Certain housing proposals contained in the recent emergency Budget could lead to a rise in debt, one expert has suggested, which might interest those who are thinking of applying for
poor credit credit cards.
Teresa Perchard, director of policy at
Citizens Advice, has noted the impact that plans concerning a local housing allowance rate cap could have.
She feels that those who receive housing benefit may end up being priced out of some UK regions because of this cap.
Ms Perchard commented: "We predict more debt and homelessness, as people try to make up the difference between the rent they must pay and the benefit they receive."
Commenting on the Budget as a whole, Ms Perchard went on to say that rather than improving conditions for poorer people, the spending plan could leave those on lower incomes worse off.
George Osborne, the coalition's chancellor of the Exchequer, revealed in his Budget on Tuesday (June 22nd) that VAT will hit 20 per cent in January of next year.
Posted by Gemma Walker.
