1.4 million Britons Were Strapped Before Payday the Previous Year
A PUBLIC WARNING has been issued in advance of the conclusion of the government’s furlough program. According to a recent Citizens Advice study, 1.4 million people ran out of money before payday last year.
Britons are being urged to become more mindful of their financial outgoings before the furlough and Universal Credit boost expires.
Despite the presence of the furlough program and Universal Credit boost, a YouGov study commissioned by Citizens Advice Scotland (CAS) discovered that around 1.4 million individuals in Scotland failed to pay critical obligations.
According to the charity, 32% of Scots ran out of money either “always,” “most of the time,” or “sometimes.” Using the most recent Scottish population data, CAS projects that 1.4 million individuals will be cash-strapped by 2020.
Pending Actions By Government Could See the Figure-Rise
This number is anticipated to grow in the coming months due to upcoming UK Government initiatives that will affect the personal finances of millions of people all over the country.
Between May 20 and May 25, 2021, CAS surveyed 1032 Scots of adult age, months before the reforms to furlough and Universal Credit.
Chancellor Rishi Sunak said earlier this year that Universal Credit payments would be reduced by £20 per week, thus terminating the government’s financial assistance during the epidemic. This equates to £1040 per year for families, and benefit payments are scheduled to be gradually cut by October 6, 2021.
Furlough Scheme To Conclude Towards The End Of September
Furthermore, as part of Mr Sunak’s Budget presentation, the government announced that its furlough program would terminate at the end of September.
Employers used furlough extensively in the early days of the COVID-19 epidemic, with the government supplementing workers’ pay while business operations were affected.
Moreover, the energy price ceiling is expected to climb for around 15 million households throughout the UK by October 1. Britons paying by direct debit on default rates will see a £139 rise from £1,138 to £1277.
In addition, prepayment subscribers would experience a £153 rise in their energy costs, from £1,156 to £1309.
Cost of Living Moving Up by 3.2 Percent
According to official Consumer Prices Index data, the cost of living increased by 3.2 percent in the year to August.
This is the single most significant increase in costs since records began in 1997, emphasising the expenses families must pay during this period.
The Chairperson of Citizens Advice Scotland, Mr Rory Mair CBE, outlined how concerning these statistics should be in evaluating the lack of support Britons have going forward into the year.
He says that these are staggering figures that demonstrate the extent of financial insecurity across the country. The truth is that most people receive unexpected bills or a sudden drop in income away from being in real trouble.
He goes on to say that in the coming weeks, millions of people may see a drop in income and higher bills, with furlough ending, Universal Credit being reduced by £20 per week, and energy bills rising.
However, the financial expert also promoted Citizens Advice’s services, which offer advice to people who want to manage their money better.
He explained that their message to policymakers is to prioritise income and living standards in the economic recovery from Covid. Still, people should also be aware that the Citizens Advice network is available to assist them.
They have created www.moneymap. Scot is an online tool that compiles all your options to increase your income and lower your expenses. The CAB network helped over 171,000 people last year, and their advice adds up.
People worried about managing their finances due to the furlough and the Universal Credit uplift should contact Citizens Advice immediately.
Denzil is an experienced writer and a procurement graduate on a mission to eliminate poor regurgitated content while advocating for top-notch digital content. When he’s not writing, Denzil joins the rest of the world watching the English Premier League games.