Rise of the 'white-collar tramp'

By Sarah Bell
BBC News

The plight of a former ITN newsreader who crashed from earning £100,000 a year to living rough on a seafront bench has challenged the perception of who can become homeless.

Ed Mitchell, 54, once enjoyed the trappings of a high-flying media career, but spiralling debts, bankruptcy and divorce caused him to hit rock bottom.

He says he represents a growing number of "white-collar tramps" - middle class professionals who are in financial crisis.

"I went from earning £100,000 to zero. I didn't want to claim benefits partly out of personal pride. I didn't have great debts but they spiralled out of control," he said.

"The 21st Century is seeing more and more white-collar workers in my position: people who are professionally experienced and talented who have found themselves in serious debt."

'No safety net'

With personal debt soaring and growing fears of a housing crash, it's a fate which a growing number of people could suffer.

Homeless charity Crisis says a quarter of people using their services had both a stable domestic and work life prior to becoming homeless.

A survey found one in five people describe their housing situation as "unpredictable", saying it would only take a month for it to be affected if their income suddenly changed.

Duncan Shrubsole, director of policy and research at the charity, said: "The scary thing is that if things do go wrong, there is not a safety net for everyone.

"Unless you have children you are unlikely to be entitled to emergency accommodation."

It can take a lot of getting over the stiff upper lip, people don't like to ask for help Jonathan Welfare Elizabeth Finn Care

The phenomenon of the middle classes falling on hard times has a historical precedent.

Late Victorian England suffered a recession which left many in the emerging professional class penniless, with nowhere to turn.

Elizabeth Finn founded the Distressed Gentlefolk's Aid Association, now named Elizabeth Finn Care, to plug the gap with grants.

"It helps people who hit one of life's pits and falls in, and need a hand to get out," chief executive Jonathan Welfare explained.

The charity supports 2,500 people each year, spending £4m in weekly payments and one-off grants.

The number of people asking for help is growing by 15% each year but many people don't approach the charity until their situation is dire.

Unclaimed money

Mr Welfare said: "We have tales of people who have waited five years before coming to us. It can take a lot of getting over pride and the stiff upper lip, people don't like to ask for help."

And many do not know where to turn when this time comes.

Mr Welfare says there is a treasure trove of unclaimed money because people don't know how to get help.

The government is hoarding £9bn of unclaimed benefits and many professional bodies have charitable funds which are rarely touched, he says.

To help solve this anomaly the charity has set up another project called "turn2us", a searchable database which details where money is available.

A person simply types in their details - for example if they were an accountant living in Wigan and suffered from diabetes - and it shows who to approach for help.

Mr Welfare has this message to anyone who is suffering: "Don't feel embarrassed, don't hesitate to turn to us, the system is anonymous."