Arrears on household bills surge 25% among those in debt
Arrears on household bills have surged by 25% among those seeking debt advice as April bill hikes loom, a charity has warned.
The StepChange debt charity said its average client was £3,911 in arrears on household bills, up from £3,124 in 2023.
Overall, the average amount of debt for each StepChange client jumped 7%, from £16,706 in 2023 to £17,936 last year.
Mortgage arrears saw the most dramatic rise, soaring by 69% from £6,054 in 2023 to £10,239.
Almost a fifth of StepChange clients (18%) with a mortgage are now in arrears, the charity said.
However, the proportion of clients with a mortgage remained low at 14%.
Energy arrears have risen by 28% year on year, with a 58% jump since 2022, from £1,485 to £2,340 last year.
Council tax arrears have increased by 14% in the last year to £1,972.
StepChange said fewer clients were now citing the cost of living as their main reason for debt despite overall debt levels rising significantly, and many had struggled to rebuild financial stability after 'years of economic turmoil'.
In 2024, three in five clients (60%) were in some form of employment, up from 59% and 56% in 2023 and 2022 respectively.
The average monthly income among clients was also up 7% year on year, standing at £1,874 in 2024.
StepChange chief executive Vikki Brownridge said: 'As we mark the start of Debt Awareness Week, it's important to shine a light on the reality for those facing debt issues in 2025.
'We've now seen a consistent trend of debt levels deepening over the last few years, with the most severe rises occurring in the household arrears our clients have, particularly when it comes to mortgage, council tax and energy debt.
'This is something which could worsen as many bills are set to rise further next month.
'Consistently rising living costs are pulling higher earners into debt, with more people finding work is not shielding them against financial hardship.
'Those on the lowest incomes face growing budget deficits and it's a concern that this could be pushing more people to rely on credit to make ends meet.
'At this week's Spring Statement, it's important the Government does not exacerbate hardship for the most financially vulnerable households.
'This should include addressing increasingly unaffordable household bills, such as energy and council tax, through targeted support aimed at delivering long-term affordability for low income households.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Argus
an hour ago
- South Wales Argus
Ministers to unveil 10-year plan to overhaul infrastructure
The Treasury has promised hundreds of billions over the next decade for projects such as roads, railways and homes. According to the Treasury, the document will lay out Government plans on prioritised policy areas such as upgrading transport networks, building new homes, modernising public services such as hospitals, and assisting the transition to green energy. Ministers are pledging that at least £725 billion will be spent on infrastructure over the next 10 years. Ms Reeves said: 'The British people voted for change – and this is how we deliver it. For too long, our infrastructure – our schools and hospitals, or our roads and bridges – have been left to crumble, holding back communities and stunting economic growth. 'This was a dereliction of duty by previous governments overseeing an era of managed decline, but it ends with this one. 'We are investing in Britain's future, brick by brick, road by road and track by track. 'The strategy will rebuild people's pride in their homes, while growing the economy and putting more money in people's pockets as we deliver our Plan for Change.' The Chancellor outlined a raft of infrastructure investment as part of last week's spending review. According to Wednesday's announcement, there will be £39 billion over the next 10 years to build affordable and social housing, and spending is due to reach £4 billion a year in 2029/30. There was also a £30 billion commitment to nuclear power, including £14.2 billion to build the Sizewell C plant in Suffolk and £2.5 billion in small modular reactors, as well as £15 billion for public transport projects in England's city regions and a four-year settlement for Transport for London worth £2.2 billion. Shadow chancellor Sir Mel Stride said that the Chancellor is 'desperately trying to paper over the damage she's done to the public finances'. Sir Mel added: 'With inflation up, growth down, and unemployment rising, the economy is heading in one direction and that is backwards.'
The Independent
an hour ago
- The Independent
Ministers to unveil 10-year plan to overhaul UK's ‘crumbling' infrastructure
Ministers are to unveil their plan to overhaul infrastructure over the next decade as Rachel Reeves said the country's schools and hospitals have been 'left to crumble'. The Treasury has promised hundreds of billions over the next decade for projects such as roads, railways and homes. According to the Treasury, the document will lay out Government plans on prioritised policy areas such as upgrading transport networks, building new homes, modernising public services such as hospitals, and assisting the transition to green energy. Ministers are pledging that at least £725 billion will be spent on infrastructure over the next 10 years. Ms Reeves said: 'The British people voted for change – and this is how we deliver it. For too long, our infrastructure – our schools and hospitals, or our roads and bridges – have been left to crumble, holding back communities and stunting economic growth. 'This was a dereliction of duty by previous governments overseeing an era of managed decline, but it ends with this one. 'We are investing in Britain's future, brick by brick, road by road and track by track. 'The strategy will rebuild people's pride in their homes, while growing the economy and putting more money in people's pockets as we deliver our Plan for Change.' The Chancellor outlined a raft of infrastructure investment as part of last week's spending review. According to Wednesday's announcement, there will be £39 billion over the next 10 years to build affordable and social housing, and spending is due to reach £4 billion a year in 2029/30. There was also a £30 billion commitment to nuclear power, including £14.2 billion to build the Sizewell C plant in Suffolk and £2.5 billion in small modular reactors, as well as £15 billion for public transport projects in England's city regions and a four-year settlement for Transport for London worth £2.2 billion. Shadow chancellor Sir Mel Stride said that the Chancellor is 'desperately trying to paper over the damage she's done to the public finances'. Sir Mel added: 'With inflation up, growth down, and unemployment rising, the economy is heading in one direction and that is backwards.'
ITV News
an hour ago
- ITV News
Ministers to unveil 10-year plan to overhaul infrastructure
Ministers are to unveil their plan to overhaul infrastructure over the next decade as Rachel Reeves said the country's schools and hospitals have been 'left to crumble'. The Treasury has promised hundreds of billions over the next decade for projects such as roads, railways and homes. According to the Treasury, the document will lay out Government plans on prioritised policy areas such as upgrading transport networks, building new homes, modernising public services such as hospitals, and assisting the transition to green energy. Ministers are pledging that at least £725 billion will be spent on infrastructure over the next 10 years. Ms Reeves said: 'The British people voted for change – and this is how we deliver it. For too long, our infrastructure – our schools and hospitals, or our roads and bridges – have been left to crumble, holding back communities and stunting economic growth. 'This was a dereliction of duty by previous governments overseeing an era of managed decline, but it ends with this one. 'We are investing in Britain's future, brick by brick, road by road and track by track. 'The strategy will rebuild people's pride in their homes, while growing the economy and putting more money in people's pockets as we deliver our Plan for Change.' The Chancellor outlined a raft of infrastructure investment as part of last week's spending review. According to Wednesday's announcement, there will be £39 billion over the next 10 years to build affordable and social housing, and spending is due to reach £4 billion a year in 2029/30. There was also a £30 billion commitment to nuclear power, including £14.2 billion to build the Sizewell C plant in Suffolk and £2.5 billion in small modular reactors, as well as £15 billion for public transport projects in England's city regions and a four-year settlement for Transport for London worth £2.2 billion. Shadow chancellor Sir Mel Stride said that the Chancellor is 'desperately trying to paper over the damage she's done to the public finances'. Sir Mel added: 'With inflation up, growth down, and unemployment rising, the economy is heading in one direction and that is backwards.'
