Debt news: page 4
- April 2022
SDRP consultation opens on draft regulations
The government has opened a consultation on draft regulations for a statutory debt repayment plan, a new repayment-based debt solution for England and Wales, running until 5 August 2022.
Cost of living increase becomes second most cited reason for debt among StepChange clients
StepChange's April 2022 monthly client data shows 15% of new clients cited a cost of living increase among their main reasons for debt, up from 7% in September 2021.
New debt packaging rules could come into force
The Financial Conduct Authority has proposed banning referral fees for debt packagers, with new rules expected to come into force in April 2022 subject to a consultation that closed in December 2021.
DWP requires consent for new or increased Fuel Direct deductions for ongoing energy costs
From 1 April 2022 the Department for Work and Pensions will only agree to new or increased deductions for ongoing energy costs from benefits where the customer gives consent.
Negative budgets among new StepChange clients rose to 32%
StepChange's April 2022 client data shows 32% of new debt advice clients were in a negative budget, up from 29% a year earlier, with cost of living cited by 15%.
- March 2022
Cost of living rises among most cited reasons for debt among StepChange new clients
StepChange said 13% of new clients in March 2022 named the increased cost of living as a main reason for debt, up from 7% in September 2021, as negative budgets also rose.
Negative budget clients reach highest proportion in six months
StepChange reports that 33% of new clients in March 2022 had a negative budget, the highest share in six months and up four percentage points from January, as cost of living pressures grow.
Social Justice and Social Security Committee publishes findings on low income and problem debt
The Scottish Parliament's Social Justice and Social Security Committee has called on the Scottish Government to move quickly on a mental health moratorium for people in problem debt, as ministers prepare enabling legislation.
- February 2022
DWP updates staff guidance on waiving overpayment recovery
The Department for Work and Pensions updated its staff guidance in February 2022 on when to waive recovery of benefit overpayments, adding factors to consider but limiting waiver to severe welfare cases.
Negative budgets among new clients reach a 12-month high
StepChange says 32% of new clients had a negative budget when they received debt advice in February 2022, the highest share in the previous 12 months.