Debt news in 2023
18 stories, newest first.
- November 2023
Welsh council leaders commit to accredited enforcement firms only
All council leaders in Wales have committed to using only accredited enforcement firms to collect Council Tax, making Wales the first UK nation to do so, according to the Welsh Government.
- October 2023
Help to Repay findings published
The Money Advice Trust has published findings from October 2023 showing 6.4 million UK adults behind on energy bills, and is leading a coalition of charities calling for a temporary Help to Repay scheme.
Households in serious financial difficulty rise to 4.8 million
The number of UK households in serious financial difficulty rose from 2.8 million in October 2021 to 4.8 million in October 2023, according to a survey tracking household finances.
- June 2023
Cost of living increase remains most common reason for debt at 26%
The cost of living increase remained the most common reason for debt among new StepChange clients in June 2023 at 26%, down one point on May but eight points above June 2022.
Council tax and water arrears among clients rise to 33% and 23%
The share of StepChange clients behind on council tax rose to 33% and on water to 23% in June 2023, both up two percentage points on May and back to levels last seen in March.
FCA prohibits debt packager remuneration from debt solution providers
The Financial Conduct Authority has banned firms from taking commission, fees or other payment from debt solution providers for referrals, under a rule that took effect on 2 June 2023.
Mortgage Charter protection against quick eviction
Lenders covering 85% of the UK mortgage market have committed to a charter that stops them forcing borrowers out of their homes within a year of a first missed payment.
- May 2023
Cost of living increase remains most common reason for debt among StepChange clients
StepChange reports that a cost of living increase was the most common reason for debt among its clients in May 2023, cited by 27 per cent, up from 16 per cent a year earlier.
Dual fuel bill arrears among StepChange clients up six percentage points since January 2023
StepChange reports that 57% of clients responsible for dual fuel bills were in arrears in May 2023, six percentage points above both January 2023 and May 2022.
Survey finds 44% of UK adults struggling with bills and credit commitments
StepChange says 44% of UK adults found it difficult to keep up with household bills and credit commitments in May 2023, and 8% met its definition of severe problem debt.
- March 2023
Welsh Government publishes evaluation of removing imprisonment sanction for Council Tax non-payment in Wales
Welsh Government research published on 8 March 2023 finds higher Council Tax collection rates in Wales than England and Scotland after the imprisonment sanction for non-payment was removed.
Debt adviser redundancies increasingly likely at Citizens Advice
A leaked Citizens Advice e-mail says a recruitment freeze has failed to deliver the savings needed, making compulsory redundancies of debt advisers increasingly likely as Money and Pensions Service funding falls.
StepChange advises 17,267 new debt advice clients in March 2023
StepChange advised 17,267 new debt advice clients in March 2023, 7% more than in February 2023 and 15% more than a year earlier, with 26% citing the cost of living as their main reason for debt.
- February 2023
NatWest extends repayment period for customers missing several payments on unsecured debt
NatWest is extending the repayment period for customers who have missed several payments on an unsecured debt such as a loan or overdraft from 18 to 24 months, from February 2023.
StepChange reports 16,076 new debt advice clients in February 2023, up 19% year on year
StepChange advised 16,076 new clients in February 2023, 19% more than a year earlier, with a record share citing a cost of living increase as their main reason for debt.
- January 2023
Ofgem prepayment meter review leads to compensation and debt write-off
Ofgem's compliance review found prepayment meters were wrongly installed at eight suppliers between 1 January 2022 and 31 January 2023, leaving affected customers due automatic compensation and, for some, debt write-off.
New agency set up to regulate bailiffs and debt collection enforcement
A new body, the Enforcement Conduct Board, is reported as the first independent regulator for debt collection in the UK, covering bailiffs and enforcement agents.
Scottish Government publishes summary of responses to statutory debt solutions and diligence policy review consultation
The Scottish Government has published responses to its review of statutory debt solutions and diligence, showing majority support for most proposals but weaker backing for the Standard Financial Statement and full surplus income in bankruptcy.