Nearly half of Brits only £100 away from being overdue on their rent or mortgage: 'On a knife edge'

Nearly half of UK adults fear they are just £100 away from failing to pay their rent or mortgage, a shocking new poll has found. 

From a broken-down car to dodgy boiler, life is full of unforeseen expenses. But for 48% of people in Britain, even a modest financial shock could tip them over the edge, according to research commissioned by the Salvation Army.

• Labour’s housing benefit freeze leaves almost one million children at risk of poverty

The charity warned that millions are “living on a knife edge,” with dangerously thin margins separating them from housing insecurity. Nearly half of respondents said a bill of just £100 would be enough to plunge them into rent or mortgage arrears.

The government “must take notice” of the finding, said Salvation Army’s Captain John Clifton. 

“When nearly half of people are so financially fragile that they are living in fear of a £100 bill, something has gone very wrong,” he added. 

The new finding comes as the freeze on the value of housing benefit comes into effect, a policy decision that will see low income families face “cash gaps” of hundreds of pounds per year. 

LHA is supposed to ensure housing benefits cover the bottom 30% of market rents and the Tories decided to unfreeze rates in 2024 after four years. But Labour opted not to follow suit at the autumn budget. The policy will have ramifications: Big Issue calculated just how much it will cost families here. 

The Salvation Army today urged the government to reverse course. 

 “There are already over a hundred thousand people in the UK without a proper home. To protect people who are struggling financially we urge the Government to unfreeze housing benefit or risk pushing thousands more over the cliff edge into homelessness,” Clifton said. 

“Rent and bills have gone up and welfare support has gone down. Every day at our food banks, debt and employment advice services, churches and community centres we see the reality of what it’s like for people who can’t afford to feed, clothe and house themselves and their families.”

“With so many living on a knife-edge, the risk of homelessness is no longer something that happens to ‘other people’ — it’s becoming a real concern for ordinary households across the country.”

Rents have soared on average by 7.7% in the UK in the last year, and as high as 9.4% in the North East followed by London at 9.1%.

Michelle Lemos is one of those feeling the strain. The London-based mum of two rents a two-bedroom flat where she lives with her seven-year-old autistic son and 18-year-old daughter.

Lemos had been on the verge of launching her own childminding business after gaining an Ofsted licence, but those plans are now on hold due to a painful medical condition that affects her ability to walk.

Currently unable to work, she relies on Universal Credit, including housing benefit, to help cover rent and bills.

“My rent has increased from this month and I really don’t know how I will afford it. I’m worried about losing my home,” she said.

“My bills have gone up and I’m already in debt on my electricity. I’ve also had a very hard time trying to feed my family. I feel frustrated as I wanted to start working for myself, but I can’t do anything at the moment because of my medical problem.”

The Salvation Army is calling on the government to reinstate a freeze on LHA rates that allows people on Universal Credit or housing benefit to afford at least three in ten of the cheapest local rental properties.

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