If you’re having difficulty affording your everyday expenses and need help to pay your bills or buy food for yourself or your family, you have several options. The stigma surrounding debt can prevent many from accessing the help they desperately need, but debt can affect anyone at any time and is more common than you might think.
Realising you’ve not budgeted enough for a weekly food shop or set enough money aside to pay for your gas and electricity can be daunting, but it’s important to try not to panic. From government grants to emergency loans, there is always help available.
I need help with my finances immediately. What should I do?
If you’re experiencing financial hardship and need immediate help, there are several options available to you. It can be tempting to borrow money to cover the cost of an unexpected expense, but most loans come with high interest rates and can cause long-term damage to your finances if you miss repayments.
Here are some of your options if you’re struggling and need immediate financial help:
Benefits
If your wages don’t cover your outgoings or you’re currently out of work, benefits can provide a regular income to ensure you’re still able to maintain a reasonable standard of living.
It’s a common misconception that benefits are only for unemployed people. The truth is, you might still be able to claim certain types of benefits to supplement your existing income if you work, have savings, and own your home.
If you’re receiving benefits but you’re still struggling to make ends meet or your benefits have been capped for whatever reason, you may be able to apply for a hardship payment to ensure you’re able to afford day-to-day life.
However, because hardship payments are a loan, the money will need to be repaid through deductions from future benefits payments once your sanction has been lifted. In other words, a small amount will be deducted from each benefits payment after the sanction has been lifted until the total hardship payment has been repaid.
If you’ve applied for benefits (e.g. Universal Credit, Income Support, or Employment and Support Allowance) but you’re waiting for your claim to be processed (which can take up to five to six weeks), you can apply for an ‘advance’ to tide you over until you receive your first payment. This will also need to be repaid through future benefits payments.
Local Welfare Assistance
If you’re facing an immediate financial crisis or need help to allow you to continue living independently, your local council might be able to provide support through a discretionary support scheme known as ‘Local Welfare Assistance’.
Most local authorities provide local welfare assistance, but they aren’t legally required to. The level of support also differs from council to council.
The best way to find out if your local council provides local welfare assistance is to reach out to them directly. It might also be known as the Discretionary Assistance Fund (Wales), Finance Support Service (Northern Ireland), or Scottish Welfare Fund (Scotland).
Household Support Fund
Some local councils can help you find essential items you need to maintain a reasonable standard of living, such as white goods (e.g. a fridge, freezer, or cooker) and furniture (e.g. a bed, sofa, or wardrobe) under something called the ‘Household Support Fund’ scheme.
It was originally introduced in 2021 to help households struggling with the cost of living crisis and has been extended to early 2025 to ensure as many families as possible can access emergency help over the winter period when utility bills are typically at their highest.
The Household Support Fund is aimed at anyone struggling to pay for essential items, not just those receiving benefits. This also means that any existing benefits you receive will not be affected by any support you get from your local council under this scheme.
I can’t afford my rent. What are my options?
If you’ve missed a rent payment (known as being in rent arrears) or you’re worried you won’t be able to continue to afford your rent for much longer, it’s important to reach out for free advice as soon as possible.
It’s normal to find the thought of being evicted daunting or worry about what your landlord might say when you tell them you’re struggling, but ignoring the problem will only make the situation worse in the long run and, in most cases, you’ll miss out on the opportunity to come to an agreement over how to repay what you owe.
Like council tax and income tax, rent arrears are classed as a ‘priority debt’, which means there can be serious consequences if left unpaid. Because of this, it’s crucial to take action sooner rather than later.
Here are your options if you can’t afford your rent:
Talk to your landlord
The first thing you should do if you can’t afford your rent is to reach out to your landlord and explain that you’ve had a change of circumstances.
Even if you can’t afford to make up for the missed payments, they might be sympathetic and agree to delay an eviction until you find a solution to deal with your rent arrears.
Regardless of your financial situation, it’s important that you don’t ignore your landlord’s attempts at getting in touch with you over the missed payment. They might assume that you have the money but are refusing to pay and speed up the eviction process as a result.
Apply for Breathing Space
If you’re in rent arrears and need time to decide how you’re going to deal with what you owe, a scheme called ‘Breathing Space‘ could give you up to 60 days of protection until you know what your next steps are going to be.
