Gillian Guy, Chief Executive of Citizens Advice, addressed an audience at the Resolution Foundation to launch a new report on Squeezed Britain. She said:
"It is very likely that the worst is yet to come. Right now Britain faces seven years of public service cuts and a low growth economy.
"Politicians need to look at the cumulative impact of multiple cuts and economic stagnation. The people Citizens Advice bureaux see every day live with low wages in unstable employment, high rent in an immobile housing market, a shrinking state safety net and an advice sector more in demand than ever.
"It only takes a small financial shock like a washing machine breaking down or a large winter fuel bill to tip many families over the edge. Citizens Advice bureaux see 8,000 new problems with debt every day and have seen a ten-fold increase in the number of people seeking support with a payday loan.
"Without a concerted effort and long-term vision from Government and employers, the only winners in the current economy will be loan sharks and bailiffs."