Financial cliff edge when coronavirus protections end

Citizens Advice has warned that millions of people from across the UK still have reason to fear the looming financial cliff edge when current coronavirus protections end.

More than 13 million people have already been unable to pay, or expect to be unable to pay, at least one bill because of the coronavirus outbreak. Of that figure, almost 11 million have missed or expect to miss a bill that would leave them vulnerable to severe consequences when financial protection end. This can include possible eviction, bailiff enforcement or disconnection.

The charity says that those most at risk of severe consequences include: the 2.6 million private renters who have missed a rent payment already or expect to do so owing to coronavirus; the 7.2 million people who have missed a council tax payment already or expect to do so owing to coronavirus; and the 7.4 million people who have already missed or expect to miss a mobile phone or broadband payment.

Also more likely to have fallen behind on a bill are people in insecure work - either agency workers or those on zero-hours contracts - who are around three times as likely to have missed a bill payment than other workers. Additionally, those under 40 are over 4 times as likely to have fallen behind on a bill than those over 40.

Citizens Advice is calling for urgent government action to extend the protections for those most likely to suffer punitive enforcement.

Dame Gillian Guy, chief executive of Citizens Advice, said: "The government's comprehensive measures have, for now, eased the financial burden for lots of households across the country. But millions still have reason to fear the looming financial cliff edge when these protections end.

"No one should lose their home, or have bailiffs chasing council tax payments, because of debts built up during the pandemic. Just as the lockdown restrictions will need to be eased gradually to prevent a second wave of the virus, we also need a transition out of the financial protections to avoid a new wave of hardship. The government must take strong action to prevent millions going over the financial cliff edge, ensure people are helped out of debt and so support the economic recovery."