Vikki Brownridge, chief executive of debt charity StepChange, welcomes parts of the Renters’ Rights Act but urges the government to do more to prevent debt

Beth, from South Wales, came to us for debt advice while she was renting in the private sector and struggling with managing her budget. When she saw her income change after a life shock, she found herself unable to keep up with her rent and manage the regular payments. She said it got “progressively worse” and even “unmanageable” as she spent a “disproportionate” level of income on rent.

At last, the long-awaited reforms to improve the rights of tenants in the private rented sector are finally in force. At StepChange we’re pleased to see this, even though we know it won’t fully solve the affordability and other problems that private renters face.

The Renters’ Rights Act contains some fundamentally positive reforms, and policymakers deserve credit for following it through to implementation. The act’s key change is to abolish section 21 ‘no fault’ evictions. It will also limit rent increases to once a year and ban rental bidding wars. These are all helpful measures that should, over time, increase security and reduce the incidence that many of our clients have experienced of being forced to vacate a tenancy and then being unable to find an affordable, suitable replacement rental, which can contribute to the kind of extreme financial pressure that leads to problem debt.

But affordability remains a key concern. In many areas, private rents are higher relative to incomes than the housing costs of other tenures. This problem is only partially addressed. Affordability is one of the key reasons why there is such an over-representation of tenants among those who seek help from StepChange for problem debt.

It is noticeably more of an issue for private sector tenants than for StepChange clients living in any other form of housing tenure. Where one in five (19%) households in the UK are in the private rented sector, one in three (33%) StepChange clients are private renters. Most concerningly, for those clients behind on their rent, total arrears top £2,100.

Our client research shows that, among those who do get into arrears on their rent, the likelihood of an affordable repayment plan to clear the arrears is lower for private sector tenants than for those renting from social landlords. Only a third were asked about their income and expenditure by their landlord when seeking an arrears repayment plan, suggesting that affordability considerations were taken into account by only a minority of landlords.

It’s helpful that the guidance to the new act encourages landlords to adopt an affordability approach, but this would be strengthened by the introduction of a pre-action protocol for private landlords based on the existing protocol for social tenants, which would put more emphasis on landlords and tenants to come to a mutual, sustainable repayment agreement.

Affordability will remain a very real barrier to financial health for many private sector tenants, even after the enforcement of the reforms.

There is no obvious route to see how the basic supply-and-demand issues that dictate private sector rent affordability will properly ease, at least in the short term. Until that happens, it’s likely that the over-representation of private renters among our client base will continue, but at least the new act provides a significant modernisation of renting rights and marks a big step forward in addressing the balance of responsibilities between landlords and tenants.

Renters will keep falling into debt until there’s proper action to tackle affordability of homes was originally published in StepChange Debt Charity on Medium, where people are continuing the conversation by highlighting and responding to this story.

At StepChange, it is crucial that our policy and campaign work is rooted in the real experiences of our clients. Our debt advisors provide incredible insight into the reality of problem debt ‘on the ground’ each month through our internal Social Policy platform. This programme allows advisors to take the lead on insight generation. Simply put, advisors share what they’re seeing and learning from our clients.

We’re able to use these cases internally to improve the debt advice experience, our policy team embed them in calls for evidence and consultations, they are included in insight reports, and we discuss evidence directly with partner organisations.

Each month, I read through and analyse these anonymised cases. I’m often taken aback by the stark reality that I encounter. The heavy emotional weight of problem debt rings so clearly, and it’s a reminder of the essential role that advisors play in providing guidance through the most challenging times. These cases underline both the harm caused by some practices, and the difference that good support can make for those facing problem debt. Highlighted below are some of the key themes we frequently see submitted by advisors:

Enforcement and collection tactics can cause harm

“They have been threatening client into payment, even after client stating they are in hospital and are vulnerable they have told them they are taking their goods.”

StepChange has been using evidence and insight from advisors about bailiff issues to drive the charity’s campaign for change to enforcement practice for many years. It continues to be one of the most submitted areas of concern by StepChange advisors. Advisors commonly share that the stress of debts being progressed to enforcement is a huge burden, and the risk of incurring further costs weighs heavy on many clients’ minds. An advisor told us:

“Client was scared as had been told that [the Enforcement Agent] would be removing the door if [they] didn’t let them in and wasn’t sure what to do.”

We receive many cases where clients are unsure of their rights, and many struggle to advocate for themselves in such highly charged situations. The use of harsh language by some Enforcement Agents only adds to the pressure, with clients sometimes subjected to insults or personal attacks. This is particularly problematic for clients with additional vulnerabilities beyond their financial situation, who made up over half of StepChange’s new clients in 2025.[1]

At StepChange, we argue that punitive approaches to debt collection cause far greater harm than good. Efforts to claw back payments from clients with very little spare cash can feel inappropriate and ineffective. Our advisors tell us how many turn to our advice in desperate need of support regarding enforcement. Removing vehicles, for example, has left some unable to access basic needs. Many become fearful of answering the door or phone, causing significant disruption to their day-to-day lives.

