StepChange, the free debt charity, revealed that two-thirds of their clients are women. The percentage of women seeking debt advice has skyrocketed from 60% in the first half of 2021 to a staggering 64% in 2023. That’s a significant leap, but why has it jumped so much?
The surge in women seeking debt advice signals that something deeper is affecting women, and the ‘cost of living increase’ is hitting us hard. We need to delve into the challenges women face with their finances.
The data shows that women generally have lower incomes and higher expenditures than men. The gender pay gap persists, and women often make more sacrifices, especially when raising children.
Personally, I took a substantial pay cut to be closer to my kids’ school for drop-offs and pick-ups and to be present for essential school events. Depending on your relationship and financial dynamics, women can find themselves paying half towards the bills on a lower salary.
This financial juggling act makes it harder for women to keep up with essential bills. The statistics highlight a higher proportion of women falling behind on household bills, including energy, council tax, and water bills.
Single Mums face a bigger struggle
Single parenting adds another layer to this financial puzzle. StepChange’s 2023 data reveals that women are four times more likely than men to be single parents, constituting about nine in ten single-parent households.
This isn’t just a number; it’s a reality impacting daily lives. Single mothers, on average, spend more and allocate a higher proportion of their income to childcare, even with an average of two kids. This puts an added financial strain, affecting not only energy bills but also the ability to put food on the table.
Some of my single-parent friends face the uphill task of providing a roof over their children’s heads, handling the majority of childcare during school holidays, and buying uniforms and new clothes. There’s extra food to buy and bills to pay – the list is endless. Even with a decent salary, this can push women into the red.
What needs to change?
The gender pay gap also plays a crucial part in this. Although most corporate firms like to ‘think’ those days are behind us, the data speaks for itself.
We need to acknowledge the challenges women face in managing their finances. It’s a conversation that goes beyond the numbers, sparking discussions and inspiring further research for sustainable solutions. Should women be entitled to more financial help from the government? Is the high cost of childcare to blame? Let’s hope that when the cost of living decreases, the percentage of women in debt follows suit.
