Survey finds 44% of UK adults struggling with bills and credit commitments

In May 2023, 44% of UK adults reported finding it difficult to keep up with household bills and credit commitments, while 8% met StepChange's definition of severe problem debt, the debt charity said in its response to a Financial Conduct Authority consultation on support for borrowers in financial difficulty¹.

The consultation covers "changes to rules and guidance designed to ensure regulated financial services firms better support customers facing payment difficulties"¹. StepChange said it welcomed the FCA's proposals to bring key elements of the Tailored Support Guidance into FCA rules and guidance, but added that it was "disappointed the proposals focus narrowly on transposing and updating elements of the TSG and do not incorporate important learning from the impact of payment deferrals"¹. It also said the proposals "are not yet fully aligned with the Duty", referring to the Consumer Duty¹.

The charity set out figures on how quickly people seek help and on borrowing used to cover existing commitments:

StepChange described "safety net" borrowing as using credit to keep up with bills and existing credit commitments, which it said leads to poor outcomes¹. It said that not accessing help, accessing it too late or receiving poor support lengthens and deepens financial difficulties, leaves customers with fewer options and causes worse outcomes and additional harm¹. It also cited research commissioned by the FCA showing that the extent and effectiveness of creditor support for those struggling with debt repayments is variable¹.

The charity said an effective strategy must be cross-cutting and listed areas it said should be addressed: firms developing evidence- and data-driven early intervention strategies; a simple, clear offer of help to engage struggling consumers; changes to credit information so firms can identify difficulty promptly and consumers are not disproportionately punished for seeking help; targeted changes to rules and guidance on revolving credit; and an effective compliance and enforcement strategy¹.

Why it matters for households

The figures describe how many households were already behind on bills and credit in May 2023, and how many the charity classifies as being in severe problem debt. For anyone in that position, the consultation concerns the rules firms follow when a customer contacts them about payment difficulties, including how forbearance and repayment agreements are agreed¹. StepChange's evidence suggests timing matters: half of the clients it surveyed said they had been in difficulty for more than a year before they got debt advice¹. The charity's own view is that the FCA's proposals do not yet go far enough, so the level of protection a borrower receives may still depend on which firm they deal with, given the FCA-commissioned research finding variable creditor support¹. Our debt guide sets out the options and rights that apply to people dealing with problem debt.

What happens next

The FCA consulted on the changes, and StepChange has published its response¹. The sources do not state when the FCA will publish final rules or what the timetable is; that has not been reported¹.