Is the country ready for a debt tsunami?

Major charities, campaigners, and even a government department have issued dire warnings that the UK’s level of personal debt will soar over the coming months to engulf millions of households if left unchecked.

The furlough scheme was introduced in spring 2020, to avoid redundancies during the national lockdown. The government paid 80% of the wages of people who could not work due to the impact of the pandemic, up to a monthly limit of £2,500.

How is furlough changing?

  • From 1 July, the government agreed to pay 70% of salaries, with employers expected to pay 10%

  • In August and September, the government will pay 60% and employers will pay 20%

  • The monthly limit of £2,500 will stay in place, so workers will not notice the difference

  • The scheme looks set to end in September 2021

By making furlough more expensive for employers, the government hopes to encourage them to take workers back full-time. However, many forecasters are expecting a rise in unemployment as furlough support is lifted, and employers are required to enhance their contributions.

The government has also confirmed the £20-a-week increase to universal credit will also be "phased out" in the autumn.

Universal credit is claimed by more than 5.5 million households in the UK.

It was introduced to replace six benefits and merge them into one benefit payment for working-age people. The £20 top-up was extended by six months in March in an attempt to avoid households slipping further into financial difficulties.

IE Hub is working with its partners to enhance processes and improve efficiency so they are ready to manage the expected increase in volume and complexity of customer arrears cases. Our network is expanding to engage hard-to-reach customers while our online portal helps individuals reduce the stress and anxiety of speaking with creditors.

You can join our network and be live to meet the demand in just 5 days. For more information or to request a trail e-mail