Skip to main content

Debt News (May 2023)



(May 2023)

Monthly Debt News looks at debts and the causes of debts in Britain from a variety of sources selected for professionals to make the debt sector simple.

This month’s Debt News includes DWP overpayment mistakes - the cost of living bites - homeowners trapped in high interest - opposition leader renegades on student fees - household time bomb - ethnicity and car high car insurance premiums - bite-size stats.

----------------

The DWP is chasing the poorest for millions of pounds of its own mistakes - but one mum fought back (ITV X)

A single mum of two disabled children has fought back against the government after it tried to force her to pay more than £8,000 in benefits debt over its own mistakes.


More here: link

----------------

Belfast food bank adds evening opening as cost-of-living crisis bites.


A food bank in Belfast has described the pressure it faces as a "tidal wave approaching".


More here: Link 

----------------

The people trapped paying 8% interest on their mortgages: 'I lie awake at night and I'm petrified all the time'


Homeowners paying over 8% interest on mortgages they can't switch away from say "relentless" rate rises over the past year have destroyed their mental health and left them living as "hermits". 


More here: Link

----------------

UK opposition Labour leader likely to scrap free university pledge


The leader of Britain's main opposition Labour Party Keir Starmer said on Tuesday he is likely to scrap his pledge to provide free university tuition, blaming economic circumstances for the probable u-turn.


More here: Link

----------------

Households in debt time-bomb, says Citizens Advice


Fears of a "debt time-bomb" have been raised by Citizens Advice, which said growing numbers of households faced a "wild west" when seeking help.

----------------

Household finances: Govt To Issue Blanket Ban On Financial Cold Calls 

The government announced today that all cold calls offering financial products will be banned to protect consumers from scams, writes Bethany Garner.

More here: Link

----------------

Unpacking the controversial issue of an ‘ethnicity penalty’ in car insurance premiums

Insurance Times speaks to industry experts following Citizens Advice revealing that POC are paying more for car insurance than their white counterparts.

More here: here

----------------

Bite size stats:


19.1% Increase in the price of food and drink in the year to March 2023, the fastest rate in over 45 years. (Money Charity)

----------------

70% Percentage of Buy Now Pay Later users reporting that they are paying through this means as a direct result of the cost of living crisis (Money Charity)

----------------

There were 29,017 individual insolvencies in England and  Wales in Q1 2023, 517 fewer than in the previous quarter. The largest increase since the current series began in 2010 was seen between Q2 2020 and Q3 2020. (Bank of England)

----------------

Public sector net borrowing (PSNB ex) in March 2023 was £21.5 billion, £16.3 billion more than in March 2022, and the second-highest March borrowing since monthly records began in 1993 (ONS)

----------------

Comments

Popular posts from this blog

Budgeting on Your Money Matters...with Ripon Ray

24% greater than on the eve of the financial crisis, Britons owe a total of £72.5bn on credit cards with £400m added to balances in November 2018 alone, according to the Bank of England. In such a mountainous backdrop, it's essential that regulators and the central government put financial education on top of the agenda for the well-being of communities who are struggling with money. On Your Money Matters show, I have tackled this exact issue by interviewing Michelle Turpin Cope, Money Trainer. She personally struggled to manage her money once she resigned from her job as a nurse due to stress and depression. She had devoted her life caring for NHS patients. Once her savings ran out, she had to turn to state benefits; otherwise, would have been destitute. The luxury of spending money on a cup of coffee every day, without realising the impact this purchase would have on her finances, was really an issue for her. Once she went on a money mentor training, she was forced to

A debt free path for a mental health sufferer

It’s a well-known fact that individuals who suffer from a hampered mental capacity - be it mental health or learning difficulties - are most likely to be vulnerable in our communities. They are also more likely to be victims of miss-sold products and services by companies, even though organisations that are providing financial products and services have a duty under the Financial Conduct Authority (FCA) to take extra care towards these individuals. This is what the FCA has to say about vulnerable customers: ‘  The vulnerability of the customer, in particular where the firm understands the customer has some form of mental capacity limitation or reasonably suspects this to be so because the customer displays indications of some form of mental capacity limitation  (see  ■  CONC 2.10) But due to a culture of intensive selling to consumers, generated by employers placing and enforcing - often difficult and unrealistic - performance goals which are attached to tempting

The Post War Welfare State is crumbling - who is to blame for it? Asks Ripon Ray

The current welfare state changed in such a way that a true reflection is required as to how this has come about and and its context. Post Second World War, the Attlee government nationalised  the Bank of England, the coal industry, the Central Electricity Generating Board and area electricity boards, Cable & Wireless Ltd, the railways and the local authority gas supply undertakings in England and Scotland. It introduced free education for all by nationalising institutions which were either provided by parishes or philanthropists. The National Health Service was formed and made accessible to everyone regardless of ability to pay.   If you were unemployed there was infrastructure to support you when you could not afford to pay by creating the welfare system as you see today. The expenses of running such a nationalised state was met by cheap loans borrowed from overseas, contributions made by tax payers and companies in times when Britain was losing imperial dominan