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Recession 'adding to the financially-excluded'

By Sarah Engle, Fri 5 Mar 2010 - Published in Banking

A new group of financially-excluded people was created in the recent recession, according to Citizens Advice.

Speaking at the Northern Money Conference 2010 at the Contemporary Urban Centre, Citizens Advice director of policy Teresa Perchard pointed out that water and utility debt have been steadily increased during the last year.

"The recession is causing a new group of consumers who join the financially excluded. Child poverty, pensioner poverty, fuel poverty have all grown almost uncontrollably over the last couple of years," she added.

In addition, the expert claimed that the idea Britain can be free of debt within the next five years is not realistic and suggested the only way to address the increasing prevalence of poverty in the UK is to develop a better policy framework.

Recent figures from Credit Action claimed that total UK personal debt has increased by 0.8 per cent in the last 12 months to reach £1,463 billion.

The group also said that average household debt in the UK stands at £58,040, including mortgages.