19 outbreak, according to a national poll.

The study showed that:

• One in four people who are parents or carers has fallen behind on bills, compared to one in 14 people without caring responsibilities
• One in five in the shielded group are behind, compared to one in 20 of people not shielding or at “increased risk”
• One in five key workers have fallen behind on their bills, compared to one in 14 of non-key workers.

The report also revealed that 20% of people who were struggling financially had to sell possessions to make ends meet.

Citizens Advice fears that many of those now in debt may never escape it. And people who have sought help with debt since March will need, on average, two and a half years to pay back their current priority debts, which include household bills.

Dame Gillian Guy, chief executive of Citizens Advice, said: “Protections put in place by the government, businesses and regulators have staved off the worst consequences of lockdown debt – so far. But with these measures beginning to end, millions will now face the repercussions.

“It is not right that people who have followed government guidance by shielding, stayed at home to care for others, been forced to work less, or lost their jobs altogether should be the ones left facing a financial black hole.”