Refusing offers and solutions leaves clients in despair

“They are taking payments directly from client’s wages and refusing to stop or pause deductions…”

It’s an inherently challenging time when clients reach out for debt advice. To make progress, you must share your personal circumstances so the budgeting and advice can be perfectly tailored to your individual situation. This requires clients to engage, spend time, and go through a lot of effort to reach the final recommended solutions that are right for them.

When a creditor decides to reject the offer or solution proposed, it’s therefore often incredibly stressful for clients. Many can’t understand why a tailored Debt Management Plan, payment suspension, or other solution is turned down when paired with a detailed budget outlining what they can reasonably afford. Here are two examples of insight submitted by advisors:

“…collections ignoring budget and token offers being sent, manipulating direct debits to the point of leaving client without food, and being very rude over the phone.”

“[Creditor] as a policy reject our proposals and will not accept DMP payments.”

These delays aren’t just inconvenient for clients, but risk further financial harm if problem debts aren’t managed swiftly. For example, while StepChange has built proactive and constructive relationships with many energy providers — engaging with them on referring their customers in financial difficulty — we still hear examples of unsustainable debt collection practices. This generates extra work for debt advice providers and inefficiencies for suppliers due to back and forth — while acting as a troubling hurdle on the road to people becoming debt-free.

To avoid this, it’s crucial for creditors to engage with the debt advice sector, to ensure harmonious processes that tackle debt head-on — with far more flexibility and empathy. Social Policy data is useful here, as it provides evidence directly to organisations about what’s working well and what isn’t.

Examples of good practice highlight how support is key

“Enforcement agent called at the client’s property today and was really professional and referred the client to ourselves.”

I’m very uplifted when I read cases that demonstrate genuine attentiveness and care from creditors and those working in collections or enforcement. Professionalism and understanding are key components in working with people facing problem debt.

“… the client felt that because the pressure was less he always answered the phone to them.”

“Given 3 months frozen interest/charges as well as no payments needed in that time … refund of £50 charges … and also some food voucher support to client as well.”

Reducing the pressure around debt repayments is key for better engagement from clients. Giving clients a pathway with clearly defined next steps is essential, especially as the broader aim is for building long-term financial resilience alongside a solution for their existing debt. When provided with this support, it’s clear from the cases we see at StepChange that clients can make real progress towards more stable financial positions.

We will continue to learn from the perspectives of our debt advisors on an ongoing basis. These insights demonstrate why change is crucial for those facing problem debt and highlight emerging issues affecting clients. By listening to frontline experiences here at StepChange, we can better advocate for improved practices that help to prevent harm rather than compound it.

[1] Statistics Yearbook 2025. StepChange Debt Charity. https://www.stepchange.org/policy-and-research/2025-personal-debt-statistics.aspx

Voices from the frontline highlight the reality of problem debt was originally published in StepChange Debt Charity on Medium, where people are continuing the conversation by highlighting and responding to this story.

Next week, the King will attend parliament to outline the government’s legislative agenda for the year ahead. Beneath all the pomp and pageantry, this is an important occasion carrying huge implications for those struggling financially.

Amid a backdrop of rising inflation, higher council tax, and families struggling with ever-increasing bills, StepChange wants to see a commitment to reforms which will protect vulnerable people from harmful debt collection practices. For decades, we have called for a statutory regulator for the bailiff sector to establish clear, enforceable standards and provide an independent complaints route if these are not met.

For too long, the lack of statutory regulation has allowed poor practice in the bailiff sector to persist. Bailiffs are instructed in more than seven million cases every year,[1] yet the enforcement industry remains out of step with similar sectors without a regulator backed by law. Instead, oversight relies on a patchwork of voluntary arrangements and non-binding guidance, leaving people in debt exposed when things go wrong.

As a debt advice charity, we see the consequences of this gap in regulation. Over half (53%) of our clients surveyed in 2024 who experienced bailiff action said bailiffs rejected affordable repayment offers, and a third (34%) surveyed said they used behaviour that felt intimidating or threatening. For people already facing financial hardship, bailiff action often entrenches debt problems rather than resolving them. The impact goes beyond finances: 95% of our clients surveyed who experienced bailiff action tell us it harmed their mental health, 94% said it disrupted sleep, and 91% said it affected how safe they felt in their own home.[2]

That is why we have long called for a statutory regulator for bailiffs, and why next week’s King’s Speech matters so much. The government has acknowledged the need for reform and expressed support for stronger oversight. With growing public concern about debt and rising living costs, the time is now to turn these commitments into action.

A statutory regulator would set clear, enforceable standards for both individual bailiffs and the firms that employ them. It would have the power to investigate poor practice, apply sanctions where necessary, and provide an independent route for complaints. Crucially, it would ensure that enforcement activity strikes the right balance between the need to recover debt and the need to treat people in financial difficulty fairly.

Importantly, this reform can be delivered at no cost to government, as the existing voluntary oversight body is industry funded. The Enforcement Conduct Board (ECB) itself has called for statutory regulation, recognising that voluntary oversight cannot close the gaps that currently allow poor practice to continue unchecked. There is also strong public backing for change: more than four in five UK adults say they support such a step.[3]

The government now has a clear opportunity to respond to this public concern and deliver meaningful protection for millions of people.

