Debt news: page 3
- May 2023
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.
- 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.