Abacus Daily Debt News

Emergency budget to push poorest towards debt?

The poorest members of society may soon be needing debt management help because of the measures brought in through the emergency Budget, it has been suggested.

Tim Nichols, press officer at Child Poverty Action Group, noted the plans introduced by chancellor George Osborne will hit those on lower incomes the hardest.

He explained the process could be particularly troublesome for larger families.

"The more children that you have in the family, the more the cuts will accumulate as many of the cuts such as the child benefit freeze are attached to children," the industry figure remarked.

Mr Nichols added the £150 rise in the tax credit does not seem to be an efficient method for tackling the problem in the longer term.

Campaign body Save Child Savings recently urged the government to not disband savings plans, while a cluster of charities, service providers and consumer groups have rallied in an attempt to keep the Child Trust Fund.

By Joe Shervin