At a time when so many households are under financial strain, the case for a statutory bailiff regulator has never been stronger. The government must seize this moment and ensure that the enforcement system works for everyone, while protecting vulnerable people from harm.

[1] Enforcement Conduct Board, 2026 Insight Report, January 2026

[2] StepChange, Looking through the keyhole, October 2024

[3] YouGov polling commissioned by StepChange Debt Charity, fieldwork 19–20 January 2026, sample size 2,179 UK adults

The time is now to regulate bailiffs was originally published in StepChange Debt Charity on Medium, where people are continuing the conversation by highlighting and responding to this story.

We’ve just published our latest policy report, Plugging the gap: The case for national social tariffs in energy and water.

Tackling the cost of living pressures faced by British households was already high up on the political agenda at the start of this year. But this ambition has been brought into especially sharp focus in the last couple of months, as the domestic consequences of conflict in the Middle East begin to sink in for British households.

Coming against a backdrop of increasingly fragile financial resilience in recent years — whether stemming from the pandemic or the subsequent, sustained cost of living crisis — warnings of another potential increase in prices have understandably sparked fresh public fears.

This is borne out by our research. Polling commissioned by StepChange this April found that almost half (45%) of British adults are worried about their ability to pay their energy bills in the next six months — much higher than the three in ten (29%) worried in January.

The proportion worried about their ability to pay water bills in England and Wales has also grown since the start of the year, from one in five (20%) to three in ten (28%) — noting most Scottish households pay for water through their council tax bill.

These fears are caused by real affordability problems. Drawing on StepChange client data and stories, debt advisor focus groups, and nationally representative polling, our report sets out both why and to what extent clients are struggling to meet the costs of their energy and water bills — and how policymakers can act to prevent problem debt by plugging this affordability gap.

Firstly — who is behind on utility bills, and by how much?

Energy has become the most common type of household arrears StepChange clients face, with two in five (38%) in Britain behind. Average energy arrears per client have increased by over £1,000 — or 79% — in the last five years alone, to a new high of £2,455. Almost one in four (23%) StepChange clients in England and Wales have water arrears, at an average level of £1,326, having risen by 33% since 2021.

While debt can and does happen to anyone, our data shows that difficulty meeting essential household costs is not distributed equally. StepChange debt advice clients with energy and water arrears are disproportionately likely to be women, private or social renters, and single parents, compared to national averages and clients overall. These groups overlap in many cases — for example, women are much more likely to be single parents.

Our research also highlights the extra pressures that disabled people are under to make ends meet. For example, those receiving Disability Living Allowance or Personal Independence Payment face higher energy and water arrears on average, compared to those behind on these bills but not in receipt of these benefits.

One client told us: “I am disabled and rely on things like my stairlift to maintain independence. It got to the stage I was too worried about the utility bills that I often went without using my amenities and buying healthy foods as a way of cutting costs.”

Why do clients fall behind?

There are a number of structural factors driving difficulties meeting household costs, including barriers to accessing a stable income.

For example, StepChange debt advice clients with energy and water arrears are less likely than clients overall to be in paid employment, partially fuelled by more clients who are behind on these bills not working specifically due to illness or disability.

Disabled people and those with long-term health conditions can face extensive barriers relating to employment. The disability charity Scope describes how factors such as inaccessible interview tests and formats, inflexible working patterns and negative attitudes and discrimination make it harder for disabled people to find and stay in work.[i]

Another key consideration is that many households have watched their incomes falter while their utility costs have soared. In the 20 years from 2003–04 to 2023–24, the bottom 10% of incomes among working age adults only grew by a cumulative 0.5 per cent — compared to what the Resolution Foundation termed a ‘still meagre’ 7.7 per cent growth at the 75th percentile.[ii]

Meanwhile, average energy bills have risen by 44%, or £503, in the last five years from April 2021 to April 2026 — and costs look set to spike again from July this year. Not only this, but average annual water bills increased by over 50% — or £206.40 — between 2020/21 and 2025/26.

While difficulty paying utility bills is not purely a product of inadequate or stagnating incomes — with other challenges contributing to debt problems, including negative life events like a bereavement or sudden job loss — it is those with the lowest financial resilience that have borne the brunt of the turbulent last few years.

The impacts of struggling with the basics

Life and home are deeply intertwined. Struggling to afford household utility bills can lead to concerning coping actions — like reducing the number of showers or baths taken, putting off turning on the heating or going without meals to avoid cooking — which can degrade people’s health, happiness and sense of self-worth.

Research has also shown how, under conditions of scarcity, people tend to focus on the here and now and lose sight of what the future might hold — with a chronic lack of resources causing cognitive strain. This daily, grinding reality is articulated by one client, who told us her experience of falling behind on utility bills “caused so much anxiety and stress. I’m constantly worried and living on eggshells.”

