Responding to the latest inflation figure for June, Managing Director of Debt Free Advice, Matt Dronfield said:
“The rate of price rises has dropped to 7.9% from 8.7% in May. This may sound good, but it means prices are still rising but at a slower pace.
“It’s also too early to say whether it’s a sign that inflation is finally starting to come under control. Stagnant wages teamed with increasing housing and childcare costs, still leave many families, especially those with low incomes, to face higher risk of getting into debt.
“At Debt Free Advice, we’ve already seen the two main reasons for our clients’ debt this year are low income and the cost-of-living increase. The number of clients needing access to a food bank has also more than doubled since last year, demonstrating the urgent need for support.
“We believe the Government should increase access to affordable credit, expand free debt advice services, and reform the welfare system. These will protect them against future price increases and other economic shocks.”