The cost of living crisis has driven three million Brits to loan sharks, new research has found.

Illegal lending is a risky business, often involving eye-watering interest rates and the threat of physical violence. But almost one in 12 UK adults have turned to an illegal lender over the past three years, a report by financial inclusion organisation Fair4All has shown.

Some 7% of GB adults (3.3 million people) have used, or believe someone in their household has used, illegal moneylenders since 2021.

The research also found that 15% of GB adults are aware of an unlicensed lender operating locally.

• ‘Breaking point’: Debt charities and ethical lenders fight to save families from loan sharks

A lack of affordable short term credit drives people into a vicious cycle of borrowing from illegal sources, said Niall Alexander, credit and consumer markets lead from Fair4All Finance.

“Increasingly, lower income households have few or reducing options when it comes to accessing legal forms of credit, even the most expensive forms,” he said.

“What happens to those people when they need credit and can’t get it… Does their need for credit go away with a refusal? In some cases they may go without food, sell possessions or make other difficult choices. It is clear that others are enticed, whether by choice or through deceit, into borrowing from unregulated lenders.”

Some 16% of those declined for regulated credit had either used a loan shark or knew that someone in their household had, compared to 5% of those who had successfully applied for mainstream credit

The data ought to be a “major concern” to policy makers and regulators, he said.

“We hope that this report encourages those groups to consider practical steps to reshape the credit market and stem the growth of illegal lending,” Alexander said.

Why do people need to rely on loan sharks?

Sky-high bills and soaring prices are driving increasing numbers of people into debt.

According to new Trade Union Congress figures, just one in seven people think their living standards are improving this year. And earlier this year, a survey for Debt Justice found that 13% of adults had missed three or more credit or bill payments in the last six months, a figure that rose to 29% among 18- to 24-year-olds and a quarter of 25- to 34-year-olds.

This kind of desperation drives borrowers to illicit sources of credit, said Neil Kadagathur, CEO of responsible lender CreditSpring.

“Illegal lenders thrive on the desperation of borrowers who have exhausted all their mainstream options and are left with nowhere else to turn,” he warned.

“These predatory lenders often offer extortionate interest rates and additional fees which borrowers have little choice but to accept – if an illegal lender whacks on an unexpected charge, there is no formal complaints process to support borrowers.”

Big Issue is demanding an end to poverty this general election. Will you sign our open letter to party leaders?

CreditSpring research shows that people are turning to loan sharks to put food on the table.  

One third (31%) of respondents said they now feel stuck with no way of improving their financial situation, while a fifth (19%) said they turned to an illegal lender to cover the cost of everyday expenses like food and household bills. A sixth (15%) said they needed the loan to pay their rent or mortgage.

While the cost of living crisis grinds on, the need for borrowing will continue to rise. As this demand surges, the Big Issue blueprint for change has called on Westminster leaders to make loans and credit sources affordable, equitable and fair.

Too many people are priced out of borrowing, leaving them feeling like a loan shark is the only choice.

The UK consumer credit market has grown by more than 50% in the past year, but the three forms of credit most commonly available to lower income customers pre pandemic now account for just 0.3% of lending. This is down from 4% in 2013.

UK banks should consider emulating the success of ‘small dollar loan’ products in the US, Fair4All suggests.

“Getting the right balance between consumer protection and consumer access to credit is tricky, but it is clear that as it stands, the market is excluding too many people,” said Alexander.

“Mainstream finance must be more innovative and develop new products to address the credit vacuum for those on lower incomes, left behind communities and other disadvantaged groups.”

Dan Hatfield has been offered a cast of Justin Beiber’s penis and a vial of bathwater that Whitney Houston died in (both supposedly genuine, although he was given no way of verifying that). That’s on top of the Fabergé eggs and superyachts. An unusual way to make a living but he loves it.

A money-making expert and regular on ITV’s This Morning, Hatfield is, first and foremost, a pawnbroker. He gets most excited when people come in with items they had no idea could earn them thousands, like the woman who did not realise she had been gifted a £15,000 Rolex watch.

After being made redundant during the financial crash, Hatfield took over his family’s pawnbroking business and later became a TV personality, almost by accident. His first shows Posh Pawn and Million Pound Pawn were about the high-end luxury business and lucrative deals which can be made through pawnbroking.

Still, Dan Hatfield believes his money-making advice applies to the masses. At a time when employers aren’t paying people enough and the government’s financial support isn’t stretching, he thinks individuals and communities should look take it on themselves to make more money.

It feels a tad “pull yourself up by your bootstraps” at a time when we should be holding power to account, and it’s hard to forget the world Hatfield is coming from – but there’s little doubt his advice resonates with big audiences and genuinely helps people. And he has such compassion and is so well-intentioned that people really want to listen.

It might not change your life in the long-term, unless you’ve got a Rolex watch lying around, but an additional bit of cash could tide you over until the next paycheque. 

Hatfield’s new book Money Maker is all about using the stuff and skills you already have to make a little extra money and use your income. His main piece of advice is not to try to be Richard Branson or Bill Gates and just start with the basics.

Big Issue chatted to Dan Hatfield all about his advice for making money, his favourite anecdotes from the world of pawnbroking and what more needs to be done to support people in the cost of living crisis.

Congrats on the book! How does it feel now it’s out? 

It feels so strange to call myself an author. I’m incredibly proud. None of us thought the cost of living crisis would still be rumbling on in 2024 but it is. I think we’ve still got challenging times ahead of us in the next 12 to 24 months. 

I wanted to write a book that would empower people and help people to understand that we need to not rely upon successive governments to get us out of this financial crisis.

