CHRIST NEWS.COM – Churches in the UK are asking the government for funds to help pay off or cancel debts for low-income families struggling during the Covid-19 pandemic.
Recently, the Baptist Union of Great Britain, Church Action on Poverty, the Church of Scotland, the Methodist Church and the United Reformed Church, published a report.
Which is titled Reset the Debt: A fresh start for families in Britain indebted by Covid-19, the Christian Post reported.
They presently highlight that low-income families with children were particularly affected during this year’s closures.
indebtedness
Because of this, around six million people in the UK, living on a low income or with little or no savings, have fallen into debt as a result of Covid-19.
“These households saw their wages fall more rapidly as their cost of living increased,” the report says.
They also stated that the blockade tended to have the opposite financial effect on higher-income families.
Which on average were able to increase their savings and reduce their credit card and other debt.
Notably, for the poorest fifth of households, median income fell 15%, or about $200 per month, within two months of closing.
crisis loans
So low-income families turn to friends and family, as well as credit cards and overdrafts to pay off at the end of the month.
According to the report, one in five households borrowed to buy food or other basic items in the month of July.
In the aftermath, six million people have fallen behind on rent, council taxes and other household bills due to the coronavirus.
Subsequently, 174,000 tenants have been threatened with eviction during the lockdown.
Denominations
Furthermore, church denominations have proposed that the chancellor and chief finance minister create a Jubilee Fund.
“This would provide grants to pay off and cancel the unavoidable debt, accumulated by households during the lockdown period,” they noted.
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