Can you give us a quick summary of the report?

Our 2024 Statistics Yearbook looks at patterns and causes of problem debt in the UK, offering insight into what’s driving financial challenges for households. The report explores the debt and demographics of StepChange clients who completed their first debt advice session between January and December last year. It reveals what has changed since the previous year in terms of debt levels, debt types and client profiles.

Why are the findings of this year’s report particularly important at present?

This year’s report reveals a stark rise in the amount of debt our clients have across household bills – things like mortgages, council tax and energy bills. In total, arrears of this type have risen by 25% between 2023 and 2024. Overall debt levels, when including all unsecured debt and arrears, are up 7% and now stand on average at £17,936 per client. We’ve seen years of financial turmoil for households, cumulating in deeper and more complex debt problems, which is particularly worrying as people face bill rises across the board from April, including higher energy bills, council tax and water.

Tell us about the most surprising facts/headline stats to come out of the report?

Despite debt across household bills growing, there has been an interesting trend of fewer clients citing the cost of living as their main reason for debt since 2023 and 2022. Yet it’s clear that this is not necessarily reflected in the data when you look at levels of arrears.

We’ve also noticed a growing trend of more clients in some form of employment, a figure which now stands at 60%, rising from 56% in 2022. Over two in five clients (43%) are in full time work, which has risen by three percentage points since 2022 (40%). This suggests that work is not shielding people from problem debt, and clients with higher incomes are being increasingly affected by financial difficulties.

Are there any actions/next steps that could be taken by the financial services industry or government in response to the report’s findings?

We’d like to see government address affordability issues around bills, particularly for people on lower incomes. We’ve seen record levels of arrears across energy and council tax which demonstrates just how urgent this is. For lower income households, falling into debt to keep up with the basics is becoming more and more commonplace, so targeted interventions are needed that protects these households from unexpected and unaffordable increases in costs.

It's also important that financial services firms are attuned to customers who may be struggling to make ends meet and relying on credit. This includes having well-designed lending checks and identifying financial difficulties among customers at the earliest possible point, offering them forbearance and signposting to debt advice.

Tell us more about Debt Awareness Week:

This Debt Awareness Week, we’re highlighting how stigma can prevent people from seeking help with problem debt. Despite debt being a normal part of life, many find it hard to open up about money worries. The reality is that unexpected life events will impact us all at some point, job loss, illness, or relationship breakdowns, all these things can have a knock-on effect on our finances and increase our risk of debt problems. In fact, these types of life events are the leading reasons people turn to us for help, not poor money management as is often assumed. Unfortunately, societal judgment around debt often leaves people feeling ashamed or isolated, preventing them from reaching out for support. Many of our clients tell us they wish they had sought help sooner, and doing so was a huge weight lifted.

How can journalists best cover an emotive topic, such as people struggling with financial problems?

Telling real life stories that truly reflect the reality of what it’s like to be affected by problem debt will not only help to break down stigma but also help demystify what happens during debt advice. It can be tempting to cover stories that are unusual or extreme, but it’s important not to play into tropes that will bake in further judgement toward people struggling with debt. For example, sharing the stories of people affected by life shocks or who are struggling to cover bills and relying on credit will be a truer representation of the majority of people we see at debt advice, plus it will be more relatable to others worried about debt. Ultimately inspiring others to get help is the best outcome of any coverage of problem debt.

What does the financial press most often get wrong when covering debt solutions?

There is often a lack of awareness about the range of debt solutions available and what they entail. This can be risky as it means people struggling with debt are vulnerable to being pushed into a debt solution without having full, free and impartial debt advice first. While many people are familiar with bankruptcy, we find fewer have heard of other solutions, be it alternative types of insolvency – Debt Relief Orders (DROs) and Individual Voluntary Arrangements (IVAs) for example, or repayment solutions like Debt Management Plans (DMPs). Ultimately, it’s key that people are aware they should always seek free and impartial debt advice before entering into any debt solution, so they can get a clear understanding of their financial position and go down the most appropriate path based on their individual circumstances.

How can StepChange help those facing financial difficulties?

StepChange offers free and impartial debt advice online 24/7 at stepchange.org and we have expert debt advisors on hand to help over the phone by calling 0800 138 1111.

At first, we’ll take a detailed look at someone’s finances, helping them to create a budget which outlines all their income and expenditure. Based on their circumstances we’ll recommend the best way for dealing with their debts, which may include a debt solution.

Full report: StepChange Debt Charity: Statistics Yearbook 2024

Media contact: Press Team, 0207 391 4598 / press@stepchange.org