Tenants hit by welfare reforms see a rise in debt
- 10 Mar
In the last eighteen months household debt amongst 70 households affected by welfare reforms has risen by 55%.
In the sixth report in a major study of northern households affected by welfare reforms, Real Life Reform, the average debt per household has increased by 55% from £2,288 to £3,554. Average weekly debt repayments have more than doubled in the same period, reports Inside Housing.
The study is being produced by seven social landlords along with the Northern Housing Consortium and the University of York.
The study showed a drop in the percentage of households surveyed in debt, from 74.3% in October to 64.2%. However, the report said debt relief orders - which allow debts to be written off - had accounted for a third of the reduction in debts, while discretionary housing payments had allowed 12% of debts to be reduced.
Andy Williams, chair of the Real Life Reform steering group and director of neighbourhood services at Liverpool Housing Trust (LHT), said: "It is clear that the challenge of keeping their heads above water remains extremely difficult for many."
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