Families up and down the country are living on a knife edge, missing one pay day would mean they would not be able to pay to remain in their dwellings. Leaving millions of the brink of homelessness.
A missing payment would mean that a shocking 37 per cent of working families would not be able to remain in their homes, unless they manage to borrow or find finance from elsewhere.
The study shows that families simply do not have enough money to save and live hand to mouth each month. In the event of a job loss, it might have a catastrophic impact on the household.
The charity Shelter reported the shocking data. Government figures indicate that there are almost 17 million working age adults with no amount of savings that could be used to cover a gap in employment or an unexpected expense.
Campbell Robb, the chief executive of Shelter, said: “These figures are a stark reminder that sky-high housing costs are leaving millions of working families stretched to breaking point and barely scraping by from one paycheque to the next.
“Any one of us could hit a bump along life’s road, and at Shelter, we speak to parents every day who, after losing their job or seeing their hours cut, are terrified of losing the roof over their children’s heads too.”
This data seems to back-up the claims that a huge section of Britain’s poor are actually from working families, where there may even be two incomes coming into the home. However, the combined wages simply don’t leave enough at the end of the month to save for a rainy day.
With interest rates at a historically low rate of 0.25% there is also little incentive to save any spare money, as the return is so small. This issue is not just found in the UK; there have been various studies in the US which found similar financial issues. One study found that almost two-thirds of American citizens don’t have enough cash to cover necessities such as fixing their car. They are forced to use credit cards or other forms of finance to meet the costs of these unforeseeable monetary demands.
Anyone worried about losing their home can contact Shelter for free expert advice. Visit www.shelter.org.uk/advice or call the Shelter helpline on 0808-800 4444