A new report has highlighted the number of households struggling to cope financially which is ‘an alarming cause for concern’, according to Labour AM Eluned Morgan.

In its report, ‘Wales in the Red’, leading debt charity StepChange has revealed that nearly a quarter of Welsh adults, that’s 605,000 people, are showing at least one sign of financial distress; with women, younger adults and single parents disproportionately affected.

In discussing the report with StepChange chief executive Phil Andrew, Ms Morgan heard about the financial issues facing residents in Dwyfor Meirionnydd and Ceredigion.

“StepChange’s Wales in the Red report is an alarming cause for concern and highlights the increasingly difficult financial position of households across the county,” she said.

“Reflecting on the contents of this report, and in evaluating the help I provide constituents through my office, it is clear that changes to the social security system and the rising cost of living are significant factors in this worsening of people’s financial situations.

“In some cases, even after financial advice, household outgoings are still greater than the income families are able to earn.”

The report shows that the average level of unsecured personal debt was £10,415 with the main cause of debt being reduced income, a loss of earnings due to injury or illness, unemployment and family breakdown.

A total of 51 per cent of those surveyed said that they were falling into arrears on household bills.

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