I wanted to try and get the get across the message that if we work within our communities, and we work to help each other and we try and promote a circular society, perhaps we can create something a little bit different and a little bit better, and not allow big corporate companies and governments to dictate to us what the financial landscape should be.

How have the last couple of years been for you as a money expert? Have you noticed a change and an increase in worry? 

I am getting hundreds of emails a week from people asking me for advice ranging from ‘I’ve been made redundant’ and ‘I’ve got a certain amount of money. What would you suggest investing in?’ right through to ‘What kind of side hustles do you think I should undertake to earn extra money?’ The thing is, there is no hard and fast answer to that. We’re all unique.

Let’s strip it all back and have a look at who you are as a person. What are your strengths? What are your weaknesses? What opportunities can you see within the world and what threats could you see that might hinder your money-making possibilities?

I talk about a bubble and by that I mean the world that you inhabit. What interests do you have? What items do you have? What hobbies do you hold that you might be able to monetise?

What’s the most popular question that people come to you with?

How much is this worth? Brits have around £48bn of unwanted items collecting dust. I’m sure you’ve got something in your home that you’ve wondered the value of. That could be anything from a kitchen gadget right through to a 90s toy or old CDs or DVDs.

Everything has an intrinsic value. We throw away hundreds of thousands of tonnes of stuff that goes into landfill every year. And the only thing that is doing is being detrimental to our environment. If you want some extra cash, the first thing to do is not to try to be Richard Branson or Bill Gates but to look at yourself and what you’ve got and start with the basics.

Are there any items you’ve dealt with that particularly stand out to you?

Oh my gosh. I’ve dealt with everything from Fabergé eggs to superyachts. I once got offered apparently a genuine cast of Justin Bieber’s penis, right through to a vial of water that Whitney Houston had died in, supposedly. I come across weird and wonderful things. 

But the most amazing things for me are things that people have at home that they did not know the value of. I used to do a TV show called Million Pound Pawn and we had a lady who worked in a nursing home during Covid and one of her patients passed away, and she was gifted his watch. She thought the watch was worth about £200. It was actually a Rolex watch worth £15,000. That changed her life.

If we try to understand how much our items are worth, we would be creating a more circular society. If we reuse, refurbish and recycle, that helps us not just environmentally but economically as well. I think the environment and economic side of things go hand in hand.

Do you feel that pawnbroking has changed your life too?

Absolutely. I worked in the City prior to working in pawnbroking and I got made redundant in the mid-2000s crash. But my family have been pawnbrokers for years. There’s sometimes a bad reputation where pawnbroking is concerned but actually it’s a fabulous way to unlock money very quickly from items. It’s a secure loan, which means that if you borrow something off us and you don’t have the money to pay us back then you can lose your item without debt collectors chasing you. 

It’s about buying the crazy, wonderful things as well. I really love it. I’m proud that we’re now authorised by the Financial Conduct Authority as an industry which means we adhere to the highest standards. Our very ethos in everything we do is always putting the customer first. Gone are the Dickens days that you imagine pawnbroking to be. It is now a very viable way of unlocking money.

• Pawnbrokers’ phones are ‘ringing off the walls’ in the cost of living crisis
• Families are pawning their belongings to pay for food as the cost of living rises

We’ve spoken to pawnbrokers before in our reporting and they said it’s a thriving industry in the cost of living crisis. Is that something you’ve seen?

It is something I’ve seen. I speak to a lot of pawnbrokers and as a group we are acutely aware of the financial difficulties that many people find themselves in. A lot of us have dropped our interest rates. If someone’s struggling to buy their item back they’ve loaned against us, lots of us now drop our fees in certain circumstances. A lot of people call us. A lot of people need us.

But pawnbrokers have stepped up to the mark and they’re trying to do things in a fair manner, so I’m really proud of the industry. It is one of the oldest industries in the world. We wouldn’t exist if we weren’t needed.

Was there ever a time in your life when you worried about money?

Yes, absolutely, while studying at university. That was a tricky time. You’ve just got into adulthood and trying to balance your own bank account is a really hard thing. I don’t think as a nation we help young people to understand how to balance the books. We turn 18 and we’re just expected to have these skills.

Even in my mid-20s, it was hard to learn that I can’t just spend everything on myself and self-gratification. We need some kind of system in place in our schools. We have not addressed that and I don’t understand why we haven’t addressed that. As we evolve out of this new financial landscape, one thing that we’re going to have to do is teach our young people how to survive economically. That starts in schools.

In the aftermath of the cost of living crisis, lots of people are struggling and have nothing left to sacrifice. What would be your advice in these circumstances?

There is light at the end of the tunnel. The world around you has lots of things you can utilise and monetise. It’s really important to stress that I don’t mean sell the family silver sets or items that you don’t want to sell.

Even if you think you have nothing in your house you can make money from, one of the simplest things is to actually delve into your wardrobe. We’ve got 350,000 tonnes of clothes going into landfill each year. We have treasure troves in our homes.

There is stuff in your homes that you can make money out of. And after that, it’s about looking at your skills and your hobbies and everything that you’re interested in. 

We should all have a look at side hustles. Around 44% of Brits have side hustles. There’s a massive move to getting incomes from alternative means. People have found, especially in 2023 when inflation was going crazy, that a lot of us can’t just survive on the income that we’re earning from our companies. We have to find other ways to supplement incomes. This can be a fun too: focus groups, surveys, mystery shopping. When I was at university, I was an extra in a TV comedy.

Do you have a favourite piece of advice?

I think renting out your items is going to be a massive aspect of making money in the future.

How many people have wedding dresses they just don’t use anymore? For some people, it’s the biggest financial commitment they’ll ever have other than a house. You could get between 10% and 15% of the value of your wedding dress by renting it out. You only have to rent your wedding dress out seven to 10 times to pay for your wedding dress.

