Analysis by the Trades Union Congress suggests that household debt has reached a new high of over £425bn.
The TUC’s research – which includes student loans and are therefore higher than similar estimates from the Bank of England – says that non-mortgage debt rose £886 to a fresh peak of £15,385 per household in 2018, equating to £428bn across the economy.
Bank overdrafts, personal loans, store cards, payday loans and outstanding credit card debts have all been compiled by the TUC to arrive at its figure, which leaves it with a total unsecured debt as a share of household income figure of 30 per cent.
Consumer credit growth has been slowing in recent years, according to the Bank of England’s most recent figures, but has still been expanding, and the TUC says as a share of household income unsecured debt is now the highest on record.
TUC general secretary Frances O’Grady says that “years of austerity and wage stagnation has pushed millions of families deep into the red” and that the government was “skating on thin ice by relying on household debt to drive growth”.