A household that borrows to pay for food, heating or electricity has little room to absorb another setback. Research by Christians Against Poverty (CAP) shows how falling behind on essential bills can push people below the Minimum Income Standard, a measure of what households need for an acceptable living standard. Its Pushed under, pushed out report was published in March 2024, although the account quoted here was posted in September 2026.

That distinction matters because the problem has not arisen overnight. CAP found that 82% of people in the group it identified as having fallen behind on household bills were at risk of being below the Minimum Income Standard. It also found that, once debt reaches about a fifth of income, the risk of falling below that standard rises sharply. Job loss and ill health add to the danger.

What happens to people caught in this position? Governments usually speak of getting them back into work. But a job is useful only if its pay, hours and security allow someone to meet the cost of living. CAP’s more recent work argues for looking at the quality and sustainability of employment, as well as whether a person is recorded as employed.

Some people who cannot find secure employment may indeed become self-employed or start small businesses. A locality needs repairs, food production, cooking, care, maintenance and many other practical services. Someone with a skill and a few local customers may be able to earn a living from work that a large employer would never organise. As national growth weakens, such activity could become increasingly valuable.

But unemployment does not automatically create an entrepreneur. A person struggling with arrears may have no savings for tools, premises or a vehicle. They may be unable to risk an uncertain week’s takings. Their potential customers may be struggling too. Calling self-employment the answer without facing those obstacles would place yet another burden on people who already have too little.

Localism offers a more realistic possibility when it grows through practical support. Shared workshops and equipment can lower the cost of starting. Experienced tradespeople can pass on skills. Small firms can work together and refer customers to one another. Local buyers, including established businesses and public services, can give new enterprises a steadier flow of work. Debt advice and adequate income remain essential while people find their feet.

So, are those out of work bound for localism? Some may find a place in new local businesses, but they are not bound for self-employment simply because other work has disappeared. The measure of success is whether a locality can turn useful work into a dependable livelihood. If it cannot, a growing number of small businesses may merely disguise a growing number of people who still cannot afford the essentials.