During this time, your landlord won’t be able to contact you, request payment, or add interest and charges to your debt. This can give you the time and peace of mind you need to focus on finding a solution.
However, Breathing Space only applies to existing debt, which means you’ll still need to pay your rent as normal during this time and if you accrue further debt, your landlord can contact you about it. It’s also only possible to apply for the scheme once every 12 months.
Check your benefit eligibility
If you’re falling behind on your rent payments, it’s worth checking if you’re eligible for benefits that could help you cover all or part of your rent.
The type of benefits you’re eligible for depends on your financial situation. For example, Universal Credit (UC) is the most common type of benefit and is designed to help people who are on a low income or unemployed afford essentials like housing and bills. UC might also make you eligible for help with health costs.
Housing Benefit, on the other hand, is designed to help people who are on a low income or unemployed afford their rent payments. If you’re in receipt of Housing Benefit, you’ll also qualify for ‘Discretionary Housing Payment’.
Where can I get food in an emergency?
If you have no money for food, it’s recommended to visit your local food bank as soon as possible. They should be able to give you a few days’ worth of food, toiletries, baby basics, sanitary items, pet food, and sometimes even vouchers for gas and electricity so you can keep your household running as normal.
The Trussell Trust and Citizens Advice contains information on all local food banks and can help put you in touch with a local organisation in your area offering emergency food parcels. In most cases, you’ll need a voucher from a local referral partner like a GP, support worker, or local council, before you can attend a food bank.
Alternatively, most independent food banks, soup kitchens, and community pantries provide free food without a referral. Some food banks might also be able to connect you with other organisations in your area that might be able to help you improve your circumstances, such as local charities, housing associations, or children’s centres.
Depending on your circumstances, your children may also qualify for free school meals if you receive certain benefits. This can ensure they’re getting a hot and nutritious meal every day and give you peace of mind that they’re not going without.
I need help to pay my energy bills. What should I do?
If you need help to pay your energy and water bills, the first thing you should do is contact your supplier and explain your situation. They have to help you come to a solution and will usually be willing to negotiate with you to help you come to an arrangement.
When you reach out to your supplier, you must make it clear that despite not being able to afford your energy bills as they stand, you’d be happy to pay off what you owe in regular instalments as part of a payment plan that covers what you owe plus your current usage.
For example, if you owe £400 but can only afford a maximum of £40 a week, you can agree to pay £10 a week towards the debt and £30 towards your current usage until the debt has been fully repaid. This can allow you to make fixed payments over a set period and, most importantly, avoid further debt.
Can I stop my creditors chasing me for an unpaid debt?
If you’re being chased for an unpaid debt that you know you can’t afford, it’s important you know what your rights are and how long your creditors can legally keep asking you for payment.
In the UK, most unsecured debts (e.g. credit cards, store cards, and overdrafts) have a ‘statute of limitations’ or ‘limitation period’ of six years. This means that, after this time, your creditors legally won’t be able to contact you about them or ask you to make a payment towards them.
However, it’s not quite as simple as waiting six years for your debt to become statute barred. During the limitation period, your creditors can still chase you for payment, take legal action against you, or add interest and charges to the debt. The limitation period will also be reset if you acknowledge the debt, contact your creditor, or make a payment – no matter how small – during this time.
Alternatively, you might be able to ask your lender for a payment holiday or a payment deferral, which is an agreement to temporarily pause or reduce your mortgage, credit card, or loan payments for a fixed period (usually between three to 12 months) until you get back on your feet.
Once your normal payment schedule resumes, you’ll need to repay what you owe (including any interest that accrued during the payment holiday). This means that while you won’t have to pay anything towards your debt for a set time, you could end up owing more than did you before you took the payment holiday.
Conclusion
Struggling with your finances can be an isolating experience, but you’re not alone and there are various options available. Depending on your circumstances, you could qualify for government support in the form of benefits, welfare assistance, or even vouchers to help you furnish your home.
The stigma around debt stops thousands of people from getting debt help every year, but the sooner you reach out, the sooner you can get your finances back under control.
If you’re looking for free advice tailored to your circumstances, don’t hesitate to contact a debt help organisation, financial charity, or credit union. They will discuss your options for improving your financial situation and let you know if you qualify for any charitable grants or government help.
