Rishi Sunak Slammed By Statistics Watchdog Over Misleading Debt Claims

Rishi Sunak has been slammed by the UK statistics watchdog for wrongly claiming that government debt is falling.

The prime minister made that one of his five pledges to voters at the start of the year.

He claimed in a social media video, and also in the House of Commons, that debt was falling.

But Sir Robert Chote, chair of the UK Statistics Authority, said that was misleading.

In a letter to Lib Dem Treasury spokesperson Sarah Olney, he said Sunak’s office said the claims referred to the Office for Budget Responsibility’s forecast that net debt would be falling as a proportion of GDP in the final year of its five year forecast.

Sir Robert said: “The average person in the street would… likely have assumed that he was claiming that debt was already falling or that the government’s policy decisions had lowered it at the fiscal events – neither of which is the case.’

He added: “This has clearly been a source of confusion and may have undermined trust in the government’s use of statistics and quantitative analysis in this area.”

Sarah Olney said: “Rishi Sunak knows he has no good story to tell on the UK economy so he has resorted to making one up.

“The least this no-growth Prime Minister could do is be honest about it with the British public.

“Instead, he has reached for the Boris Johnson playbook and is undermining trust in politics. This is desperate stuff from a desperate prime minister and it is right that he has been called out on it.

“Rather than using smoke and mirrors to cover up his own failings, Rishi Sunak needs to come forward with a real strategy to rebuild the economy after the Conservative Party crashed it.”

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This Is How Much Debt Maternity Leave Is Putting Women In

Babies can come at the most surprising moments in life. And for many people, they arrive at a point where your personal finances aren’t at their strongest.

In fact, some women entering maternity leave are doing so without any savings at all.

Reduced pay during this time coupled with the costs of a newborn means many mums have to borrow money to get by. And some are being left in debt.

A study of parents by finance company Credit Karma found that a quarter of parents get into maternity leave without any money saved, while 26% of women get into debt while on their maternity leave.

The amount in borrowing has increased by £560 since 2018, the company says, taking the average borrowed per parent up to £2,800.

Those with student loans face the harshest outcomes as the interest rate on those loans remains seriously high while they are on leave and unable to pay it off.

Credit Karma said women with interest loans accrue an average of £1,770 loan interest in just six months of leave.

Given the cost of living crisis, which is seeing bills go up as never before, this paints a dire picture for new parents.

Akansha Nath, head of partnerships at Credit Karma UK said: “Women are often disadvantaged financially throughout their life, and the responsibility to give birth plays a huge role in this gender disparity.

“At a time when the cost of living is affecting most people, and every penny counts, it’s more important than ever that women take advantage of any support available to them.”

These debts, even if eventually paid off, can then follow women into life, affecting their credit score and therefore their ability to buy homes and other goods.

Credit Karma said maternity-affected credit scores can set women back an average £17,000 in interest over the course of their lifetimes.

If you are struggling with maternity debt, there are resources that can help.

Step Change has a benefit checker, as well as list of grants available to expectant parents. The website also offers free money management tools designed to help people with their finances, without judgement.

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Tips For Creating A Budget With Emilie Bellet From Vestpod

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