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Citizens Advice Warns 4 Million in England and Wales Are Stuck in ‘Negative Budgets

The charity urges targeted bill relief in the autumn Budget to stop monthly shortfalls worsening next year.

Overview

  • Citizens Advice calculates the scale using its client data with ONS figures, defining a negative budget as essentials costing more than monthly income.
  • People in negative budgets had an average shortfall of £343 per month in 2024/25, which the charity projects will rise to £396 in 2025/26.
  • A further 320,000 people were within £50 of falling into the red in 2024/25, with that at‑risk group expected to reach about 580,000 next year.
  • Average household debt among those the charity helps stands at £9,963, with around 860,000 children in affected homes and private renters and families most exposed.
  • The government says it is tackling pressures by building 1.5 million homes, expanding the £150 Warm Home Discount to over six million families, and uprating benefits.