One in five borrowing to pay for essentials

The figures from government body the Money and Pensions Service revealed 23% of people relied on credit or money from family and friends to buy food for the last three months, with the same number doing so for electricity and gas. Of these, around half – 43% for food and 53% for utilities – said they’d never had to do this before.  

Similar numbers said they’re relying on borrowing to meet the cost of their rent or mortgage and healthcare costs like prescriptions and dental treatment, with just over a quarter borrowing to pay these bills and more than half doing so for the first time.  

Alongside this, its research highlighted that 21% of people think they’ll need credit to get through the next three months, with four percent saying they definitely would. Among the remainder, seven percent said it was “very likely” and 10% felt it was “quite likely”.  

An additional 15% said they couldn’t rule it out, meaning up to 36% of UK adults could soon be relying on credit to make ends meet.  

In response, the Money and Pensions Service has launched a new campaign to reach people who are struggling with cost-of-living pressures through the form of the MoneyHelper Cost of Living Campaign. Running alongside the government’s Help for Households, it will include billboards and social media content designed to raise awareness of the help and guidance available.  

Responding to this, the Money and Pensions Service’s chief executive Caroline Siarkiewicz said: “Relying on credit or the generosity of family and friends to put food on the table, heat your home and keep a roof over your head can be a constant source of stress. For millions of UK households, it’s also a daily reality.  

“The MoneyHelper Cost of Living Campaign aims to reach everyone who’s worrying about money, so we can show them that free, independent help is available whenever they need it. 

“If you’re already struggling, or you’re worried things are heading that way, it can feel like there’s no way forward. However, the first step to solving money problems is knowing where to turn.  

“You can turn to us, free, in confidence and at any time, so I’d urge you to contact us for money guidance as soon as you think you need it.”