These experiences have negative ramifications for wider society too. As well as contributing to mental health problems, as described above, difficulty affording utility bills — and at its worst, fuel or water poverty — can cause, or exacerbate, a range of physical health problems for those cutting back on usage. It can also contribute to educational disparities for children, as well as social isolation and reduced productivity.

How do we prevent this in the future?

Recent global events have demonstrated the importance of having responsive and flexible mechanisms in place to support low-income households struggling with the essentials. The Warm Home Discount scheme payment — introduced in 2011 as a single £120 sum paid in the winter intended to help those living in fuel poverty with their energy costs — has only increased by £30 over its lifetime, and by a minimal £10 since winter 2014/15. It goes without saying that increases in energy costs have far exceeded these changes.

Limited awareness of voluntary water social tariffs, meanwhile, is a blocker to ensuring eligible households receive the financial support they have a right to — with just three in ten (29%) adults in England and Wales aware of them — while individual providers’ offerings vary when it comes to both eligibility criteria and support amounts.

So StepChange wants to see targeted, enduring intervention which properly protects financially vulnerable consumers from unaffordable utility costs. Central and devolved Governments should work together to adopt the following recommendations at speed:

1. Transform the existing Warm Home Discount Scheme into a social tariff.

2. Introduce a single national social tariff across all water providers in England and Wales.

Five principles should guide the design of both energy and water social tariffs. Support should be:

· Effectively targeted, to make sure it reaches the right people.

· Provided automatically wherever possible, to guarantee high uptake.

· Tiered, to reduce the potential for steep cliff edges in eligibility.

· Enhanced, to tangibly ease low-income households’ bill burden.

· Mandatory for all providers, to prevent a postcode lottery of support.

If you want to learn more about our campaign to Plug the Gap in utility bill support, visit our website.

[i] Scope (2023), Understanding the challenges of disabled jobseekers and Scope (undated), Disabled employee retention

[ii] Resolution Foundation (2025), The bare necessities: Unpacking the rising cost of essentials for low-to-middle income Britain

At StepChange, the start of 2026 has seen exceptionally high demand for our services, reflecting the continued financial strain facing households across the UK. Q1 volumes, alongside unprecedented engagement in the very first week of January, underline both the scale of need and the critical role of free, accessible debt advice in the current climate.

A record-breaking start to the year

Demand surged immediately in early January. In the first week of the year alone, we saw a 17.3% increase in people seeking support compared with the same week in 2025 — volumes 5.6% higher than any week seen in the past 12 months.

Notably, on 5th January more people sought support than any single day in 2025, highlighting how quickly financial pressures intensified as people moved into a new year of ongoing uncertainty.

Digital engagement over the festive period also signaled how little respite many households experienced. Over 4,000 people visited the website on Christmas Day, followed by more than 15,000 visits across the New Year period — a stark reminder that financial distress does not pause for seasonal milestones.

Sustained high volumes across Q1

This exceptional start translated into consistently high volumes across Q1 2026:

• 1.44 million website visits, up 19% quarter-on-quarter, reflecting growing awareness and preference for online debt advice.
• Almost 50,000 clients advised overall, with 43,586 completing online with advisor support, a 27% increase compared to Q4 and 21% year-on-year growth.
• Continued high take-up of solutions, including 10,169 Debt Management Plans activated, up 8.6% on the previous quarter.

These figures demonstrate both the scale of financial difficulty and an increasing preference for digital-first support, allowing people to seek help quickly and privately as pressures mount.

Financial pressure is reshaping household behaviour

The data reflects a wider picture of sustained economic strain. Despite inflation easing from previous peaks, cost-of-living pressures remain, driven by essential costs such as housing, energy, food, and transport.

Ongoing geopolitical instability and its knock-on effects are further fueling economic uncertainty, contributing to heightened anxiety about household finances and future financial security.

Polling from the start of this year echoed this sentiment with four in ten UK adults expecting their finances to worsen in 2026, and it’s again reinforced by the sharp rise in usage of our benefits checker tool: 9,650 people completed the tool in Q1, a 23% increase on Q4 and 25% year on year

Nearly £1m in additional monthly income (£908,162) was identified for clients, up 34% quarter-on-quarter.

Impact at scale and growing need ahead

Behind these volumes is real, tangible impact. In Q1, we helped clients pay back £91.4m of debt, helping 3,731 people become debt free, despite the increasingly complex and stretched financial circumstances many face.

Together, these figures point to a clear conclusion: demand for debt advice is not only high but growing and becoming more needed than ever as consumers continue to struggle. As cost pressures persist and global events continue to drive economic uncertainty, more people are reaching a point where advice, reassurance, and practical solutions are an essential lifeline.

Why this matters for partners

These trends remind us of the importance of continued collaboration. At StepChange, our partners play a crucial role in ensuring that people in financial difficulty are identified early, signposted quickly, and supported effectively.

Q1 has shown that we’re operating at a significant scale, responding to both immediate spikes in need and longer-term structural pressures.

And, as we move through 2026, the data suggests this demand is unlikely to ease, making partnership, referral pathways, and shared commitment to customer outcomes more important than ever.

