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Further growth in unemployment could lead to a sharp rise in insolvency.
Commenting on the 2010 Work and Worklessness Households figures released by the Office for National Statistics (ONS), Joanna Elson OBE, Chief Executive of the Money Advice Trust, said:
“Over the last two years there has been a 27 per cent increase in the number of workless households in the UK. Over the same period advisers at National Debtline, which is run by the Money Advice Trust, have seen the number of calls from unemployed people more than double. There can be no doubt that continuing high levels of unemployment are contributing to the personal debt problems faced by the British public.
“We have grave concerns that households witnessing a fall in income due to unemployment will start to default on debt repayments, and that we may start to see a sharp rise in personal insolvencies. Research undertaken by the University of Wales last year found there were two million ‘iceberg bankruptcies’ in the UK - employed people who could not afford any fall in income without defaulting on debt repayments.
“We are working closely with advice agencies, government and financial services providers to ensure that free independent debt advice is available, effective and rehabilitative.”
Calls to National Debtline from unemployed people increased more than double in the last two years. There were 23,886 calls (17.62% of all calls) from unemployed people this year January – July. In 2008 there were 10,692 calls (10.85% of all calls) from unemployed people for the same period.
For more information on insolvency statistics quoted view the full press release on the Money Advice Trust website.
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Commenting on the 2010 Work and Worklessness Households figures released by the Office for National Statistics (ONS), Joanna Elson OBE, Chief Executive of the Money Advice Trust, said:
“Over the last two years there has been a 27 per cent increase in the number of workless households in the UK. Over the same period advisers at National Debtline, which is run by the Money Advice Trust, have seen the number of calls from unemployed people more than double. There can be no doubt that continuing high levels of unemployment are contributing to the personal debt problems faced by the British public.
“We have grave concerns that households witnessing a fall in income due to unemployment will start to default on debt repayments, and that we may start to see a sharp rise in personal insolvencies. Research undertaken by the University of Wales last year found there were two million ‘iceberg bankruptcies’ in the UK - employed people who could not afford any fall in income without defaulting on debt repayments.
“We are working closely with advice agencies, government and financial services providers to ensure that free independent debt advice is available, effective and rehabilitative.”
Calls to National Debtline from unemployed people increased more than double in the last two years. There were 23,886 calls (17.62% of all calls) from unemployed people this year January – July. In 2008 there were 10,692 calls (10.85% of all calls) from unemployed people for the same period.
For more information on insolvency statistics quoted view the full press release on the Money Advice Trust website.
More...
