The average household debt is now 31 percent above its peak before the financial crisis, according to figures from the Trade Union Congress (TUC).
The trade union’s figures, based on data from the Office for National Statistics and the Bank of England, show that household debt rose sharply over 2019, with unsecured debt reaching record highs:
The TUC attributed the debt levels to government austerity, the rise of insecure work and years of wage stagnation.
It argued real wages are on average lower today than before the financial crisis, pushing many working households towards borrowing.
TUC general secretary Frances O’Grady said: “It’s not about keeping up with the Joneses. This is hard-up families borrowing just to scrape by. It’s for paying the rent, heating the home and feeding the kids.
“The reason we’re seeing this is bad management of the economy. Wages are still worth less than a decade ago. Too many people have insecure jobs with uncertain hours. And vital support like working tax credits has been cut.
“No more excuses – the government must put together an urgent plan to improve living standards and to help families struggling with dangerous levels of debt.”
UK unsecured borrowing in total and per household, 1989-2019
Annual quarter |
Unsecured borrowing £bns |
Disposable income (rolling annual sum) £bns |
Debt to income percentage |
Number of households |
Debt per household £ |
1989 Q3 |
83 |
373 |
22.3 |
22,316 |
3729 |
1990 Q3 |
91 |
418 |
21.9 |
22,544 |
4053 |
1991 Q3 |
95 |
461 |
20.7 |
22,863 |
4170 |
1992 Q3 |
92 |
495 |
18.6 |
23,008 |
4007 |
1993 Q3 |
89 |
524 |
17.0 |
23,140 |
3845 |
1994 Q3 |
94 |
549 |
17.0 |
23,268 |
4020 |
1995 Q3 |
101 |
576 |
17.5 |
23,431 |
4297 |
1996 Q3 |
108 |
616 |
17.5 |
23,583 |
4564 |
1997 Q3 |
117 |
643 |
18.1 |
23,728 |
4915 |
1998 Q3 |
130 |
662 |
19.7 |
23,882 |
5457 |
1999 Q3 |
143 |
692 |
20.7 |
24,067 |
5961 |
2000 Q3 |
158 |
740 |
21.3 |
24,281 |
6498 |
2001 Q3 |
173 |
776 |
22.3 |
24,486 |
7066 |
2002 Q3 |
200 |
802 |
24.9 |
24,609 |
8121 |
2003 Q3 |
208 |
828 |
25.1 |
24,729 |
8401 |
2004 Q3 |
230 |
865 |
26.5 |
24,856 |
9235 |
2005 Q3 |
245 |
904 |
27.1 |
25,060 |
9778 |
2006 Q3 |
258 |
950 |
27.1 |
25,235 |
10,207 |
2007 Q3 |
270 |
1,002 |
27.0 |
25,420 |
10,634 |
2008 Q3 |
286 |
1,044 |
27.3 |
25,632 |
11,141 |
2009 Q3 |
277 |
1,067 |
25.9 |
25,824 |
10,723 |
2010 Q3 |
280 |
1,096 |
25.5 |
26,038 |
10,742 |
2011 Q3 |
275 |
1,113 |
24.7 |
26,313 |
10,463 |
2012 Q3 |
271 |
1,157 |
23.4 |
26,539 |
10,206 |
2013 Q3 |
277 |
1,198 |
23.1 |
26,723 |
10,354 |
2014 Q3 |
281 |
1,245 |
22.6 |
26,947 |
10,425 |
2015 Q3 |
301 |
1,308 |
23.0 |
27,166 |
11,077 |
2016 Q3 |
331 |
1,341 |
24.6 |
27,398 |
12,065 |
2017 Q3 |
362 |
1,368 |
26.4 |
27,594 |
13,102 |
2018 Q3 |
392 |
1,436 |
27.3 |
27,793 |
14,107 |
2019 Q3 |
407 |
1,482 |
27.5 |
27,985 |
14,540 |