Abacus Daily Debt News

Low-income families ‘need help’ to avoid debt problems

Action needs to be taken to ensure low-income households are provided for in the recession.

That is the suggestion of head of policy and campaigns at Family Action Rhian Benyon, who called for the government to ensure such families are protected - particularly as the rise in fuel bills caused by the recent cold snap will be adding to pressure.

Increased benefits and tax credits are required to help avoid debt problems, she said, warning: "Low incomes mean that many will not be able to access mainstream credit and lending facilities, forcing many to seek loans from higher-cost home credit companies."

Earlier this week, governor of the Bank of England Mervyn King noted that the next couple of years are likely to see the patience of British households "sorely tried".

Inflation will pick up "markedly" over the first six months of 2010, he predicted, while salary freezes are to be expected.

By Andy Mackay