Thousands in Cornwall find themselves in financial crisis

New research published today by Citizens Advice Cornwall reveals that over 40,000 people in Cornwall are can't afford their bills and essential living costs.

The study, published on June 24, uncovered a troubling trend of negative budgets.

Negative budgets are when people's expenses on fundamental bills like energy, housing, and food exceed their income, causing serious financial concerns.

The report found that energy costs and housing are the main expenses consuming people's incomes and pushing many into debt.

As a result, an increasing number of residents are likely to fall deeper into a financial crisis.

Citizens Advice Cornwall chief executive, Jon Berg, said: "What was once a rarity for Citizens Advice services in Cornwall - seeing people come to us in a negative budget - has sadly now become the new normal for our advisers.

"Getting people out of the red and into the black is what we excel in.

"But we can’t tackle a challenge of this scale alone.

"People are living on empty, cutting back their spending to unsafe levels just to get by.

"This cannot continue.

"With living standards falling, we need politicians from all sides in Cornwall to get serious about addressing the issue head on."

The study also unveiled significant political implications ahead of an approaching general election.

The research showed over half of the voters in all Cornish constituencies identified cost of living or living standards as one of the most important issues affecting their vote.

Over three-quarters stated that negative budgets are an important issue.

This local situation mirrors a national problem: across Britain, five million people, including one and a half million children, now possess a negative budget, according to Citizens Advice.

Additionally, two million people are reducing their spending to dangerously low levels to avoid falling into the same predicament.

Citizens Advice found that, unless incomes rise or costs reduce, households in a negative budget are set to face an average budget deficit of more than £4,200 each in the coming financial year.

In the Truro and Falmouth constituency, 5826 people are said to be in negative budget, while in Camborne and Redruth, the figure is 8433.