The average lawnmower costs £150. You can get between  £15 and £20 per day renting out your lawn mower. We maybe use a lawnmower once a month, so the other 30 days of the month, you could be renting it out.

I wanted to come back to this lack of government support and lack of income meaning that people are struggling. How does that make you feel that people are having to take it upon themselves to survive?

I think it’s terribly sad. It’s a double-edged sword, isn’t it? I think we’ve had a nanny state whereby we’ve almost been led to rely on governments. I think we can take that power into our own hands. We can become self-sufficient. We can find ways out of economic woes by using our own initiatives. 

So it does make me sad, and I think that in the short-term, we definitely need more help. People need to be helped because we’ve been led into this position, but long-term we need to take that power back and we need to realise that actually, the people that can alleviate our economic woes are ourselves. 

That probably sounds a little bit of tough love, but we can’t rely on successive governments. I think as economics change and become more turbulent, we might see governments coming back and forward at a quicker rate. So we’ve got to work within ourselves.

Did you ever imagine you’d be a TV star?

No. This all started in a really random way. I had taken over the pawnbrokers and I got a phone call from a researcher at a production company asking if I wanted to take part in the first show I ever did, which was Posh Pawn on Channel 4. I was going to quit. I was actually going to phone up the production company and tell them that I wasn’t going to be a part of the show because I got cold feet. 

I got the wrong date. I thought we were filming a week later. I arrived at work all ready to make a phone call to the production company and there was a director and an assistant director and a runner with cameras ready to film that very day. It was by accident I got into this. I did Million Pound Pawn, did an interview with This Morning, and then one of the producers phoned me up. 

I thought I was in trouble because I’d taken two bottles of water out of the green room, but they actually said: ‘We love your message. We love your enthusiasm for making money and helping people. Would you want to do two or three more segments?’ Two years later, I’ve lost count now. I’m knee deep in it and part of the This Morning family. I am in the happiest of places because I’m doing what I love, which is helping people and trying to get more people more money in people’s pockets.

Money Maker: Don’t Just Save It, Make It! is available now, published by Catalyst (hardback, £16.99).

Do you have a story to tell or opinions to share about this? We want to hear from you. Get in touch and tell us more.

In a cost of living crisis, it’s worrying to be hit with any increase in regular outgoings. Usually, we can respond by taking our custom elsewhere. But when we face a rent increase, it’s not so easy to up and leave. So while it’s natural to feel stuck and left with little choice, be assured that if that happens, there are measures we can take to contest the change.

The Underlying Issues
While mortgage rate increases play a part in today’s rental crisis, the root issue is arguably unchecked supply and demand. In London, for example, research from the London School of Economics found a 41% reduction in the number of homes available for private rent since the pandemic, causing more competition for fewer properties, which drives up the market value.

Impact of Rent Increases
That means significant rent increases are becoming all too common. In the year up to January 2024, private rents increased by 6.1% in England, 6.8% in Scotland, and 7% in Wales, according to the Office for National Statistics. The repercussions have become a political issue. As more and more of us face rent hikes, it’s hitting headlines. And as more people turn to councils for help with homelessness, and are then put in expensive temporary accommodation, it’s helped to bring many councils close to bankruptcy.

Governmental Response
There has been a governmental response, including rent caps for social housing. However, overall it’s been less effective than needed. In Scotland, evictions were blocked and rent increases have been capped at 3% since September 2022, but these measures came to an end on 31 March 2024. In England, the government promised to give tenants more security through the Renters Reform Bill five years ago, but this is still going through parliament.

Hope for Renters
Yet there are clear signs of hope in the long-term. Renters will be in a stronger position once the Renters Reform Bill does go through, and both Scotland and Wales are considering rent controls.

Actions to Take
But there are still things that you can do to challenge an unfair or unaffordable rent hike – renters have more power than landlords perhaps realise.

Talk to Your Landlord

It’s always a good idea to discuss the issue with the landlord to try to find a solution that works for you – if you don’t ask, you don’t get! Landlords won’t want to lose a good tenant, so there may be room for negotiation once they hear your position, especially if you can gather evidence on why you think the rent increase is unreasonable or unworkable. If you come to an agreement, make sure to confirm it in writing.

Check Your Increase is Valid

If you are on a rolling contract with no fixed end date (known as a periodic tenancy) a landlord can only increase your rent once a year without your consent. If they try to increase it again within a year, it’s unlikely to be valid. You might be on a short-assured tenancy or a fixed-term contract, like a six- or 12-month contract. In this case, your landlord needs your agreement to increase your rent during this period, unless there’s a clause in your contract that allows it, so check your contract. Or you might have received a Section 13 notice. This gives notice of an increase but is only valid if you have a fixed-term, periodic, or an assured tenancy (a type of contract that was in place between 1989 and 1997). With rolling contracts, it can’t be issued if there is a rent review clause, and it’s only valid after the first 12 months of your tenancy. If these conditions don’t apply, you can challenge the notice.

Refer it to a Tribunal

If talking to your landlord doesn’t help, you can take it to a tribunal for free – but you’ll need to apply before the rent increase begins. The tribunal is made up of professionals in the industry, for example, solicitors and surveyors. They’ll look at your evidence, at the costs of renting in a similar property in your area, and how much the landlord could get if they were to rent it to someone new. In Scotland, you can challenge it through Rent Service Scotland. Here, you need to apply within 21 days of getting the rent increase notice. The tribunal or Rent Service Scotland will decide if the rent increase is fair, and if not, set the new rental cost (be aware that on occasion, this may be higher than what the landlord was originally asking). The landlord won’t be able to increase the rent again for another 12 months.

