Strength Against Shocks: Low-income families and debt
Article
The current economic crisis has cast a sharp light on broad cultural trends across all income groups. Consumer-led aspirations and a national obsession with home-ownership are deepseated cultural developments with both social and economic drivers. But for many families, having access to products and homes means relying heavily on debt.
In the decade to 2008, average household debt in the UK increased substantially - from 93 to 161 per cent of disposable income. The profile of borrowers widened to include lower income groups, which some suggest has led to greater opportunities for social and economic inclusion. But low-income households are the ones that are most vulnerable to debt problems, and ippr's new research illustrates that our reliance on debt - far from creating opportunity - has created vulnerability during this recession.
This report is based on in-depth interviews, an income and expenditure diary and regular telephone conversations over four months which explored patterns of income, spending and borrowing.
Related items
Progressive renewal: The Global Progress Action Summit
A quarter of the way through this century, change is in the air. Everyone, everywhere, seemingly all at once, wants out of the status quo.Insurgent government: How mainstream parties can fight off populism and rebuild trust in politics
Across the western world it feels like a sea change is occurring in our politics. At the heart of this is a simple fact: large numbers of people increasingly feel that mainstream politics is failing to deliver for them.The sixth carbon budget: The first plan without consensus
For decades, UK climate action was cross-party, and consensus meant policy looked different to politically competitive issues like tax.