Call for freeze on personal debt payments in response to Covid-19
Nearly 80 civil society leaders and academics are calling urgently for a freeze on personal debt payments and to write-off existing Council Tax and social security debts.
A group of nearly 80 academics, policy experts and leaders of charities, trade unions and community groups - including Sustain's Right to Food project - have written to Chancellor of the Exchequer Rishi Sunak MP, calling on him to provide an urgent, interest-free freeze on personal debt payments for people affected by the Covid-19 coronavirus outbreak.
The letter also calls for a write-off of existing Council Tax and social security debts to provide extra breathing space for low-income families struggling with rising costs because of the pandemic.
Sarah-Jayne Clifton, Director of Jubilee Debt Campaign, one of the signatories, said:
“Without urgent action to give families more financial breathing space, Covid-19 will drive personal debt levels through the roof. We need the government to act now and freeze payments on debt, Council Tax, rent and utilities for those affected, with no build-up of arrears, alongside a write-off of historic unpayable Council Tax and social security debts.
“Rishi Sunak should be commended for the swift action he has taken to protect workers and their incomes. But the moves have still come too late for many thousands of workers and fall dramatically short of what’s needed for those on low incomes and those unable to work.”
The letter highlights that, despite the significant measures already announced, delays and gaps in the Government’s support package and the major existing weaknesses in Britain’s social safety net mean that millions are already facing a dramatic drop in their incomes because of Covid-19, so they will struggle to put food on the table.
Without additional action by the Government, the Covid-19 pandemic will mean a further large-scale rise in personal debt levels and could push millions more into the growing household debt trap.
The letter signatories also call for more help to be made available to impacted households in respect of Council Tax, rent and utility bills for those who need it, with no build-up of arrears on these accounts, and for the Government to suspend all collection activity on household debts and all enforcement activity by bailiffs, enforcement agents and others.
Published Thursday 2 April 2020
Coronavirus Food Alert: Sustain's work on food resilience in the COVID-19 coronavirus pandemic.We are helping secure food for vulnerable people and supporting local emergency responses.
