StepChange responds to Bank of England Money and Credit statistics
1 July 2024
New figures from the Bank of England show net consumer credit borrowing rose sharply in May 2024 to £1.5 billion, up from £0.8 billion in April.
This was driven by net borrowing on credit cards rising from £0.2bn to £0.8bn and borrowing on other forms of credit such as personal loans and car finance rose from £0.6bn to £0.9bn in the same period.
Commenting on the statistics, StepChange Head of Communications Simon Trevethick said:
“While the increase in consumer credit borrowing will to an extent reflect an upturn in consumer confidence, we know that millions across the country are struggling to make ends meet, many of whom will be turning to credit out of necessity, not choice. Our own research has found that 8.6 million people – that’s one in six of us - has recently borrowed to keep up with essentials.
“With inflated living costs set to weigh heavily on millions of people’s finances for the foreseeable future, it’s vital the next government has a robust plan to help struggling households become more financially resilient. Actions such as rolling out social tariffs for utilities, urgently addressing drivers of destitution in the benefit system and making the Household Support Fund permanent can help to ensure people on low incomes are better equipped to withstand financial shocks.”
Notes to Editors
- The Bank of England’s Money and Credit statistics can be found here.