Get Support from a Union

A union that covers tenants, like Acorn, London Renters Union or Greater Manchester Tenants Union, can challenge rent increases on your behalf, as well as help with other tenancy issues, like evictions and stolen deposits. You’ll need to join the union first, which involves a small membership fee. In addition to helping with individual issues, the unions – as well as other campaign groups like the Renters Reform Coalition and PricedOut – push for policy changes to give more power to renters. Big Issue Invest and Experian set up The Rental Exchange in 2010 to ensure that rent payments are included in credit scores. Search ‘Big Issue’, ‘Rental Exchange’ and ‘Experian’ to find out more.

Jonny Butcher of Acorn, a community union for people fighting through the cost of living crisis, says: “We’ve challenged rent increases by picketing letting agents, or negotiating with landlords as a group rather than individually. In Bristol a few months ago, we campaigned about a 66% rent increase for a member, and were able to stop that rise.” Butcher thinks there’s cause for hope in this election year. “Political parties are starting to realise it’s in their interest to start doing something about the housing crisis now,” he says. “Something has to change or a great number of people are going to be pretty screwed.”

With winds changing in favour of tenants, there’s no need to feel like a rent increase is a ruling that’s being thrust upon you. Instead, consider it the beginning of negotiations.

For More Information
For more information on The Rental Exchange visit The Rental Exchange

Helpful Links

Citizens Advice
Shelter
Generation Rent
Living Rent (Scotland)
London Renters Union
Acorn Union
Greater Manchester Tenants Union
StepChange Debt Charity
Renters Reform Coalition

A cut to National Insurance comes into force from Saturday (6 April), hailed by chancellor Jeremy Hunt as part of “record tax cuts” which shows the government “stands behind those who work hard”.

Despite claims of a £450 boost to incomes, it offers little for low earners – with only those earning above £26,000 a year set to benefit overall from the change.

The tax, which makes you eligible to receive benefits like the state pension and jobseeker’s allowance, is being cut from 10% to 8%. National Insurance is paid by those earning over £12,570 a year. 

At the same time, minimum wage has increased by almost 10% this month, but the level at which you start paying tax has stayed the same. This “fiscal drag” means many will start paying tax, or pay tax on a larger amount of their earnings. For those on lower incomes, it will mean a higher tax bill.

The ‘stealth tax’ led to Hunt being branded a “fiscal drag queen” after delivering the Spring Budget in March. As well as a freeze in the point at which employees start paying National Insurance, the income tax threshold will remain frozen at £12,570 until 2028.

In fact, for every £1 gained by the cut to National Insurance, £1.30 will be taken away thanks to the frozen threshold, the Institute for Fiscal Studies estimates.

That’s before you get to the impact of the National Insurance cut on benefits. Those seeing their net earnings increase thanks to the tax cuts will also see more income taken into account for means-tested benefits like universal credit, resulting in them

When Rishi Sunak froze thresholds in 2022, it generated an average saving of £330 a year.

By the end of the decade, frozen thresholds will bring in £41.1bn in tax revenue, while tax cuts will save workers just £21.4b. The Labour Party said this would leave families £870 worse off.

Investment platforms often advertise themselves as ‘making your money work for you’. But do you know who else your money is working for? Every year, some asset managers pour millions into industries like tobacco, global armaments, and oil and gas.

Worse still, many of these funds advertise themselves as sustainable. Over a three-month period last year, asset managers used investment funds branded as green or socially responsible to invest more than £800 million in fossil fuel firms, research released by Common Wealth think tank has revealed. But there are options for ethically minded investors.

There are platforms such as the Big Exchange, co-founded by Big Issue, that only list funds that have been independently rated for their positive contribution to people and planet. The platform offers investors the chance to put their money to good use, says Kim Goodall, a Big Exchange Impact Analyst.

“If you want to invest with your conscience, the homework’s done for you, you can just come to the platform,” she said. “You just have to know what is important to you.”

Ethical investing is an umbrella term. Traditionally, it involved starving harmful industries like tobacco or armaments of investment – a practice known as “exclusionary” investing. In recent years, it has expanded to include companies aiming to make a positive difference; this is known as “impact” investing. Both are on the rise, as the climate crisis pushes the environment into the mainstream.

According to a study released by Morgan Stanley in January, more than half (56%) of individual investors say they plan to increase their allocations to sustainable investments this year. Another survey – conducted by financial advisory organisation deVere Group – shows that 70% of investors believe ESG (environmental, social, and governance) investments lead to higher returns.

The trend is not a “blip” but a reflection of a “fundamental shift,” Nigel Green, DeVere CEO, said. “People are increasingly drawn to ESG investments for a multitude of reasons, spanning ethical considerations to financial prudence,” he told FTAdviser.

“This survey reflects a broader shift in investor consciousness – a realisation that investing in a sustainable future is not only ethical, but also a savvy financial strategy.”

Ethical companies are “better equipped to navigate regulatory changes, reputational risks, and operational challenges”, he added.

Bloomberg media predicts that ESG assets will hit $50tn by 2025, representing more than a third of the anticipated $140.5trn in total global assets under management. As climate change bites, ethical investing is going to get more mainstream, said Goodall.

“The fundamental things driving this style of investing are not going to go away,” she said. Impact investing in particular can make a huge positive difference. Big Issue Invest – part of the Big Issue group, and separate to the Big Exchange – has invested over £80m in more than 550 social enterprise organisations since its 2005 launch.

But would-be sustainable investors have to be careful. Greenwashing is on the rise. Consumer champion Which? encourages investors to view ESG rating “with suspicion”.

