ABSTRACT
This chapter explores the relationship between both poverty and debt and poverty and state benefits. Personal debt is increasingly being seen as a problem. In 1988, the Citizens Advice Bureau reported half a million requests for help with debts. Financial deregulation during the 1980s, combined with an increase in real incomes for the average household, led to an increase in both the supply and use of credit. In the Breadline Britain survey this was classified as a ‘problem debt’. The survey provided more evidence on the link between debt and poorer households. Households receiving Family Credit experience the highest levels of poverty. Family Credit is paid to those in employment and who have at least one child. Inequalities in income exist between the different recipients of benefits. Minimum or actual average weekly household income is greatest for those receiving Sickness Benefit and Attendance/Mobility Allowance, and lowest for those on Housing Benefit and Income Support.
