Shelter finds that 37% of working families in England could not cover housing costs for more than a month in event of job loss

More than one in three families in England are a monthly pay packet away from losing their homes, according to research by Shelter highlighting how many households have almost no savings.

The housing charity found that 37% of working families would be unable to cover their housing costs for more than a month if one partner lost their job.

The findings mirror government figures, which show that there are 16.5 million working age adults in the UK with no savings.

Campbell Robb, the chief executive of Shelter, said: “These figures are a stark reminder that sky-high housing costs are leaving millions of working families stretched to breaking point and barely scraping by from one paycheque to the next.

“Any one of us could hit a bump along life’s road, and at Shelter, we speak to parents every day who, after losing their job or seeing their hours cut, are terrified of losing the roof over their children’s heads too.”

The charity is calling for an improved welfare safety net to prevent families where someone loses a job from “hurtling towards homelessness”.

The phenomenon of the working poor, those earning a regular salary, but living from one paycheque to the next with no savings to speak of, is a widespread feature in English-speaking western economies such as the UK, Canada, the US and Australia.

An annual survey by US website Bankrate found that 63% of Americans have no emergency savings for necessities such as a $1,000 (£770) emergency room visit or a $500 car repair. Most turn to credit cards when financial disaster looms.

According to the US Federal Reserve board, 47% of Americans would have trouble finding $400 for an emergency expense.

Writing in the Atlantic about the “secret shame” of middle-class Americans, the author Neal Gabler said he shared their difficulties, juggling creditors to make it through the week.



“I know what it is like to dread going to the mailbox, because there will always be new bills to pay, but seldom a check with which to pay them,” he wrote.

Martin Lewis of MoneySavingExpert.com says in his book The Money Diet: “In truth we should all have three to six months’ income saved away, so that we’re ready for any emergency”.

But he acknowledges that this is easier said than done. Many savings accounts pay virtually zero interest after the Bank of England cut the base rate to 0.25% last week.

Losing a job and relationship breakdown are among the chief reasons for households falling into serious debt.

Shelter cites the example of Lou, who wished to remain anonymous, and her two children. They began to struggle financially after she separated from her partner a couple of years ago. Lou works full time as a complex needs carer and has moved into a small flat, but finds keeping up with the rent every month a struggle.



“I couldn’t afford to buy my son a proper birthday present this year,” she said. “I felt awful about it, but I don’t think you should hide everything from your children. You don’t want to expose them to too much, but at the same time if you simply can’t afford things, you have to explain that to them.

“I’m working hard, but it still makes me feel like a failure. I recently changed jobs and hit a rough patch when I thought I wouldn’t be able to pay the rent. An employer had given me some work and didn’t tell me that my hours wouldn’t be guaranteed. I lost a chunk of my income all of a sudden and very nearly lost my home. It was really scary.

“There’s never a cushion. You’d think if you were working, you’d be able to save a little bit every month, but it’s just not a possibility when paying for the basics is so expensive.”

Anyone worried about losing their home can contact Shelter for free expert advice. Visit www.shelter.org.uk/advice or call the Shelter helpline on 0808-800 4444