“We found that many such funds are falling short of investors’ expectations, which could leave customers shocked by the companies and industries they are unknowingly backing,” said Jenny Ross, Which? Money editor.

Loose, non-statutory definitions of terms like ‘environmental’ and ‘damage’ leave funds a lot of wiggle room. But regulators are clamping down. On 31 May, the Financial Conduct Authority (FCA) ‘anti-greenwashing’ rule comes into effect, banning funds from using language like ‘sustainable’, ‘green’, or ‘responsible’ without justifying them. In the spring budget, the Treasury promised regulations for ESG rating bodies, initiating a year of consultation to “improve clarity and trust”.

The Big Exchange is already “genuine and authentic”, said Goodall, and enacts an “extensive” due diligence process. “You have to be able to measure out- comes. That’s key – we want to get rid of the wishy-washy, non-measurable labels,” she said. Funds are subject to assessment by an independent third party, which checks they align with the UN’s Sustainable Development Goals. Annual assessments follow each year.

“Other investment platforms will want to know whether that fund will sell. At the Big Exchange, impact is the other thing that’s looked for,” Goodall says. “What is the problem that they’re trying to solve? Are they trying to solve world poverty? Are they trying to solve responsible product and consumption?”

Ethical investing is not just for the super-rich, or for people with time to monitor the financial markets. You don’t have to be some philanthropically minded Wolf of Wall Street to get started – The Big Exchange “democratises” investing, Goodall says.

Please remember that when investing, making money is not guaranteed and your capital is at risk. The value of your fund can go down as well as up. Tax treatment depends on an individual’s circumstances and may be subject to change. The Big Exchange (TBF) Limited is an Appointed Representative of Resolution Compliance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 574048) (8501).

Learn more about how to become a positive impact investor here.

A recent poll from King’s College London caused quite a stir when it found that half of Brits believe young people cannot afford to get on the property ladder because “they spend too much of their income on things like takeaway coffees, food, mobile phones, subscription services like Netflix and holidays abroad”. 

Ask any young person – or anybody with any common sense – you’ll find out that the notion is nonsense. 

People in this country don’t tend to talk much about money. A third of us are too uncomfortable to chat about it, a fifth have never discussed finances with friends or family, and 61% of women feel more comfortable discussing their own death than their bank balance.  

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“Speaking about money can feel awkward wherever you are on the wealth spectrum,” says Zoe Brett, a financial planner at EQ Investors. “The wealthy see talking about wealth as classless and those on the other end of the spectrum can be filled with shame and feelings of failure. Then there’s everyone in between bombarded by social media telling them they need this or that to be better accepted, that they’re not good enough if they’re not eating here or travelling there. No matter how much we accumulate or spend, we’re told it’s not enough.” 

A new TikTok trend is challenging this view, with those supposedly irresponsible young people leading the change. The term ‘loud budgeting’ is helping people stick to their budgets when facing pressure to spend on unwanted items or experiences, offering an awkwardness-free way to shut down plans you don’t want to spend money on.  

The ‘loud’ part is important. Voicing personal spending boundaries, which differ from one person to the next, helps you spend more intentionally. For example, you may shut down plans for a fancy dinner to use that money on smaller fun things throughout the week like a nice coffee and sweet treat, removing the guilt from those costs older generations have consistently blamed for GenZ’s lack of funds.  

“I used it the other day,” a friend told me. “Someone invited me out but it’s nearly payday and I’m in the red. I didn’t want to say I couldn’t afford it and I’d usually make up a lie to save face. Instead I said, ‘I can’t today, I’m loud budgeting’ and we planned something cheaper to do together so I wouldn’t miss out. I felt so much better after opening up.” 

Not missing out is a vital part of loud budgeting. While the trend promotes living within your means, it also encourages people not to deny themselves. While we can’t all live a luxurious lifestyle, we can better allocate funds and spend, or not spend, more intentionally to bring affordable treats into the everyday guilt-free. While some may think GenZ’s £286 average yearly spend on coffees is what’s stopping them from buying homes, loud budgeting isn’t asking them to give it up if they don’t want to, but instead save that amount by cutting an equivalent, unnecessary cost that wouldn’t make them as happy as those coffees – like a couple of nights out for a friend of a friends birthday or a new plant you know will be dead in a week. 

“In many ways, loud budgeting is common sense but in today’s world of immediate gratification and social pressure, it’s fair to say it’s a bit on the radical side,” admits Brett. “It takes strength and confidence to go against the crowd. That position of power over your money can change life as you know it forever.” 

• How can you cope with money worries in the cost of living crisis? We asked experts at leading mental health charities
• Building financial confidence: how to talk money with kids

Brett isn’t exaggerating. Our approach to money has a huge impact on our lives and loud budgeting is a trend reacting to a huge problem. The Campaign Against Living Miserably’s 2024 Money Talks Report found that 8 in 10 people are worried about money, but a whopping 75% haven’t spoken to anyone about how they’re feeling. But that doesn’t mean they don’t want to. Society may have made talking about finances taboo, but those within society now realise just how detrimental keeping quiet about it is.

The same report found one in two people wish the stigma of talking about money didn’t exist and one in three think opening up about money would improve their mental health. Thankfully, three in four people also said they would listen if a friend opened up to them about money and two in three said they would even be glad if a friend confided in them over money struggles.  

It shows a need for the openness loud budgeting is promoting, but experts believe it will take more for the younger generations to break the taboo set in place by those who’ve come before them. “There is a general openness in talking about finances among the younger generation,” says financial expert Dr Nisha Prakash of the University of East London.

