TUC sounds alarm over rising household debt levels

3 Apr 2017 11:32 AM

Commenting on figures published by the ONS on (Friday), which shows that unsecured borrowing is at its highest level (as a share of household income) in 8 years, TUC General Secretary Frances O’Grady recently said:

"Today's figures should set alarm bells ringing.  The last thing our economy needs right now is another consumer debt crisis.

"But with wage growth stalling and prices rising, many households are having to rely on credit cards and loans to get through the month.

"People raiding their piggy banks and borrowing more than they can afford is what helped drive the last financial crash.

“Ministers need to set out a plan for how they will protect living standards as we leave the EU. This must include a more ambitious programme for infrastructure spending to create better-paid jobs across the country. And end the unfair pay restrictions for public sector workers.”

Notes to Editors:

• Unsecured borrowing is defined as household total financial liabilities excluding lending secured on dwellings. In 2016 this rose to 39.6% of household disposable income, the highest since 2008 when it was 41.4%.
• All TUC press releases can be found at tuc.org.uk/media
• TUC Press Office on Twitter: @tucnews

Contacts:

Press Office  T: 020 7467 1248  E: media@tuc.org.uk
Alex Rossiter  T: 020 7467 1285  M: 07887 572130  E: arossiter@tuc.org.uk
Tim Nichols  T: 020 7467 1388  M: 07808 761844  E: tnichols@tuc.org.uk
Elly Gibson (Mon to Thurs) T: 020 7467 1337  M: 07900 910624  E: egibson@tuc.org.uk
Michael Pidgeon  T: 020 7467 1372  M: 07717 531150  E: mpidgeon@tuc.org.uk