The share of StepChange clients in receipt of Universal Credit rose to 41% in February 2025, the debt charity's monthly client data report shows. That is two percentage points higher than January 2025, when the figure was 39%, and four percentage points higher than February 2024, when it was 37%1.
The report covers 14,508 clients who first received debt advice in February 2025, a figure 12% lower than the 16,448 in the previous calendar month. StepChange said the fall was "in line with trends we see each year between January and February"1.
Other measures in the same report moved alongside the Universal Credit share. Three in ten clients (31%) were in a negative budget in February 2025, against 29% in January 2025. The proportion of clients in some form of employment was 59%, two percentage points lower than the 61% recorded in January 2025. One in seven clients (15%) cited unemployment or redundancy as their main reason for debt, two percentage points higher than the 13% recorded in February 20241.
StepChange also reported that arrears had risen for most household bills between January and February 2025. Among clients responsible for electricity, three in ten (30%) were behind on that bill in February 2025, three percentage points higher than the 27% in January1.
"Two in five (41%) clients were in receipt of Universal Credit in February 2025, which is two percentage points higher than January 2025 (39%) and four percentage points higher than February 2024 (37%)"
| Measure | February 2024 | January 2025 | February 2025 |
|---|---|---|---|
| Clients in receipt of Universal Credit | 37% | 39% | 41% |
| Clients in a negative budget | Not reported | 29% | 31% |
| Clients in some form of employment | Not reported | 61% | 59% |
| Clients citing unemployment or redundancy as main reason for debt | 13% | Not reported | 15% |
Why it matters for households
The figures describe a group of people who have already sought debt advice, not the population as a whole, so they do not show how many UK households receive Universal Credit overall. What they show is that within this group, the proportion relying on the benefit has climbed across a year, and that a larger share were spending more than they received in February 2025 than in January.
For households on Universal Credit, the amount received depends on earnings, savings and circumstances, and payments can be adjusted when wages change. The report does not break down which elements of Universal Credit clients received, such as the housing element or health element, and it does not say whether the rise reflects more claimants, more people moving across from legacy benefits, or a change in who approaches the charity for advice. None of that has been reported.
The report also does not give figures for Pension Credit or for other benefits, so no comparison across benefit types is possible from this data.
What happens next
StepChange publishes a client data report each month. The February 2025 report is the latest in the series, following the January 2025 edition1. No date has been given for the next release.
Sources1 cited
- Monthly Client Data Report. February 2025. StepChange stepchange.org
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