Autumn Budget: CAP urges government support to tackle poverty
As households face a winter of desperate trade-offs between food, heat, and debt, CAP is emphasising that the Autumn Budget presents a key moment for the Government to make choices that would reduce poverty, pressing the Chancellor to use the budget to tackle the core ‘drivers of poverty’. These include committing to ensuring liveable incomes, abolishing the five-week Universal Credit wait, and removing the two-child limit.
With 9.5 million UK adults unable to afford life’s essentials, and 9.2 million grappling with unmanageable debt, we are witnessing a profound household debt crisis that demands urgent government intervention.
Stewart McCulloch, Chief Executive Officer, CAP
New insights from CAP highlight a concerning picture of soaring debt and income deficits, with many families unable to afford the essentials, facing impossible choices this winter.
This includes new polling where CAP is warning that over 9 million* adults are currently struggling with debt they cannot repay. A similar number do not have enough income to cover their essential costs.
9.5 million, 18% of UK adults
Report having a deficit budget where their income doesn’t cover the costs of their essentials like heating and electricity
27% of young families are struggling
27% of parents with children under 18 are struggling to repay debt, compared to 14% of adults without children
Stewart McCulloch continued: “Families in poverty across the UK need bold action from the Government in the November budget and CAP has a clear roadmap on how they can support those in the most vulnerable situations. It’s not an easy situation but there are steps they can take to turn the tide on this household debt crisis.
“Beyond simply managing this ‘household debt crisis’, we are calling for a cross-departmental strategy focused on critical reforms – from ensuring liveable incomes and accessible public services, to boosting financial resilience and tackling systemic inequality. Alongside this we are strongly urging an immediate push for funding to be better targeted towards the provision of face to face debt advice for the most vulnerable.
“It’s time to build a future where no one is trapped in a deficit budget, and every individual has the dignity of covering their basic needs.”
9.2 million struggling with debt
Around 9.2 million, 17% of UK adults, report having debt that they are struggling to repay.
36% have skipped a meal
30% of those in debt have gone without electricity or gas in the past year, and over a third (36%) have skipped a meal at least once a week because of financial challenges.
Key recommendations include:
Income security: Ensuring wages and social security benefits cover life’s essentials. CAP would like to see the National Minimum Wage rise in line with the true cost of living, as well as the provision of an upfront childcare grant to support individuals moving into work, removing a critical barrier to employment.
Universal credit: Abolishing the five-week wait for Universal Credit, a policy that currently forces thousands into debt and destitution.
Building financial resilience: To help people navigate financial challenges, CAP recommends broadening eligibility for the ‘Help to Save’ scheme, as well as boosting financial education initiatives, such as CAP’s money coaching.
Addressing inequality: Tackling policies that disproportionately impact vulnerable groups. This includes the urgent removal of the two-child limit for benefits, and ensuring disability benefits genuinely cover the additional costs faced by those living with disabilities.
* Polling commissioned by CAP and conducted by Opinium. Total sample size was 2000 UK adults. Fieldwork was undertaken on 29th August 2025 — 2nd September 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). Population figures have been calculated using Opinium’s UK population estimates of 54,196,443 UK adults.
