Record number of large, low-income families getting into debt to pay for essentials

A growing number of large families on low incomes are being forced into debt just to cover the basics, according to new research from the Joseph Rowntree Foundation (JRF).

The charity found that more low-income families with at least three or more children are borrowing money to pay for essentials than at any point since it began tracking hardship in 2022.

As the cost of living continues to put pressure on household budgets, 71% of large families on low incomes have had to take out a loan to cover basics like food, heating or toiletries. That’s significantly higher than the 60% of smaller families in the same position, and it’s rising with each wave of JRF’s analysis.

Going without

And it’s not just borrowing that’s on the rise among large, low-income families – JRF’s research also shows that:

• 88% of large, low-income families have recently gone without food, heating or toiletries
• 82% are behind on bills
• Debt is becoming a lifeline, not a safety net

Families with three or more children are now at the highest risk of falling into arrears, going without the basics, or relying on credit to cover day-to-day costs.

The bigger the family, the greater the struggle

Policies like the two-child limit fo universal credit are having a clear impact. The rule, introduced in 2017, means families only get support for their first two children – costing larger families £3,514 a year per additional child.

The government has committed to driving down child poverty and has recently announced plans to expand early years education and childcare. But we support JRF’s calls for them to go further by removing the two-child limit, which would immediately ease the pressure on struggling larger households.

Disability and debt

The research also shows that low-income households with a disabled person are more likely to experience hardship:

• 78% of working-age households receiving disability benefits are going without essentials, compared to 54% of households with no disabled people
• That figure rises to 88% when children are involved

‘Families need breathing room’

Maudie Johnson Hunter, economist at JRF, said:

“Record numbers of large families are in arrears or have no choice but to take out loans to pay for essentials. Scrapping the two-child limit in universal credit would make an immediate difference to these children's lives."

She added that alongside investment in childcare and family services, families need direct financial support and a focus on long-term stability.

Struggling with bills or borrowing to cover basics?

If you’re relying on credit to get by or worried about falling behind on payments, we’re here to help.

Get advice online or over the phone.