Latest news with #VikkiBrownridge
The Independent
24-03-2025
- Business
- The Independent
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.'
The Independent
27-01-2025
- Business
- The Independent
Two in five adults expect their financial situation to worsen in 2025
Two-fifths (41%) of adults expect their financial situation to worsen this year, according to a debt help charity. More than half (59%) of those expecting their finances to get worse said this was due to higher energy bills, a survey for StepChange Debt Charity found. Around one in six (17%) adults said they always worried about money, while a further 59% said they often or sometimes worried about money. Of those worrying about money, just over half (53%) said they were worrying more than they did one year ago. The cost of living, including stubbornly high energy bills, continues to impact families, individuals, and communities, with particular strain being felt by women and those with parental responsibilities Vikki Brownridge, StepChange Debt Charity Women were particularly likely to say they were worrying more about money now than a year ago, at 58%, compared with 48% of men. Two-fifths (42%) of people with parental responsibilities anticipated their financial situation would worsen in the coming year, with more than half (54%) of them saying they worried more about money now than they did a year ago. StepChange said nearly 4,000 people visited its website looking for debt advice on Christmas day alone. Vikki Brownridge, chief executive at StepChange Debt Charity, said: 'It's clear that millions of people across the UK are feeling the weight of financial uncertainty. 'The cost of living, including stubbornly high energy bills, continues to impact families, individuals, and communities, with particular strain being felt by women and those with parental responsibilities. These challenges are not temporary. They reflect the long-term financial pressures many are facing and without the right support, it's only going to get harder for people to manage their finances Vikki Brownridge, StepChange Debt Charity 'What's concerning is how many are facing worries about their finances going into 2025, even more so than this time last year. 'These challenges are not temporary. They reflect the long-term financial pressures many are facing and without the right support, it's only going to get harder for people to manage their finances. 'We know that debt is often a consequence of these mounting pressures, and for many, seeking help as early as possible can make a significant difference. 'If you are struggling, speak to your creditors who have a responsibility to support those in difficulty.' Debt support charities can help with advice on managing debt and budgeting. The survey was carried out by Censuswide, among 2,000 people across Britain in December 2024.