Across the debt advice sector and beyond, one debate continues to resurface: can organisations embrace digital transformation without sacrificing human touch?

It’s often framed as a trade-off. Go digital and you gain scale, speed and efficiency, but risk being impersonal. Stay human-led and you preserve empathy and trust, but struggle to meet demand or adapt to changing expectations. At StepChange, we’re looking at things differently.

The question we’re asking isn’t whether services should be digital or human; it’s where human expertise matters most and how we can build journeys that protect and strengthen that space. We’re asking how we can make human support more meaningful, more timely and more effective.

That sits at the heart of our strategy and is the driving force behind our outcome for 2030; digital first, data-led, powered by experts.

Digital isn’t the risk

The demand for debt advice, solutions, and financial support continues to grow, while the expectations of services are changing just as quickly. Many want support that feels accessible, intuitive and on their own terms — especially at moments of stress or vulnerability.

Digital channels meet that need well. They can lower barriers, reduce friction, and offer a sense of control at a time when life feels anything but predictable.

The danger comes when digital is treated as a blunt instrument, to simply standardise support, reduce cost or push people through a system more quickly. Even then, the risk isn’t being digital; it’s being generic in a world where people need tailored support.

Not every moment needs a human, but the right ones absolutely do

One of the hardest truths in an organisation like ours is that human support is both invaluable and finite.

We’re proud to be powered by experts. However, if that expertise is spread too thinly, across repetitive or highly administrative tasks, the moments that truly require judgement, empathy and experience are squeezed.

In our client journey, some moments are about clarity and progression while others are about reassurance, context, and trust. Treating those moments the same doesn’t create fairness; it creates friction. Recognising that difference allows us to build journeys that can adapt accordingly.

Designing around real lives, not ideal processes

People don’t experience financial difficulty in neat, linear ways. Often circumstances change, confidence fluctuates, and manageability wanes. Support services need to reflect the reality.

That means creating experiences that can flex, allowing people to move at their own pace, pause, seek help, and access deeper support when they need it. It also means recognising that, in some cases, the best outcome is helping someone reach the right help for their needs, even if it sits outside our organisation.

The future of support is less about channels and efficiencies and more about outcomes that genuinely improve people’s lives.

Why human expertise becomes more important

As services become more digital and routine steps are simplified, the conversations that remain are often the hardest ones with people in the most complex situations experiencing heightened emotions and competing pressures. These are the moments where experience, empathy, and professional judgement make the greatest impact.

The organisations that get digital transformation right will be the ones that use technology to create conditions for better, more accessible human support, not to replace it.

A new test for the future

As we look ahead, the questions we should be asking are:

• Does this service meet people where they are?
• Does it adapt to different needs and circumstances?
• Does it protect human experts for the moments that truly matter?

At StepChange, these questions are shaping how we think about the future of support. They will guide the changes we’ll share over the coming months as we continue to evolve our services to become more impactful than ever.

By Genevieve Richardson, Senior Public Policy Advocate

This time last year we published our policy report ‘Too close to home’, which explored StepChange’s debt advice clients’ experiences of coerced debt. It found that an estimated 1.6 million UK adults experienced coerced debt in the year ending November 2024.

One year on, we’ve conducted new research based on national polling specifically of victim-survivors, which digs deeper to explore the experiences of those affected and better understand the long-term financial impacts of coerced debt.

Key findings

Among the victim-survivors who responded to our survey:

1. As a result of their coerced debts, the vast majority (85%) reported experiencing at least one negative financial impact, such as going without essentials, using borrowing as a coping mechanism, and getting behind on loan repayments.
2. Around half (48%) experienced at least one negative impact on their credit record and over a third (35%) of respondents reported having been declined for at least one financial product or service, such as a loan or credit card, internet or mobile contract, or a tenancy, mortgage or job. This has worrying implications for financial inclusion for a group of people in incredibly vulnerable circumstances.
3. In spite of these negative financial and other impacts, almost three-quarters (70%) of respondents with coerced debts did not seek any help with their debts. Nearly half (45%) said that they did not seek support due to shame and embarrassment. This echoes another finding that around half (49%) did not immediately recognise the behaviour they experienced as wrong.
4. Under a third (28%) of respondents had at least one of their coerced debts written off in part or in full. This figure was significantly higher among men (45%) than women (11%).

Has anything changed?

Since we published ‘Too close to home’, important progress has been made. Two of the report’s key recommendations were around cross-government working and the co-ordination of a credit restoration and repair framework.

Last year, therefore, we were pleased to see the Financial Inclusion Strategy, published by HM Treasury, recognise economic abuse as a cross-cutting theme, with government support for cross-sector work with credit reference agencies to develop an approach to credit file restoration. The Violence Against Women and Girls Strategy made a similar pledge, so there are more encouraging signs of the Home Office and HM Treasury working together to tackle the multiple and interconnected barriers to economic justice for victim-survivors.

UK Finance also refreshed their Financial Abuse Code, and Surviving Economic Abuse, the UK’s only charity dedicated to transforming responses to economic abuse, published their ‘Good practice guidance for financial services’, which provide up-to-date guidance on how to treat victim-survivors who have experienced coerced debt.

