Household bill arrears rise 25%, charity reports

Household bill debts are rising sharply, according to the StepChange debt charity. They report that people seeking debt advice have seen their arrears jump by 25% in just one year. The average client is now £3,911 in arrears, compared to £3,124 last year. The overall debt for these clients also increased. The average amount of debt rose by 7%, reaching £17,936. Among these figures, mortgage arrears skyrocketed by 69%, climbing from £6,054 to £10,239. Almost 18% of clients with mortgages are now behind on payments. Energy bills are another concern, with arrears increasing by 28% within a year. These debts have surged 58% since 2022, reaching an average of £2,340. Council tax arrears grew by 14% to £1,972. Despite these rising debts, many clients are not citing the cost of living as their main issue. Instead, many are struggling to regain financial stability after difficult economic years. In 2024, 60% of clients had jobs, a slight increase from previous years, and their average monthly income rose by 7% to £1,874. Vikki Brownridge, chief executive of StepChange, highlighted the importance of recognizing the challenges faced by those in debt. She noted the need for government action, especially as many household bills are set to rise. Brownridge urged for targeted support for low-income households to help manage these increasing costs.