New figures show that more than 13,000 children in Bolton are trapped in problem debt

Reports suggest that Philip Hammond could outline measures including a freeze in fuel duty and policies to reduce the burden of childcare in a move to help the so-called JAM sector of society, which focuses on families who are ‘just about managing’.

And research from The Children’s Society charity would suggest that the measures are badly needed in Bolton, with 13,100 children living in families that are trapped in what is known as problem debt and are going without food, clothing or heating because of their families’ financial problems.

That number is higher than many other Greater Manchester boroughs, with only Stockport, Wigan and the much bigger Manchester boroughs having more children in the category.

Across the Bolton borough, there are a total of 7,500 families living with problem debt — which means they are failing to keep up with household bills and loan repayments.

It is something that Bolton North East MP David Crausby says the Government must tackle. He said: “The Government needs to start making poor people a priority instead of using them to boost the economy through lending. Debt education is a very important issue because once people fall into the debt trap it is a slippery slope and very difficult to get out of.”

The research by the charity shows that families with children are more than twice as likely to have been trapped in problem debt as childless households.

This is because families with children are more likely to face unexpected bills and are less able to cope with sudden financial shocks, caused by things like redundancy, reductions in working hours or illness.

The research also found that problem debt is putting stresses on family relationships, damaging children and trapping families in a downward spiral of borrowing.

This leads people to take on credit, which often marks the beginning of the debt trap as repayments take up a larger proportion of income and families find themselves cutting back on essentials.

Now The Children’s Society is calling for changes to how creditors treat families with children who fall behind on bills and repayments. It is urging the Government to introduce a 12-month ‘breathing space’ scheme to give struggling families a period of protection from additional charges, mounting interest and enforcement action while they seek advice, put their finances in order and get back on their feet. The survey of 2,000 adults, carried out by Opinium, found that families in problem debt over the last year are juggling an average of four different types of debt.

The most common source of problem debt is arrears on energy bills, followed by loans from friends and family, bank loans, and council tax.

Rob Jackson, North West area director at The Children’s Society, said: “Again and again we have raised the urgent problem of families who are trapped by debt, and whose children often pay the price with their mental and physical health.

“It is now absolutely clear that this problem is not going away unless the Government takes action to give families the breathing space they need to get their finances back on track. Acting now could have a hugely beneficial impact, not just on family finances in the short term but on the futures of some of the country’s most vulnerable children.”

Mr Hammond’s Autumn Statement will be heard in the House of Commons from 12.30pm. Follow local reaction to the measures set out in tomorrow’s edition.