Abacus Daily Debt News

Debt problems facing Jobseeker’s Allowance claimants

Jobseeker's Allowance claimants have debts averaging in excess of £15,000 and owe money to five different creditors.

This is according to new research from the Consumer Credit Counselling Service (CCCS), which has revealed one-in-eight people who got in touch with the charity during the opening six months of 2010 were claiming unemployment benefits.

Over a fifth (22.4 per cent) of those who contacted the CCCS said their unemployment status was a reason for rising debts and chairman of the body Malcolm Hurlston said being out of work "can devastate the finances of any family".

"Thousands of people claiming Jobseeker's Allowance are ensnared by unsecured debt and their needs demand specific study," he remarked, adding the government needs to take steps to make sure any cuts to welfare do not result in "huge numbers of people" being left with uncontrollable debts.

Citizens Advice recently warned the high price of school uniforms may be adding to debt problems, arguing education establishments are ignoring government advice to try and keep the cost of the items down.

By James Francis