There could be spike in personal loan applications following the announcement that the government is set to cut housing benefits.
In the light of the present economic situation when people's finances are already stretched, this move could further increase their monetary strain.
According to a national charity for single homeless people, cutting housing benefits could increase homelessness in the UK.
Duncan Shrubsole, director of policy and external affairs at Crisis, "People will have to go without food, and they are going to get more into debt [and] rent arrears. Eventually they become dependent and it costs more for the average taxpayer in the long run than it would to keep them in their current accommodation."
He also pointed out there were not enough houses being built to meet the current demand.
The Trades Union Congress estimates that cutting housing benefits would leave 194,000 unemployed people out-of-pocket by £500 a year.  |
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