“Unfortunately, most of these conversations are focused on savings, planning and meeting financial goals and people who are currently struggling still hesitate to voice their concerns. They might rely on social media platforms to understand what people do in similar situations but, with social pressure to spend, GenZ is still largely uncomfortable discussing financial struggles.” 

This is why loud budgeting, with its ease of use and lack of awkwardness, is important, says Dr Prakash. As well as encouraging conversation, she sees loud budgeting and other financial online trends as vital in teaching younger generations about financial literacy and in giving them the tools to open up about struggles.

Joe, whose named has been changed to protect his privacy, is one of the nearly 80% of GenZers and millennials who say they rely on social media for financial advice. He says learnt everything he knows about finances from TikTok and relies on trends like loud budgeting to teach him what he says he never learnt at school. 

“I wasn’t taught anything about managing money at school or home. It’s important life advice so I assumed everyone but me knew it. I searched it out online because I was too scared to ask friends, though I know now they didn’t have a clue either. I shared what I found with friends and we have a more open approach to speaking about money now TikTok has opened the discussion for us.” 

This article is taken from The Big Issue magazine, which exists to give homeless, long-term unemployed and marginalised people the opportunity to earn an income. To support our work buy a copy!

If you cannot reach your local vendor, you can still click HERE to subscribe to The Big Issue today or give a gift subscription to a friend or family member. You can also purchase one-off issues from The Big Issue Shop or The Big Issue app, available now from the App Store or Google Play

If you are facing debt, it is so important to get advice to manage it. There is a way out of debt and plenty of avenues you can take to get support.

Debt can be overwhelming and it can impact your mental health, making it even harder to handle your finances. There is also stigma around debt and it can take courage to ask for help, but that first step could just be a lifeline.

You are far from alone if you are experiencing debt. A record 6.7 million people in the UK have fallen behind on bills in the last six months as the cost of living crisis continues to hit households, new research from Debt Justice found.

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A debt advisor can help you access support like the government’s Breathing Space scheme which gives temporary protection from your creditors while you get advice and make a plan.

They can also create a budget and plan to manage your debt, or advise you as to whether you might be eligible for a Debt Relief Order or whether you should declare bankruptcy.

It’s worth contacting whichever companies or institutions you are in debt to first because they have an obligation to support you. That might mean lowered monthly payments, a payment plan, grants or putting you in touch with a specialist team if you are disabled or vulnerable. 

Below, we’ve rounded up a range of debt advice services, charities and organisations which might be able to help you with any money worries.

StepChange

The cost of living crisis can mean debts rack up, and things feel unmanageable. StepChange is the UK’s largest debt charity and it can give you advice on managing debt, as well as pointing you towards any help you’re entitled to.

The charity provides confidential and free expert advice on debt, as well as tips on budgeting, financial advice, and ways to prioritise your debts. There are a range of schemes and arrangements available, depending on your situation.

Its website can be found here. You can fill its online questionnaire to start with to get suggestions as to what steps you can take next.

National Debtline

National Debtline is a national charity providing free, impartial, expert debt advice to more than 100,000 people each year. Call National Debtline for free on 0808 808 4000.

If you just have a one-off question, or need emergency advice, you can chat live with one of their advisers between Monday to Friday 9am to 8pm and on Saturdays 9.30am to 1pm.

Or if you prefer to do things online, their Digital Advice Tool is available 24/7.

It also has a cost of living hub with plenty of advice and support.

Business Debtline

Business Debtline is the UK’s only free dedicated debt advice service for people who are self-employed and other small business owners.

It can be reached on 08001976026 Monday to Friday 9am to 8pm or via webchat from 9am to 5pm.

Mental Health & Money Advice

Financial struggles are a common cause of stress and other mental health problems, with the cost of living crisis making that ever-more widespread. It explains some of your options for managing debt, while its cost of living hub provides practical tips to lessen the strain of the crisis and maintain your mental wellbeing.

PayPlan

PayPlan helps people who have multiple debts. Its aim is to “reduce the amount you pay to your lenders and incre

ase the money you have to spend on yourself and your family so you can live comfortably”.

You can get in touch via telephone, live chat or WhatsApp, whichever works best for you. The advisor will help you make a new, simple budget that shows what you’re spending each month, and offer solutions to help you deal with the debt based around this budget.

Citizens Advice

Citizens Advice offers information and services to help people and they can advise you as to what financial support is available to help you. It offers phone and webchat services.

They have plenty of information around support for debt and money available on their website here.

Help Through Hardship

Run by Citizens Advice and the Trussell Trust, which runs a network of food banks, Help Through Hardship is a free, confidential helpline. It can be reached on 08082082138, and is open from 9am to 5pm, Monday to Friday. The helpline is aimed at helping those struggling to pay for essential items such as toiletries or food. Within its first year, the helpline answered 30,000 calls and helped feed 15,000 children.

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MoneyHelper

Run by the government, MoneyHelper provides advice on a range of money-related issues.

For example, it offers guidance to help you through the often-stressful situation of talking to a creditor about money you owe them. These conversations can help improve your situation and can lead to more flexible payment arrangements.

And if you’re using credit, there’s also advice on how to use it wisely. More and more people are turning to Buy Now Pay Later agreements as the cost of living crisis bites. MoneyHelper’s service offers advice if you’re using Buy Now Pay Later to pay for essentials such as food.

MoneyPlus Advice

MoneyPlus Advice is another debt advice service which offers support to people who get in touch. To get started, you can complete their quick enquiry online or use their online advice service to review all the solutions that could work for you and then get set up on a plan. 

Debt Advice Foundation

Debt Advice Foundation is a registered national debt advice charity offering free, confidential support and advice to anyone worried about loans, credit and debt.