But there remains work to be done.

Our findings paint a troubling picture of the experiences of the victim-survivors. The high levels of financial harm caused by coerced debt among the respondents, including long-term impacts through the effects of impaired credit files, which can cause not only financial exclusion but exclusion from vital services like housing, speak to the urgent need for effective financial and legal remedies that deliver economic justice.

That is why we’re calling on the Government, regulators and industry should strengthen and build on the direction of travel set out in the Financial Inclusion Strategy to embed the principle of economic justice in policy and regulation by:

• Developing definitions of coerced debt and economic justice to guide wider stakeholders.
• Setting out steps to work across departments to address legal and other barriers to economic justice.
• Extending the principle of economic justice to the public sector, working with departments and local authorities to ensure a consistent approach to coerced debt.
• Working with the Money and Pensions Service and the debt advice sector to develop and commission sufficient specialist advice, including training for non-specialist advisors to identify economic abuse, and support the continued roll out of the Economic Abuse Evidence Form, devised by Money Advice Plus and rolled out in partnership with Surviving Economic Abuse.
• Delivering an awareness-raising programme for economic abuse and coerced debt that ties in with the Violence Against Women and Girls Strategy (2025–2030).

We would also like the FCA to develop guidance for financial services on economic abuse and coerced debt, building on SEA’s ‘Good practice guide for financial services’ and UK Finance’s Financial Abuse Code of Practice. The guidance should address Consumer Duty obligations and economic abuse, clarify financial services’ scope and flexibility to separate joint debts safely, and provide clarity for the financial services sector on how coerced debts by fraud should be dealt with.

And, we would like UK regulators to coordinate through UKRN to agree principles to deliver a consistent cross-sector approach to coerced debt that supports economic justice, and ensure those principles translate into regulatory rules and guidance.

To tackle the long-term credit file impacts of coerced debt, the Government, credit information industry and stakeholders should work together, with:

• HM Treasury setting out clear expectations for the development of an effective credit information remedy and repair framework for victim-survivors by the end of 2026.
• The new Credit Information Governance Body prioritising the development of that framework.
• The Ministry of Justice and HM Courts & Tribunals Service working together to utilise existing processes to ensure that CCJs that arise in cases of economic abuse are removed from the Register of Judgments without any application fee.

What next?

Progress is moving in the right direction, with appetite across Government, as well as other key stakeholders, to make a difference. But we mustn’t lose momentum. HM Treasury and the Home Office have made promising commitments, but only with action will we see progress towards the economic justice victim-survivors need and deserve.

To read our new research in full, you can visit our website.

March 26th is Epilepsy Awareness Day which provides an opportunity to look beyond the clinical understanding of epilepsy and recognise the wider impact it has on people’s lives.

For many, epilepsy is seen as a condition defined by seizures, but the reality is far more complex because when your health becomes unpredictable, so could your income.

A condition that affects more than health

In the UK, around 600,000 people live with epilepsy, approximately 1 in 100. According to Epilepsy Action:

· Just 34–42% of people with epilepsy are in employment

· Many face barriers to entering or staying in work

· A significant proportion report discrimination or lack of understanding in the workplace

This creates a gap; not just in opportunity, but in financial stability.

When seizures disrupt income

Recently, I experienced two seizures. While what followed was recovery, it was mired with uncertainty. There are questions that many people with epilepsy face every day — is it safe for me to work? Do I need time off and can I afford it? How will this affect my role, my income, my future? For some, the impact is immediate and for others, it builds over time, but the outcome is often the same: financial pressure. I’ve been fortunate that StepChange has supported me through this period, reminding me how vital it is for people to feel understood and treated with care when their health affects their stability.

The link between epilepsy and financial difficulty

When employment becomes unstable, the knock-on effects can be severe:

· Reduced or lost income

· Difficulty meeting essential costs

· Increased reliance on credit

· Delays or challenges accessing benefits

Research and insight from Epilepsy Action highlights that over half of working-age people with epilepsy are economically inactive; however, this is not a reflection of ability, it reflects barriers — in workplaces, in systems, and in understanding. Often income drops and people are left with difficult choices.

From financial pressure to problem debt

At StepChange, we see every day how income shocks can lead to debt. For people living with epilepsy, this risk is heightened:

· Sudden loss of earnings after a seizure

· Ongoing health-related costs

· Inconsistent work patterns

· Limited financial resilience

Without the right support, these pressures can escalate quickly into problem debt which itself can worsen stress and mental health, creating a cycle that’s difficult to break.

The role of employers and support systems

Many of these outcomes are preventable. With the right workplace support, people with epilepsy can and do thrive. Simple adjustments can make a significant difference:

· Flexible working arrangements

· Clear understanding of seizure management

· Open, stigma-free conversations

But too often, support is inconsistent or absent altogether.

Why awareness matters

Epilepsy Awareness Day on March 26th is a chance to challenge misconceptions; the most common one being that epilepsy is just about seizures. In reality, it’s about confidence, independence and financial security — and without the right understanding, people risk losing all three.

