Bankruptcies rocket as inflation figures released

UNISON has today (16 August) revealed a 78% increase in members contacting them for support to declare themselves bankrupt*, as a result of the Government’s failing economic policies. Many of the members forced to file for bankruptcy are low paid women, who borrowed money to buy goods and services, but are unable to pay back because someone in the family has lost their job.
UNISON Welfare - the charity arm of the union - is predicting a further rise in bankruptcy requests, as Government cuts lead to more public sector workers losing their jobs. Many more members, who have mortgages, would file for bankruptcy, but are afraid of losing their homes, so seek other types of support. UNISON Welfare was also forced to close a new school uniforms grant scheme early, due to the high demand. The grant pot was extended several times, to £40,000, to help members across the UK buy clothes for their children to start the new school term.In the three-month period from April to June, UNISON Welfare paid out £216,741 for all types of grant. 70% of members needing help were women, with 68% falling into the 36-55 age group. A combined total of 85% of the members work in local government and health.The highest number of members asking for support were in the North West, Scotland, Northern and Yorkshire and Humberside regions. The majority of school uniform grant requests were also from the north. Requests for help with emergency crisis payments rose by 34%, basic household items by 26%, and disability equipment and adaptations, by 25%. Dave Prentis, UNISON General Secretary, said:“UNISON Welfare has provided vital support to low-paid members throughout the economic crisis, but the demand is growing by the day. The Government needs to change its economic policies, before more people are pushed into poverty. “Our members are already struggling to cope with the pay freeze and the situation will only get worse, with inflation expected to go up to 5% by the end of the year. Many are struggling just to buy a school shirt for their child. “A huge increase in requests to our charity for bankruptcy support shows the severity of the situation. “The Government should abandon all talk of cutting the 50% tax rate and concentrate instead on closing the gap between those at the top and the bottom.”The school uniform grant is payable at £50 per child up to a maximum one off payment of £150. The small grants programme was introduced in 2010 with the launch of the Help with Winter Fuel Costs Grant, to help low paid members struggling to pay bills.*The union covers up to £700 in fees to the court to file for full bankruptcy, or £90 for a debt relief order, for debts of £15,000, or lower, after the member has fully qualified for assistance.