The Joint Public Issues team has published a report called Reset The Debt on behalf of the Baptist Union of Great Britain, the Church of Scotland, the Methodist Church, the United Reformed Church and Church Action on Poverty.
They are campaigning for a biblical Debt Jubilee for people who have been swept into debt by the effects of Covid-19. They are appealing to the Government to create a Jubilee Debt Fund, in the same way as the government has offered loans and grants to help businesses survive. The primary purpose of this Fund would be to relieve low-income households from the burden of unavoidable debt that many were forced to take on during lockdown. It would also enable low income households to contribute to the recovery of the economy.
An estimated six million people in the UK have found themselves in debt as a result of Covid-19, with the biggest increases in debt amongst the poorest households. The financial impact of lockdown fell hardest on people living on low incomes and those with little or no savings. This has led to a large and growing problem of household debt.
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