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Alyn Smith MP Sounds Alarm Over Household Debt Risk


Categories: Constituency, Inequality, UK Government (Westminster)

One In Four Risk Christmas Debt; Workers Face £10,0000 Living Standards Gap

Stirling MP Alyn Smith has urged further action on the economy from the UK Government, as two consecutive reports reveal the UK’s dire economic situation.

A recent report by the the Money and Pensions Service highlights over 14 million people – one in four – risk falling into debt through the use of credit cards or pawn shops this Christmas. The average total debt per household in the UK at the end of September 2023 is already at £65,724 – up £481 in a year.

This follows a report by the Resolution Foundation and London School of Economics calling for an urgent rethink of Westminster’s economic strategy, after analysis showed British workers are missing out on over £10,000 a year – with UK living standards falling behind other G7 nations, as well as Australia and the Netherlands.

Mr Smith has reiterated SNP calls to introduce a £400 energy bill rebate and a mortgage interest tax relief, as interim measures to help ease the cost of living crisis on households.

Alyn Smith MP said:

‘The Autumn Statement was an opportunity to support households across Stirling and Scotland this festive season, when so many face rising energy costs and debt – and the UK Chancellor chose not to take it.

‘The Scottish Government continues to ensure money stays in people’s pockets this winter by freezing council tax, and through the Scottish Child Payment and Best Start grants. This is on top of protecting Scottish households from Westminster’s cruel bedroom tax and housing benefit cap – two things we shouldn’t have to do.

‘The reality is that the UK economy is trapped in a vicious cycle of poor growth, stagnant wages and rising poverty as a result of Westminster’s Brexit and austerity cuts – Scotland deserves better than the UK’s dire economic situation. It’s not too late for UK Ministers to wake up, bring back the £400 energy bill rebate, mortgage interest tax relief and a whole range of targeted measures aimed at easing the cost of living crisis for households.’

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