Juliette, CAP’s Policy and Public Affairs Manager, discusses the challenging financial situation people are facing as we call in a new year.
On New Year’s Eve, my boiler broke just in time to celebrate the new year without central heating or hot water. What a metaphor for the icy reality that millions have been facing in the UK. 2024 was a difficult year for many with incomes from wages, social security or a combination not high enough to pay for the high costs of essentials.
As we go into another year, the realities of people’s finances still look bleak.
Although I am fortunate to be able to afford to call out a boiler engineer, meaning a few days later I was able to put away the hot water bottles and woolly hats, this is not something I take for granted. An issue like a bust boiler or broken car can cause people’s precarious finances to spiral.
30% of UK adults say that they have managed their finances, but they would struggle with unexpected costs.
YouGov polling commissioned by CAP in June 2024
An unexpected cost can become a catalyst pulling someone who was just about coping into debt.
But even without a boiler breaking, many are facing a cold winter. Over 20% of adults in the UK report having a deficit budget. This figure comes from polling of over 2,000 UK adults CAP commissioned YouGov to carry out in June 2024 (which revealed 22% of UK adults report having a deficit budget) and Opinium to carry out in December 2024 (21% UK adults). The fact that the result remained consistent across multiple months, across over 4,000 UK adults and through two different polling providers highlights that we can’t ignore this reality felt by one in every five adults.
It is not uncommon for people to self-disconnect when they are unable to afford the cost of their heating.
29% of UK adults limit their electricity or gas use in the house more often than once a week because of the cost.
(CAP, June 2024 YouGov polling)
Without heating at home, spaces that have opened their doors as part of the ‘Warm Spaces’ initiative have become a welcome refuge. But despite the perceived merriment of the festive period, with libraries, community centres and other public spaces closing for Christmas, for people in financial difficulty, this time of year can be a time of isolation and cold.
Charities, churches and other faith groups have a long history of helping people who are struggling. Stepping up to offer support can provide valuable immediate help. The meals my parents delivered through the foodbank scheme to families on Christmas day as I cooked our Christmas dinner, the Christmas hampers CAP debt centres gifted to clients, the emergency fuel vouchers CAP gave out all offered company, care, and warmth this winter.
But wouldn’t it be great if people could afford to heat their home, were not forced to be reliant on the charity of others for food, and that the care and compassion of volunteers across the UK could be spent on helping people to thrive rather than just survive?
So as we enter a new year, let us not forget the harsh realities that many face, and instead get ready for another year of continuing to work towards a future free from poverty.
