Chancellor Rishi Sunak has been urged to use this week’s Spring Statement to help poorer households.
It comes as the cost of living is continuing to rise and energy bills are set to increase sharply from next month, when the price cap goes up.
Debt charity StepChange called on Sunak to increase welfare benefits and offer more help with energy bills.
According to a survey by the charity, one in five people (21%) in the UK believe external financial pressures will drive them into “problem” debt this year.
Of 1,676 adults surveyed by YouGov for StepChange, 42% said they think they will struggle to pay rising energy bills and council tax in the coming months.
Three in 10 (31%) are expecting to struggle to pay for essentials such as a healthy diet and clothing that is appropriate for the weather. And nearly half (47%) anticipate they will use up their savings this year.
A separate report from Nationwide Building Society reveals that spending on utilities and bills last month rose by 15% compared with February 2021.
“As inflation impacts how much money we can spend and where we are spending it, we expect overall spend to outstrip last year, particularly in areas where the rising cost of living is likely to be having a big impact, such as utilities, bills and fuel,” said Mark Nalder, head of payments at Nationwide.
“We do, however, anticipate the need for many households to curb non-essential spending as they do their best to balance family finances.”
