Mortgage holders face near £150 a month shortfall

In figures coming from the charity’s cost-of-living dashboard, households face a £147 a month shortfall when looking to cover their essential bills. For comparison, in 2019 they had a £61 surplus to cover these costs.  

And some groups coming to Citizens Advice for debt advice are shouldering greater negative budgets than others, with people of colour – £276 – single parents – £182 – and disabled people – £164 – all experiencing bigger shortfalls than others. 

Citizens Advice is also helping record numbers of private renters with homelessness and with Section 21 “no fault” evictions. 

As such the charity is calling for a small, targeted fund for mortgage holders on low incomes who are at real risk of losing their home. Additionally, it’s urging the government to bring forward the long-awaited Renters Reform Bill and give renters the protection and improved rights they desperately need. 

Dame Clare Moriarty, chief executive of Citizens Advice, said: “People who can’t cover their essential bills risk being sucked into a spiral of debt.

“Our latest analysis is a sobering reminder that, despite cutting their spending back to the absolute minimum, too many people are simply living on empty. The government must look at ways of preventing mortgage holders and renters from falling further into the abyss.”