A call to action

If we want to reduce financial harm linked to health conditions like epilepsy, we need to:

· Improve awareness in workplaces

· Strengthen financial safety nets

· Ensure access to debt advice early

· Create systems that recognise fluctuating health conditions

At StepChange, we believe that no one should face problem debt alone, especially when it stems from circumstances beyond their control.

Final reflection

Experiencing seizures has changed how I think about stability. It’s made clear how quickly things can shift and how important the right support is when they do. For the hundreds of thousands of people in the UK living with epilepsy, this is a challenge they face every day and that deserves understanding — not just medically, but financially too.

Epilepsy, Employment and Debt: The Hidden Financial Impact of a Health Condition was originally published in StepChange Debt Charity on Medium, where people are continuing the conversation by highlighting and responding to this story.

Last week, we published our latest Statistics Yearbook which details the complex picture of problem debt in the UK. This report provides essential insight into the broad reach of financial vulnerability and illuminates how struggles with personal finance and debt impact widely. Our annual publication explores the debt and demographic situation of clients who fully completed their very first debt advice session between January and December 2025.

Over 160,000 clients completed first-time debt advice in 2025, equal to about 450 people per day. Whilst demand is slightly lower than in previous years, it remains clear that the urgent need for debt advice remains incredibly high overall. To keep pace with a rapidly changing debt advice landscape, StepChange launched our 2025–2030 strategy, which sets out how we will continue to adapt to support people who need our help.

Building awareness and reducing debt stigma is one of StepChange’s strategic pillars. The insights compiled in The Statistics Yearbook demonstrate that this mission is relevant to everyone — the nature of debt results in it being cross-cutting. With our latest polling[1] showing that around two in five (38%) UK adults are struggling to keep up with their bills, it’s essential that we continue to recognise the sobering breadth of financial vulnerability. The following findings from the report help to highlight just how complex this issue remains:

1. Clients are facing deeper household bills arrears

Despite the proportion of clients in household arrears[2] falling from 47% in 2024 to 44% in 2025, the amount owed has increased substantially. Average household arrears levels have increased by 11% overall, with the biggest increase seen in mortgage arrears — rising 22% to £12,534. For renters, arrears have deepened: the average amount of rent arrears amongst new clients has risen from £2,055 in 2024, to £2,372 in 2025. Those in energy arrears are also facing a higher level of indebtedness, with average arrears climbing from £2,340 in 2024, to £2,560 in 2025.

These findings paint a stark picture — clients are falling into significant debt through falling behind on essential bills, meaning they are simply struggling to make ends meet.

We are campaigning for the introduction of national social tariffs in energy and water alongside extra help for those struggling with household bills like housing and council tax, and for a less punitive and more supportive approach to debt collection, which considers the complex circumstances and structural conditions that drive people into debt. It is even more critical that reforms to raise standards of debt collection are brought to the heart of the legislative agenda.

2. Problem debt impacts some families more

Problem debt shouldn’t be the expected reality for any family, and yet our findings show that some are disproportionately likely to face financial difficulty. Through our insights, we can identify some risk factors to falling in problem debt, that reflect persistent gaps in financial support. The largest family demographic amongst our clients is those that are single without children. In 2025, this group made up over two in five (41%) clients. This is two percentage points higher than 2024. This group is also overrepresented compared to their proportion in the UK population[3] This includes the following bill types: dual fuel, electricity, gas, council tax, water, rent, mortgage, TV licence, and ground rent/service charges, where they make up 36%.

Further, single parents continue to be overrepresented in StepChange’s client base. Our 2021 report The single parent debt trap demonstrated the structural failures impacting the personal finances of single parents. In 2025, these issues persist, with single parents accounting for around one in four (26%) of StepChange’s client base versus the UK population, where they account for one in 14 (7%) households. Whilst November’s announcement of the abolition of the two-child benefit cap in April 2026 is welcome, looking forward, single parents need further assistance beyond this to increase income and bring down the cost of basics to ensure they are supported to make ends meet and able to build financial resilience.

3. Job market woes are impacting clients’ financial stability

Our findings from 2025 show two concerning developments in the relationship between employment and problem debt. The first is a gradual rise in ‘unemployment or redundancy’ as a main reason for debt. This has risen for two consecutive years, from 13% in 2023, to 15% in 2025.

One in eight (12%)[4] clients reported their employment status as ‘unemployed: looking for work’ in 2025, up from 11% in 2024. With news of continued instability in the job market, it is crucial that support structures are in place for those who are unemployed or facing unemployment. At StepChange, we see a steady increase in new clients who are Universal Credit claimants, up three percentage points in two years (2023 = 37%, 2025 = 40%), suggesting current welfare approaches aren’t enough to safeguard many from financial vulnerability.

The second is the reality that employment is not preventing many from facing problem debt. The majority of StepChange clients are in some form of employment — three in five (60%) in 2025. The number of clients in full-time employment continues to grow steadily year-on-year, increasing from 42% in 2023, to 43% in 2024, to 44% in 2025. Our client insights report In work. But still in debt. demonstrated the inadequacy of existing safety nets in preventing in-work indebtedness.

