Debt news in 2026
13 stories, newest first.
- 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.