Debts set to hit £60,000

THE average debt for each household in the UK is set to pass £60,000 in the next two years and be higher than the Treasury originally predicted.

The increase has raised concerns that the government is allowing ordinary taxpayers to take on high levels of debt as it tries to slash its own budget deficit of 155 billion by more than 100bn. The Treasury had predicted household debt would rise by 42bn in two years, about the amount cut from the government's spending.

But the Office of Budget Responsibility said the actual increase was likely to be 3bn more at 45bn. This would leave a total debt of 1564bn among the 26 million households in the UK.