The British Retail Consortium predicts that the new 20% VAT rate will have a knock-on effect for those working in the retail sector, whose jobs will be at risk.

Higher VAT means higher prices, and demand for goods and services will drop. Companies will have to cut costs and employ fewer people to keep trading.

Many people working in retail are on low incomes and already struggle with debt.

Households with incomes of less than £20,000 spend, on average, over £100 more than they earn each month.

Job losses in the retail sector will leave many without the ability to repay their debts. This could lead to an explosion of personal insolvency in the retail profession.

What can you do?

We urge anyone working in the retail sector and worried about debt to seek help now. The most important thing is to tackle your debt problem before it gets any worse.

CCS can help by providing free, practical, confidential advice. We can identify the most appropriate solution for your situation.

For example, if a debt management plan is suitable for your circumstances, we can approach your creditors, and set up payment plans that will allow you to pay back your debts in a manageable way.