So we now face the news that government spending cuts are about to come into effect. Perhaps unsurprisingly, those who may be struggling the hardest are going to find it increasingly difficult to make ends meet: with major revisions to housing, child and incapacity benefit, fewer people will have ready cash to hand and be forced to rely more on their credit cardsor submit an application for credit knowing full well it is likely to be turned down. This will not be the bets news for families that have already had to weather the storm of recession.
Seeing as there are so many families that rely on benefits to live, the 7 billion cut from the welfare kitty will have a big impact. Reduction of sickness benefit to 1 year is designed to push people back into work, however at the same time public sector jobs are being slashed as part of a massive spending reduction. It is thought that unemployment will rise following the cuts which will wipe out thousands of public sector jobs. the job cuts will only make it harder for the long term unemployed to get back into work. It looks like an increasing number of people will need special credit services like credit card for adverse credit or debt consolidation services.
Given the current staggering level of consumer debt, figured at £56,000 per household, it’s difficult to predict how long these austerity measures will need to be in place. Welfare culture in the UK looks set to suffer for the good of the country and it is doubtful that welfare spending will ever go back to current levels. Government fat cats look like being the only ones that won’t suffer from the cuts, but that was expected. It’s those in the most need of assistance that will be needing toservices in order to meet their basic living costs.
