Nationwide, the UK's largest building society with branches in Birmingham, has issued a stark warning that approximately half of low-income families could face additional debt and hardship as the school safety net ends for the summer holidays. New polling commissioned by the mutual reveals the urgent crisis confronting families on Universal Credit.
Key Findings from the Poll
The research, which surveyed 2,000 parents with school-age children on Universal Credit across the UK, found that two in three parents are concerned about paying essential bills, childcare costs, or children's activities this summer. Around half are likely to resort to payday loans, extend an overdraft, or sell possessions to cover costs, the building society reported.
Additionally, the poll indicated that low-income families could be forced into drastic actions: 50% may delay paying rent or mortgage payments, while 63% might use Buy Now Pay Later schemes to manage expenses.
Expert Reactions
Catherine Joyce, National Director for England North at Action for Children, commented: "Our front-line services see the impossible choices families face across the UK every day, and while summer is a vital time for play and adventure the pressure of costs intensify for families. How can we expect a child to enjoy their holidays with families concerned about paying for their next meal, let alone enriching activities?"
She added: "This tough reality means support like our summer programme of Family Clubs are more vital than ever. They offer a local lifeline of access to enjoyable playtime, a hot meal, and chance to build some supportive networks for parents and children. Our message to the new Prime Minister is clear: tackling the cost-of-living crisis for children and families must be a priority. The Great British Summer savings scheme is welcome, but we must see further targeted support for low-income families already struggling with rising costs and affordability. Summer should be a carefree time of exploring for children; it is these foundations which have a lifelong impact on children’s learning, development, confidence and friendships."
Gemma Bird, Action for Children supporter and personal finance influencer, remarked: "Without the safety net of school, families are suddenly faced with six weeks of extra food costs, childcare and finding ways to keep the kids entertained. With household budgets already stretched, many parents are making impossible choices to cover the essentials, and some are getting into debt to put food on the table and cover bills. It's heartbreaking."
She offered practical advice: "There are ways to make the summer holidays more affordable. Check local community noticeboards and social media groups, as lots of free activities aren't widely advertised. Getting together with other parents in the playground for toy swaps is a great way to keep kids entertained with something new, while a trip to the library can make story time feel exciting without spending a penny. Most importantly, don't struggle in silence. Check what financial help you could be entitled to by using a free online tool, such as the Nationwide Better Off benefits indicator. So many families are missing out on support simply because they don't realise what help is out there."
Impact and Call for Action
The findings underscore the severe financial strain on low-income families during the summer months when school-based support—such as free meals and childcare—is unavailable. Nationwide's warning highlights the need for increased government intervention and community support to prevent families from falling into debt.
