Christian report reveals extent of poverty in the UK

A groundbreaking report from a major Christian organisation is claiming that millions of Britons have ‘shockingly low incomes’ which leave them struggling to find enough money for food.

CAP (Christians Against Poverty)’s 2024 Client Report reveals that millions are now at breaking point – without even the basics reckoned as essential, and fearing the arrival of debt collectors at any moment.

A YouGov poll, which accompanies the report, shows that 11.8 million (22%) of UK adults say they currently have a deficit budget – when a person’s income doesn’t cover the cost of their core essentials, such as food, energy bills and rent. On average, that deficit is £273 a month.

This means that when CAP’s debt coaches go into clients’ homes they often find people living in cold properties and with empty fridges. Clients describe sitting in the dark with the lights off and curtains closed, hiding in terror because they’re afraid of bailiffs knocking at their door demanding money that they don’t have.

The report shows that almost half (47%) of CAP’s clients have deficit budgets. This is even after an expert debt advisor has supported them to review their finances and worked through suggestions to maximise their income and cut out non-essentials. Common comments from those in this position are: ‘I can’t do this anymore,’ and ‘It’s like being on a never-ending treadmill.’

CAP’s CEO, Stewart McCulloch, said: ‘This new report shows the brutal reality of living with a deficit budget. Our expert debt advisors, alongside local churches we partner with, are continuing to help thousands of people across the UK to become debt-free.

‘But it’s frustrating for our teams when they have the tools to help someone out of debt but his or her income is so shockingly low that even when the burden of debt is removed they still can’t afford life’s essentials. Therefore, and despite all the hard work of getting debt-free, life remains a constant struggle.’

One former CAP client who is now debt-free is Simon Peter Moss, 70, from Sunderland, who explained to Evangelicals Now how he got into debt in the first place. It was, he said, a long-drawn-out process. He had a good job in London with British Airways, but he always lived beyond his means. The problem was compounded by the death of his wife, who managed their money. Eventually he ‘maxed out’ his credit cards and amassed a huge debt, including rent arrears, and he was threatened with eviction.

At that point he was not remotely coping and attempted suicide. He failed, he says, because ‘God watched over me’. Put in touch with CAP he was given a fast-track solution due to the eviction notice. This included agreeing a comprehensive budget and eventually he became debt-free, through a Debt Recovery Order, which itemised £17,000 of debts owed to over 30 creditors.

Moss is now a Christian, but he had no interest in Christianity until after he was debt-free. Then he went on a CAP Discovery Break, a free all-inclusive weekend holiday in the Lake District. One evening seminar covered worry and anxiety, which he attended as his son was then in prison in Southampton. The leader prayed for him, and he immediately felt God’s presence ‘like a peaceful hug’ in his heart. He then publicly committed his life to Christ in front of 74 people at the event.

But Moss is concerned he may yet end up back in debt this winter, as he is just above the threshold to receive the winter fuel allowance. So he is now being as disciplined as possible, using the CAP Money Course, which advises on how best to set money aside for the unexpected bills that crop up.

Evangelicals Now asked CAP report author Juliette Flach to comment on the broader issues surrounding poverty in the UK. Asked why it seems to have worsened so severely over the past few years, with so many people now in so much debt, she blamed the Covid 19 pandemic and the cost-of-living crisis for dragging more and more people into poverty.

But the biggest cause of debt, she believes, is that social security payments and wages have not kept up with the cost of essentials, which have shot up and remain high: ‘Many people have already used up all their savings and they are going to continue to spiral into further debt unless urgent, targeted support is provided. We are campaigning for an essentials guarantee to be put in place, because we want to see everyone be able to have access to the basics; food, a safe and warm home, and weather-appropriate clothing.’

More specifically, she blamed rocketing rents and energy bills for the current crisis, together with food costs, low-income levels, medical costs, and other essential bills. All this leaves many households just one unexpected expense away from falling into financial difficulty.

She added: ‘It’s worrying that energy prices are expected to rise by ten per cent in October when, according to CAP’s research, almost half of the UK population are already limiting their electricity and gas because of the high costs. Local churches are doing an amazing job of offering warm spaces, drinks and food to those in desperate need, but the government should be ensuring everyone can be warm in their home this winter.’

At the macro-level, she was asked how the nation should get people out of debt, and prevent them falling back into it. She answered: ‘The government needs to provide short-term targeted support to those going without the essentials and, in the long term, address the causes of poverty, by making sure everyone’s income from wages and social security covers the basic essentials and doesn’t force them into borrowing.

‘9% of UK adults are using credit to pay for monthly bills. They shouldn’t have to do that, none of us should ever have to be faced with a situation where we have to borrow money to heat our homes, pay our rent or feed our kids.’

Flach is also convinced that the new Labour government needs to understand the reality of poverty and see the daily struggle millions of families across the UK face right now as winter looms. It also urgently needs to review the rate of social security and wages to ensure that people receive a minimum amount that covers the core essentials.

She said: ‘Charities and churches are currently stepping in to help people struggling. So, as long-term policies are put in place, there also needs to be more support for churches and charities who are running initiatives that help people in poverty, such as social supermarkets, warm spaces, and offering foodbank vouchers.’