A Third Of Families Are Just One Paycheck Away From Homelessness
It used to be said that we could all be just three month’s salary away from losing our homes – but that idea has been drastically upgraded.
According to research by Shelter, more than one in three families in England are only a monthly pay packet away from losing their homes because many households have almost no savings. The housing charity found that 37% of working families would be unable to cover their housing costs for more than a month if one partner lost their job.
Speaking in today’s Guardian, Campbell Robb, the chief executive of Shelter, said: “These figures are a stark reminder that sky-high housing costs are leaving millions of working families stretched to breaking point and barely scraping by from one paycheck to the next.”
“Any one of us could hit a bump along life’s road, and at Shelter, we speak to parents every day who, after losing their job or seeing their hours cut, are terrified of losing the roof over their children’s heads too.”
The findings mirror government figures, which show that there are 16.5 million in the UK with no savings. The charity is calling for an improved welfare safety net to prevent families where someone loses a job from “hurtling towards homelessness”.
Losing a job and relationship breakdown are among the chief reasons for households falling into serious debt.
The so-called ‘working poor’ – those earning a regular salary, but living from one paycheck to the next with no savings to speak of – is a widespread feature in English-speaking western economies such as the UK, Canada, the US and Australia.
Research from the USA indicates that 63% of Americans have no emergency savings for necessities such as a $1,000 (£770) hospital treatment or a $500 car repair. Most turn to credit cards when financial disaster looms. According to the US Federal Reserve board, 47% of Americans would have trouble finding $400 for an emergency expense.
TV finance pundit Martin Lewis, of MoneySavingExpert.com, says in his book The Money Diet: “In truth we should all have three to six months’ income saved away, so that we’re ready for any emergency”. But he acknowledges that this is easier said than done – many savings accounts pay virtually no interest after the Bank of England cut the base rate to 0.25% last week.
Anyone worried about losing their home can contact Shelter for free expert advice. Visit www.shelter.org.uk/advice or call the Shelter helpline on 0808-800 4444.
