Study finds 51% of people left penniless after weekly bills

More than half of households being tracked in a six-part welfare study were left without any money after paying their weekly bills.

The study by Real Life Reform, which looks at the impact of the government’s welfare reforms in the North of England, found that 51 per cent of people have no money left after paying their bills for the week. This figure has risen by more than 10 per cent since July, from 39 per cent, demonstrating the increasing financial struggle faced by many families.

Lisa Pickard, chief executive of Leeds and Yorkshire Housing Association said: ‘With nothing left each week, how are households expected to not only cope but to find work or increase their hours?’

These figures are in spite of the fact the households are cutting back on basic weekly spending. It also found that one in three households are spending less than £20 a week on food. The study saw changes in shopping habits, with participants cutting out meat, fish, and fresh fruit and vegetables and buying cheaper, low quality food.

Some areas have seen neighbours cooking extra food and buying groceries for struggling families who live nearby. The report even found one group of mums who had split the cost of Sunday lunch and cooked in each other’s houses to make sure their children got to eat ‘some decent food’.

The research also found people are growing ever more concerned that the welfare reforms will affect their health, children’s education, and communities and are spending 16 per cent more on gas and electricity. The number of households spending more than £40 pounds a week on debt payments has doubled since July.

Finally, people are becoming increasingly frustrated by the lack of support given to jobseekers who are applying for jobs but rarely being offered an interview.

‘This is a precarious position as we enter into the challenging winter months,’ said Ms Pickard.

‘These findings clearly show that welfare reform is having a major impact not just on households but on their families, support networks, neighbours and neighbourhoods.’

Eight landlords are leading the study through a steering group and 100 families are taking part. They are: Halton Housing Trust, Kirklees Neighbourhood Housing, Leeds Federated, Leeds and Yorkshire Housing Association, Liverpool Housing Trust, North Star Housing Group, Stockport Homes, and Wigan and Leigh Housing. Connect & Unity Housing are also participating in the interviews.