If you need to talk to someone in confidence about your options, there’s no need to book an appointment. Its free debt advice helpline is open Monday to Friday 8am to 6pm on 08000434050.

There’s also plenty of advice available on its website.

Do you have a story to tell or opinions to share about this? We want to hear from you. Get in touch and tell us more.

If there was any doubt whether money mattered when it comes to ending homelessness, just ask Lee. The former chef doesn’t believe he would be alive today if it wasn’t for the power of social impact investing. 

The rigours of life in the hospitality industry saw Lee walk away from it all: swapping kitchens for camping in the woods at the age of 41 to escape the rat race and 60-hour working weeks. 

He was homeless through choice up until June 2020 when he contracted peripheral neuropathy ataxia, a condition affecting co-ordination, balance and speech, and that meant that he had to head indoors for good. 

But moving out of street homelessness only compounded Lee’s problems. Life in between countless shared accommodation and hostels took its toll on him and he turned to drink to cope, sending his health into rapid decline. 

“I came from a professional background and living the free life and then I was just in a really grotty, filthy house surrounded by complete and utter fucking chaos, absolute hell,” he tells Big Issue. 

“I was turning to alcohol to relieve myself from the anxiety and the stress of living there. I was getting myself into a worse physical condition because of the alcohol but it was my only way of coping at the time. 

“My drinking was getting bloody serious. I was in intensive care six times and had over 20 hospital admissions in two and a half years. That was all due to the housing they put me in, like a hostile environment. This is what needs to be seriously addressed because I believe everybody in this world is entitled to somewhere safe to live.” 

The relentless pattern of being hospitalised, discharged, placed in more unsuitable accommodation and drinking himself back into hospital ended in May 2022. 

This time when he was told he was being discharged into emergency accommodation he said no. “I told them: ‘I don’t know about you guys but I’m starting to see a pattern emerging. Just listen to me’,” says Lee. 

He was placed in a one-bedroom self-contained apartment in Bristol for two months before social impact investing paved the way for him to move into the flat he has called home for the last 18 months. 

Lee was housed through a homelessness property fund. The fund operates by attracting capital from institutional investors such as pension funds to acquire properties, refurbish them to a high standard and then lease them to homelessness charities and housing associations. 

Big Society Capital (BSC) – one of the UK’s biggest social impact investors – launched research with the help of Alma Economics last week into how the funding has impacted the housing crisis. 

The study looked at five funds managed by social property fund manager Resonance encompassing more than 1,000 properties. It found social impact investing has kept 3,300 people, including 1,607 children, facing homelessness out of temporary accommodation. 

The model has saved the taxpayer £140 million on temporary accommodation in the last decade – a sizeable benefit at a time when the cost of these properties is threatening to overwhelm councils. 

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The gains also extend to mental health and criminal justice services and, as Lee demonstrates, other homelessness costs on healthcare. 

Providing safe accommodation alongside wraparound care delivers an estimated £17,500 in wellbeing benefits per person, the study found.  

The homelessness property funds also turbocharge government investment. BSC found reallocating existing housing investment from the Department for Levelling Up, Housing and Communities in 2021 and 2022 into homelessness property funds leveraged additional funding from investors to multiply the impact of government spending. 

Big Issue Invest, the Big Issue’s social investment arm, is also a social impact investor and has invested over £80m in more than 550 organisations aimed at unlocking opportunity for people affected by poverty – including those at risk of homelessness. For example it runs a £10m ‘‘London Affordable Housing Programme’ which is supported by the Greater London Authority and aims to support housing associations and charities in providing new affordable housing in London.

Big Issue Invest has also recently launched a new £20m fund (‘Social Impact Debt Fund IV’) which supports charities, social enterprises and mission-driven businesses across the UK to increase the supply of affordable housing and improve its quality, including wrap-around support. 

Now, BSC wants the government to utilise the model even more. The investor estimates that pouring a £100m government grant in could quadruple its projected impact over the next decade. That could catalyse an additional £650m from investors and house 23,750 people while generating £1.1 billion in savings on homelessness for the taxpayer. 

Gemma Bourne, managing director at Big Society Capital says: “The alarming reality is that vulnerable individuals and families are enduring substandard living conditions in temporary accommodation. This is not good for them and it puts a heavy financial toll on local authorities, pushing them dangerously towards bankruptcy. It also underscores a glaring shortage in social and affordable housing – with research showing that £16.9bn will be needed every year to address undersupply. 

“Our report demonstrates a solution which has now existed for over a decade – but for it to adequately address the challenge at hand, we need government to act now to actively crowd in further investment.” 

Homelessness property funds have already made a big difference for people like Lee, who celebrated his 50th birthday earlier this month. 

Having a stable base and wraparound support has enabled him to keep out of hospital and even rekindle his love of cooking now he is living in a place with a kitchen to himself. 

“The reality of my situation is that if I didn’t have this I don’t think I’d be here today and that is not being dramatic – what I went through to get here was awful and I wouldn’t wish it on anybody,” he says. 

“I’m a lot healthier now. I’m not drinking excessively to the point of the brink of death so it’s all positive and it’s just been amazing. 

“I’ve got an absolutely lovely flat in a lovely area and I know all my neighbours. When I look out my window I’m not looking at concrete, I’m looking at a park. It’s really helped me so much to calm down, find my feet again and regroup my life. 

“I eat really healthy food now – having my own kitchen has just been massive for me really.” 

Are you a charity, social enterprise or mission-driven business focused on tackling homelessness in the UK seeking funding to provide housing? Apply for Big Issue Invest’s Social Impact Debt Fund IV now.

This article is taken from The Big Issue magazine, which exists to give homeless, long-term unemployed and marginalised people the opportunity to earn an income. To support our work buy a copy!

