§ Huw Irranca-DaviesTo ask the Secretary of State for Trade and Industry, what assessment he has made of the proportion of debt to income of different socioeconomic groups in the United Kingdom. [75759]
327W
§ Miss Melanie JohnsonThe Department of Trade and Industry commissioned a household survey into the cause extent and effect of over-indebtedness. The report was published on the 27 November 2002 and contains data on consumer credit repayments as a proportion of gross monthly income.
The following table suggests that for non-pensioner households the lower the income the greater the likelihood that they will be paying 25 per cent. or more of their income on repayments (excluding mortgages).
Non pensioner households—Repayments as per cent. of monthly income (excluding mortgage) Household income (£) Owes nothing (per cent.) 0–25 per cent. 25 per cent. plus Under 5,000 44 25 20 5,000–7,499 42 38 14 7,500–9,999 43 45 8 10,000–14,999 39 49 2 15,000–24,999 42 45 7 25,000–34,999 36 55 2 Over 35,000 44 46 6 Pensioner households show similar patterns to non-pensioner households, but the proportions repaying credit are smaller.
Pensioner households—Repayments as per cent. of monthly income (excluding mortgage) Household income (£) Owes nothing (per cent.) 0–25 per cent. 25 per cent. plus Under 5,000 80 14 3 5,000–7,499 78 18 2 7,500–9,999 80 15 2 10,000–14,999 75 20 — 15,000–24,999 65 24 3 25,000–34,999 53 48 — Over 35,000 84 16 —