The study, by Elaine Kempson and Steve McKay at Bristol University and Maxine Willetts at the Department for Work and Pensions, surveyed 1647 families in arrears.
They owed an average of £300 in credit card, store card and household bills, plus rent or mortgage arrears.
These families were more likely to be tenants than homeowners and had an income of £7500-£15,000 a year and tended not to have a current account.
They also had three or more children and were headed by a young, unemployed lone parent.
Almost half the households attributed their arrears to redundancy.
Leaving full-time employment meant more than a third of lone parents who had been up to date with payments fell behind.
However, moving into full-time work did not improve their chances of getting out of arrears.
Poverty campaign groups blamed the low level of the minimum wage for failing to help families out of debt.
Alan Thornton, media and campaigns officer at Church Action on Poverty, said: “The minimum wage isn’t a living one.
“The government must do a scientific analysis of people’s basic needs and set a living wage by it.”
Source
Housing Today
No comments yet