If you cannot reach your local vendor, you can still click HERE to subscribe to The Big Issue today or give a gift subscription to a friend or family member. You can also purchase one-off issues from The Big Issue Shop or The Big Issue app, available now from the App Store or Google Play

Businesses play a huge role in all our daily lives. They provide the goods and services that we rely on, and they pay the wages we need to purchase them. In turn, citizens wield power over these businesses – every time we move jobs, save, spend money or recommend products, the influence of our collective choices can determine the fortune of a business.

Despite this, most people won’t feel business is there to serve us or nurture the communities and environments that we value. Indeed, far from expecting business to do the right thing, when we read the headlines, it’s hard to see business as anything other than a problem. Instead of contributing to solving the issues of climate breakdown and social inequality, business is often the main character in stories without happy endings.

… ‘Business as usual’ is failing us. This is not what we want, and businesses know it’s not what we want.

And the reminders keep coming. Take the Post Office, which prioritised the needs of its main shareholder (the government) at the expense of its employees. Then there’s P&O firing 800 employees and BP and Shell failing to meet climate pledges. Examples such as these show that ‘business as usual’ is failing us. This is not what we want, and businesses know it’s not what we want.

So more and more businesses are making promises. They may be promises about a specific product, or simply be promises to care. This intention should be applauded. Not only are they attempts to do better, but they mirror a reflection of what we all want – a shift in culture to a world where business plays a more positive role in our society.

The question we must all answer is how to translate this desire, and our influence as employees, consumers, savers and investors, into deliberate and informed action. And the first step in this journey is to understand which businesses really mean it. How do we identify the businesses that really care, those that are walking the talk when it comes to positive impact?

There are now over 8,000 B Corps spread across 92 countries – and the UK has one of the largest and fastest-growing communities of B Corps in the world with 1,900 certified businesses.

That’s where B Corps come in. B Corps are businesses that balance purpose with profit. They are certified for having a positive impact on their employees, customers, local communities and the environment. This doesn’t mean B Corps are perfect – no business has no negative impacts – but by committing to continuous improvement and recertifying against B Lab’s evolving standards every three years, they are striving to make progress on the journey to redefining business norms. B Corps are held accountable to this by the fact each one is required to change their legal articles – also known as their corporate governance – so that an expanded duty of care to consider the interests of all stakeholders is embedded in decision making.

There are now over 8,000 B Corps spread across 92 countries – and the UK has one of the largest and fastest-growing communities of B Corps in the world with 1,900 certified businesses. B Corps you might have heard of include Ton’y Chocolate, Patagonia, Jude’s Ice Cream, Emma Bridgewater, Finisterre, and Chloé. You can get to know some others in the B Corp community on the following pages. B Corp Month is a moment to celebrate these businesses. Every March, the global B Corp community comes together to tell the world about their successes, failures, ideas and inspiration on the journey to better business.

Under the campaign theme “This Way Forward” B Corps will mark the month by highlighting how they’re continuously improving to create more inclusive workplaces, deliver more ambitious climate strategies, and respond to the world’s ever-changing issues.

And we’ve seen some brilliant examples of B Corps doing just that. Whether it’s Faith in Nature or House of Hackney appointing Mother Nature to their board of directors, Ace & Tate taking accountability for their mishaps on the journey to purpose-led business or ADLIB Recruitment drastically increasing their B Corp score at recertification by introducing an initiative to ensure the tech industry is inclusive to working mothers and women, it is these stories and actions that remind us why the change we are creating is so meaningful, and so needed.

B Corp Certification isn’t a destination. It’s just the beginning. We’ll never stop looking for new ways to grow our impact.

B Corp Certification isn’t a destination. It’s just the beginning. We’ll never stop looking for new ways to grow our impact. For us, there’s one direction and one direction only. And that’s forward. We want every business to step up and become a part of the solution. That’s why we’re campaigning for the Better Business Act – a change to the Companies Act that would see all businesses in the UK align their interests with those of wider society and the environment.

So use B Corp Month as an opportunity to look for and engage with businesses that are demonstrating an authentic and meaningful commitment to improve. By supporting B Corps, you are calling for the change you want to see in the world; one in which we hold businesses to a higher bar of accountability for their impact. You are paving the way towards a kinder economy one purchase, job application, and investment at a time.

The Big Issue is proud to introduce Pocket Money, our mini-magazine especially created for eight- to 14-year-olds that’s included free with this week’s magazine.

Produced in collaboration with The Week Junior, whose new issue out this Friday (March 8) also includes a free copy, it is aimed at children aged eight to 14.

The free mini-mag aims to enhance youngsters’ (and grown-ups!) understanding of financial matters, as part of our Big Issue Talks Money series. 

It’s filled with insights on saving, earning, and investing for kids – breaking down financial concepts into easily digestible information, and encouraging youngsters to explore the value of money management. 

A group of 10-year-olds who run their own successful social enterprises share their business secrets and advice on how to budget so that you can create a big social impact (Jeremy Hunt should take note!).

Why money matters, where it comes from, how you can save and grow it, and how to spend it wisely are among the big issues it tackles in easy terms. And there’s an interview with Kalpana Fitzpatrick, financial expert and author of children’s book Get to Know Money. Plus a quiz and budgeting tools to help young people get money smart.

Distributed with this week’s Big Issue and through The Week Junior and Social Enterprise Academy, Pocket Money supports our commitment to empowering the next generation with essential life skills, backed by Experian’s United For Financial Health Programme. 

Download your free copy of Pocket Money here and check out our practical advice, real-life scenarios, and interactive content to help young readers develop a savvy approach to handling their finances.