90,000 children face bullying and stress over family debt
More than 90,000 children in the North East are living in 55,000 families trapped in problem debt, new research by The Children’s Society reveals.
It means that almost one in five families with children in the region have been failing to keep up with household bills and loan repayments in the past year.
In some cases, children are going without basics such as food, clothing or heating, as well as suffering worry, anxiety and bullying.
The survey of 2,000 adults, carried out by Opinium, found that families in problem debt over the last year are juggling an average of four different types of debt. Children in low-income families with multiple debts are at far higher risk of experiencing mental health problems than those in families who owe money to a single type of creditor.
The most common source of problem debt is arrears on energy bills, followed by loans from friends and family, bank loans, and council tax.
While the size of family debt varies, overall almost one third of parents who have been in problem debt in the last year currently have arrears of more than £5,000.
While household budgets up and down the country are under strain, families with dependent children face extra pressures as they are more likely to face unexpected bills and are less able to cope with sudden financial shocks, caused by things like redundancy, reductions in working hours or illness.
The Children’s Society is urging the Government to introduce a 12-month ‘breathing space’ scheme to give struggling families a period of protection from additional charges, mounting interest and enforcement action while they seek advice, put their finances in order, and get back on their feet.
Today they are publishing a draft of a parliamentary Bill to make this ‘breathing space’ a reality for hundreds of thousands of families. The Bill is being sponsored by Kelly Tolhurst MP and will be debated by MPs in the New Year.
Rob Jackson, North East Area Director at The Children’s Society, said: “Again and again we have raised the urgent problem of families who are trapped by debt, and whose children often pay the price with their mental and physical health.
“With unfair and unsustainable repayment plans, hidden charges, soaring interest, visits from intimidating bailiffs and the fear of eviction, the odds are stacked against parents who are desperate to find a way out of their debt. Meanwhile mums and dads are being forced to make impossible decisions between feeding and clothing their children, and paying the bills.
“It is now absolutely clear that this problem is not going away unless the Government takes action to give families the breathing space they need to get their finances back on track. Acting now could have a hugely beneficial impact, not just on family finances in the short term but on the futures of some of the country’s most vulnerable children.”
Table: Estimated number of families and children living in problem debt - North East
Local authority area
Number of families in problem debt
Number of children in problem debt
Proportion of families with children in arrears
Darlington
2,200
3,700
N/A
Durham
12,200
20,400
N/A
Hartlepool
2,200
3,700
N/A
Middlesbrough
2,200
3,700
N/A
Northumberland
6,100
10,200
N/A
Redcar and Cleveland
2,300
3,900
N/A
Stockton-on-Tees
4,500
7,500
N/A
Gateshead
4,300
7,200
N/A
Newcastle upon Tyne
5,900
10,000
N/A
North Tyneside
3,900
6,600
N/A
South Tyneside
3,100
5,300
N/A
Sunderland
6,400
10,800
N/A
North East TOTAL
55,300
92,900
17%
England and Wales
1,397,500
2,436,500
20%