Debt news
97 stories on debt, newest first. Every story is dated and cites its sources.
- August 2026
Almost half of councils increase bailiff use as council tax arrears hit £7.4bn
The Money Advice Trust says almost half of councils increased their use of bailiffs while council tax arrears reached £7.4bn, and it is calling for a new approach in England.
Citizens Advice warns over a third of Brits worried about affording energy bills this winter
Citizens Advice research published on 26 August 2026 finds 37% of Britons, over 10 million households, worried about affording energy bills this winter, with 3.5 million households in energy debt.
- July 2026
StepChange calls for stronger credit card consumer protections
StepChange Debt Charity has published a report on the credit card regulatory framework, calling for earlier lender intervention, stronger affordability checks and higher minimum repayments as polling shows 15% of UK adults struggle with repayments.
- June 2026
Consultation on tackling lower value tax debts opens
HMRC has opened a consultation on extending its existing powers to recover lower value tax debts through direct monthly deductions from people who persistently do not engage with it.
Breathing Space registrations fall 41% year on year
Breathing Space registrations fell 41% year on year to 4,495 in June 2026, the Insolvency Service said, while individual insolvencies in England and Wales rose 16% over the same period.
Market engagement to begin on recommissioning of national debt advice services
The Money and Pensions Service will start market engagement on recommissioning its national telephone and digital debt advice contracts from early summer 2026, alongside a new community-based grant scheme.
- May 2026
Renters' Rights Act increases ground 8 arrears threshold
From 1 May 2026 private landlords in England need three months of unpaid rent before using ground 8 to evict, up from two months under the Renters' Rights Act.
- April 2026
NI Executive agrees in principle to extend Breathing Space to Northern Ireland via UK statutory instrument
The Northern Ireland Executive has agreed in principle to extend statutory Breathing Space debt protections to Northern Ireland through a UK statutory instrument, withdrawing the separate Debt Respite Bill.
Maximum UC debt deduction amounts updated for April 2026
Shelter has published the maximum amounts that can be deducted from Universal Credit standard allowance for debt from April 2026, with limits ranging from £51 to £100 a month by claim type.
New council tax collection rules come into force in Wales
Households in Wales now have 63 days to deal with a missed council tax instalment before enforcement action, replacing a minimum of 14 days under rules that took effect on 1 April 2026.
Surplus earnings figures for 2026/27 set out
Turn2us has published the Universal Credit element amounts, work allowances and thresholds used to calculate surplus earnings for 2026/27, setting out how earlier months of earnings can reduce or stop payments.
- January 2026
Breathing Space registrations fall 39% year on year
Breathing Space registrations fell 39% year on year to 5,008 in January 2026, the Insolvency Service has said, after the largest money advisor group changed its eligibility and suitability criteria.
Debt charities report unprecedented demand after Christmas
Major debt charities reported unprecedented numbers of people seeking help with debts in early January 2026, as a survey found over 4 million UK households in serious financial difficulties.
- November 2025
Government accepts key recommendations of Sayce review on Carer's Allowance overpayments
The government has accepted key recommendations of the Sayce review into Carer's Allowance overpayments, with most affected carers to have their cases reassessed automatically and repayments potentially refunded.
StepChange updated its Breathing Space suitability criteria, reducing registrations
StepChange changed its Breathing Space suitability criteria in November 2025, and Insolvency Service figures show registrations for the debt respite scheme running well below year-earlier levels through 2026.
- October 2025
NAO publishes value for money report on DWP's tackling of benefit overpayments due to fraud and error
The National Audit Office says benefit overpayment levels remain too high but improved in 2024-25, and that the Department for Work and Pensions must now turn its strategy into effective implementation.
HMRC restarts taking tax debts directly from bank accounts
HMRC has relaunched its Direct Recovery of Debts power, allowing it to take unpaid tax directly from bank accounts and cash Isas in a test and learn phase after pandemic suspension.
- September 2025
DWP reassessing Carer's Allowance overpayments from 2015 to 2025
The Department for Work and Pensions is reassessing Carer's Allowance overpayments made between 10 April 2015 and 2 September 2025, with affected claimants possibly due a refund or a reduced or cancelled debt.
Average household bill arrears 10% higher than a year earlier
Average household bill arrears among new StepChange clients reached £4,447 in September 2025, 10% higher than the £4,059 recorded a year earlier, the debt charity's monthly client data shows.
Fuel and electricity arrears rose in September 2025
StepChange reports that 46% of clients responsible for dual fuel bills were in arrears in September 2025, with electricity arrears at 29% and average household bill arrears at £4,447.
Personal loan debt among StepChange clients up three percentage points year on year
Half of StepChange clients who sought debt advice in September 2025 were in debt because of personal loans, up from 47% in September 2024, as average household bill arrears rose 10% to £4,447.
- August 2025
Reports of fake HMCTS debt collection letters spike
Which? has reported a spike in fake debt collection letters claiming to come from HM Courts & Tribunals Service, alongside cold calls from fraudsters posing as debt advisers.
- July 2025
Reimagining Insolvency report launched
The Money Advice Trust has published Reimagining Insolvency, a report proposing a single, flexible insolvency framework for England and Wales with two routes out of problem debt.
- June 2025
DWP to reassess Carer's Allowance overpayment cases after review found it acted unfairly
The DWP will reassess Carer's Allowance overpayments made between April 2015 and September 2025, after an independent review found it acted unfairly, with debts reduced, cancelled or refunded.
- May 2025
New Consumer Energy Debt Advice service announced
A new Consumer Energy Debt Advice service led by Citizens Advice with the Money Advice Trust and StepChange will help clients resolve energy debt problems and access energy efficiency schemes.
- April 2025
Welsh Government opens consultation on Council Tax administration and enforcement in Wales
The Welsh Government has opened a 12 week consultation on how unpaid Council Tax is collected in Wales, proposing changes to reminder notices, final notices and liability order timing.
Debt Rescue Scheme testing begins and Universal Credit data used for Council Tax reduction
The Welsh Government is testing a Debt Rescue Scheme in three areas and using Universal Credit data to help reduce Council Tax bills from April 2025.
DWP to check all Carer's Allowance overpayment alerts
From April 2025 the Department for Work and Pensions will check every Carer's Allowance overpayment alert it receives and investigate past overpayments, after years in which not all cases were reviewed.
Fair Repayment Rate introduced
The Fair Repayment Rate took effect in April 2025, cutting the maximum that can be deducted from a Universal Credit standard allowance for debt repayments from 25% to 15%.
- March 2025
Consultation on statutory debt solutions held
An independent review of Scotland's statutory debt solutions has published 52 recommendations after a March 2025 consultation, with the Scottish Government to respond after the Parliamentary Election.