These findings point to the complexity of debt and how far reaching it is. StepChange continues to work towards a society free from problem debt and by helping those in debt get back on their feet. To achieve this, we will continue to champion all that is best in free debt advice.

References

[1] YouGov polling surveyed a sample of 2,179 UK adults between 19th-20th January 2026. The survey was carried out online and the figures have been weighted to be representative of the profile of all UK adults.

[2] This includes the following bill types: dual fuel, electricity, gas, council tax, water, rent, mortgage, TV licence, and ground rent/service charges

[3] Office for National Statistics, Families and Households 2025, https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/families/datasets/familiesandhouseholdsfamiliesandhouseholds

[4] Office for National Statistics (ONS), released 20 January 2026, ONS website, statistical bulletin, UK Labour Market January 2026

Statistics Yearbook 2025: new insights on debt in the UK was originally published in StepChange Debt Charity on Medium, where people are continuing the conversation by highlighting and responding to this story.

Last week, the Insolvency Service released its 2025 Individual Voluntary Arrangement (IVA) Outcome and Providers data, including the latest breakdown of provider activity and longterm outcomes across the market. Yet again, as has been the case for several years, the picture remains troubling — raising persistent questions about how well the IVA market is working for people in financial difficulty.

In this article, we outline how StepChange Voluntary Arrangements (StepChange VA) compares with sector performance, why we believe current regulatory safeguards fall short of what consumers need, and what must change to ensure people are protected.

Why we continue to publish our IVA performance data

Four years ago, we committed to publishing detailed performance data for StepChange VA because transparency matters — especially in a market where it is in short supply. We are doing so again now. Our hope was, and still is, that other firms would follow suit. To date, many still have not.

As a charity offering a wide range of debt solutions, our advice is always centred on good, long-term client outcomes. StepChange VA, our dedicated subsidiary, only supports clients who have been recommended an IVA through our impartial debt advice process.

Although StepChange VA represents a modest share of the overall market, our performance continues to contrast sharply with wider industry outcomes.

What the latest Insolvency Service data shows

The Insolvency Service’s 2025 statistics highlight several notable trends:

• 71,855 IVAs were registered in 2025, an increase from 67,089 in 2024 but still below the record highs seen between 2019 and 2022.
• Lifetime termination remains high for earlier cohorts, with approximately one in three IVAs (34%) registered between 2016 and 2018 failing before completion.
• While IVAs registered between 2019 and 2021 appear to have lower lifetime termination rates — likely influenced by temporary COVID support measures — more than 70% of IVAs from 2022 onward were still active at the end of 2025, making longer-term trends harder to confirm.

Taken together, this is far from a reassuring picture, particularly when compared with StepChange’s termination rates.

How StepChange VA compares with the sector

Industry termination rates remain a major concern. While specific firm-level outcomes are not published by the Insolvency Service, the sector-wide trends make one thing clear: far too many IVAs are still failing.

Early termination is especially damaging. An IVA delivers its intended benefit only if it reaches completion, as it is at the end of the usual five-to-six-year term that remaining unsecured debt is written off. When an IVA fails, clients lose the legal protections they relied upon, and many will have paid substantial fees despite making little progress with their debts.

Against this backdrop, the contrast between StepChange VA’s performance and the industry average remains stark. Our termination rates are consistently far lower than the market’s — and our completion rates considerably higher. This disparity has persisted for years and cannot reasonably be explained by chance alone.

So why is our experience so different?

Why our outcomes diverge from the wider IVA market

Several factors likely contribute:

While our overall caseload is comparatively small, the repeated pattern of significantly stronger outcomes over multiple years shows the difference is structural, not statistical.

StepChange VA only takes cases that we have assessed as suitable, sustainable, and in the client’s best interests. Robust checks help ensure that clients entering an IVA are positioned to complete it successfully. When circumstances change, we intervene early — renegotiating with creditors wherever possible.

Weak regulation enables poor practice elsewhere

Despite improvements in the regulatory landscape — such as the 2024–25 ban on debt-packager referral fees and clearer take-on requirements through updated protocols — the system still leaves room for firms that prioritise revenue over consumer need.

Recent years have seen widespread poor take-on practices, inadequate affordability assessments, high-pressure sales tactics and, in some cases, the mis-selling of IVAs to people for whom they were never suitable.

What needs to change

The 2025 Insolvency Service data once again expose the fragility of the IVA market and the persistent risk to consumers navigating it. While there are signs of improvement in the early-year termination data, long-term failure rates remain unacceptably high — and the underlying causes have not gone away.

We will continue publishing our own data because transparency is vital. But ultimately, it is stronger regulation, more consistent standards, and better protection at the point of entry that will ensure IVAs fulfil their intended purpose: helping people out of problem debt, not deepening it.

What the latest Insolvency Service data tells us about IVAs was originally published in StepChange Debt Charity on Medium, where people are continuing the conversation by highlighting and responding to this story.