Debt news in 2022
28 stories, newest first.
- December 2022
Negative budget share reaches highest point of 2022
The share of StepChange debt advice clients with a negative budget rose two percentage points to 35% in December 2022, the highest level recorded by the charity that year.
Suppliers reduce pre-payment debt repayment maximum from 40% to 20%
Electricity and gas suppliers have cut the maximum share of a pre-payment meter top-up that can be taken to repay debt from 40% to 20%, under a voluntary charter running to 31 March 2023.
- October 2022
Government energy bills support scheme launched at the beginning of October 2022
The government energy bills support scheme began in October 2022, and StepChange recorded a 34% rise in visits to its page on government help with gas and electricity bills between September and October.
- September 2022
Cost of living increase becomes most cited reason for debt among StepChange clients
StepChange says 22% of clients who sought debt advice in September 2022 named a cost of living increase as their main reason for debt, the most cited cause.
Impossible choices briefing published
The Money Advice Trust has published a briefing calling on the Government and regulators to uprate benefits, support people in arrears and introduce a social tariff for energy.
- August 2022
Scottish Government opens consultation on reforms to statutory debt solutions and diligence
The Scottish Government has opened a consultation on reforms to Scotland's statutory debt solutions and debt recovery mechanisms, responding to recommendations from stakeholder-led policy reviews.
CfRC and Debt Justice publish joint response to SDRP consultation
The Centre for Responsible Credit and Debt Justice have jointly responded to HM Treasury's consultation on Statutory Debt Repayment Plans, calling for debts sold to collection agencies to be written down.
Cost of living becomes most cited reason for debt
The cost of living became the most cited main reason for debt among new clients of the charity StepChange in August 2022, at 22%, after three consecutive months of two percentage point increases.
- July 2022
Cost of living becomes most common reason for debt among StepChange new clients
One in five new StepChange debt advice clients in July 2022 cited the rising cost of living as the reason for their debt, the charity's monthly client data shows.
Personal insolvency framework review call for evidence opens
The Insolvency Service opened a call for evidence in July 2022 as part of its review of the personal insolvency framework, asking whether existing statutory debt relief processes are fit for purpose.
- June 2022
Cost of living becomes most cited reason for debt among StepChange new clients
An increase in the cost of living became the most cited reason for debt among new StepChange clients in June 2022, at 18%, up from 7% in September 2021.
FCA sends Dear CEO letter to more than 3,500 retail lending firms on supporting customers in financial difficulty
The Financial Conduct Authority wrote to more than 3,500 retail lending firms in June 2022 setting out its expectation that they support customers in financial difficulty, including those affected by the rising cost of living.
- May 2022
Government publishes Statutory Debt Repayment Plan consultation
The government has published its consultation on the Statutory Debt Repayment Plan, a new statutory repayment scheme for England and Wales, with responses due by 5 August 2022.
Post-consultation draft SDRP regulations published
The Treasury has published draft regulations for a statutory debt repayment plan scheme in England and Wales, setting out eligibility, a 10 year repayment limit and a 2024 start date.
Cost of living becomes second most commonly cited reason for debt among StepChange clients
StepChange reports that an increase in the cost of living became the second most commonly cited reason for debt among its new clients in May 2022, behind lack of control of finances.
Draft SDRP Regulations published post-consultation
The Treasury has published a post-consultation draft of the Statutory Debt Repayment Plan regulations for England and Wales, setting a ten-year repayment limit and a bar on fees charged to debtors.
Visits to Government energy bill help page rose 54% between April and May 2022
StepChange reports visits to its page on Government help with energy bills rose 54 per cent between April and May 2022, which it suggests may be an early sign of the energy price cap rise.
- April 2022
DWP stops fuel deductions from benefits
The Department for Work and Pensions stopped taking deductions from benefits for ongoing fuel consumption on 26 April 2022, with an exception where a claimant requests one.
SDRP consultation opens on draft regulations
The government has opened a consultation on draft regulations for a statutory debt repayment plan, a new repayment-based debt solution for England and Wales, running until 5 August 2022.
Cost of living increase becomes second most cited reason for debt among StepChange clients
StepChange's April 2022 monthly client data shows 15% of new clients cited a cost of living increase among their main reasons for debt, up from 7% in September 2021.
New debt packaging rules could come into force
The Financial Conduct Authority has proposed banning referral fees for debt packagers, with new rules expected to come into force in April 2022 subject to a consultation that closed in December 2021.
DWP requires consent for new or increased Fuel Direct deductions for ongoing energy costs
From 1 April 2022 the Department for Work and Pensions will only agree to new or increased deductions for ongoing energy costs from benefits where the customer gives consent.
Negative budgets among new StepChange clients rose to 32%
StepChange's April 2022 client data shows 32% of new debt advice clients were in a negative budget, up from 29% a year earlier, with cost of living cited by 15%.
- March 2022
Cost of living rises among most cited reasons for debt among StepChange new clients
StepChange said 13% of new clients in March 2022 named the increased cost of living as a main reason for debt, up from 7% in September 2021, as negative budgets also rose.
Negative budget clients reach highest proportion in six months
StepChange reports that 33% of new clients in March 2022 had a negative budget, the highest share in six months and up four percentage points from January, as cost of living pressures grow.
Social Justice and Social Security Committee publishes findings on low income and problem debt
The Scottish Parliament's Social Justice and Social Security Committee has called on the Scottish Government to move quickly on a mental health moratorium for people in problem debt, as ministers prepare enabling legislation.
- February 2022
DWP updates staff guidance on waiving overpayment recovery
The Department for Work and Pensions updated its staff guidance in February 2022 on when to waive recovery of benefit overpayments, adding factors to consider but limiting waiver to severe welfare cases.
Negative budgets among new clients reach a 12-month high
StepChange says 32% of new clients had a negative budget when they received debt advice in February 2022, the highest share in the previous 12 months.