Arrears on household bills surge 25% among people seeking debt advice as April bill hikes loom
24 March 2025
StepChange Debt Charity’s 2024 Statistics Yearbook, published today to mark the start of Debt Awareness Week, reveals the average StepChange client is £3,911 in arrears on household bills, a jump of 25% from £3,124 in 2023. Overall, the average amount of debt per StepChange client jumped 7%, from £16,706 in 2023 to £17,936 in 2024 – this includes all arrears and unsecured debt.
Mortgage arrears among StepChange clients saw the most dramatic rise, soaring by 69%, from £6,054 in 2023 to £10,239 in 2024. Alarmingly, almost 1 in 5 (18%) clients with a mortgage are now in arrears. However, the proportion of StepChange clients with a mortgage remains low at 14%.
Energy and council tax arrears have also seen notable increases:
- Energy arrears have risen by 28% year-on-year, with a striking 58% jump since 2022, from £1,485 to £2,340 in 2024
- Council tax arrears have increased by 14% in the last year to £1,972 in 2024
Overall, the Statistics Yearbook reports a mixed picture for personal debt among StepChange clients in 2024. Fewer clients are citing the cost of living as their main reason for debt than in 2023. However, overall debt levels have deepened significantly, and many have struggled to rebuild financial stability after years of economic turmoil.
This is well illustrated by the proportion of clients with a negative budget after debt advice, which has returned to 2022 levels, and now stands at 30%. However, the average monthly deficit among these clients has deepened by £69, from -£464 in 2023 to -£532 in 2024.
Worryingly, StepChange has also seen a growing trend of more clients in employment. In 2024, three in five (60%) clients were in some form of employment, figures which were 59% and 56% in 2023 and 2022 respectively. The average monthly income among clients is also up 7% year-on-year, standing at £1,874 in 2024.
Ahead of the Spring Statement this Wednesday and with multiple household bill increases around the corner, StepChange is calling on the government to have a greater focus on long-term financial resilience for households.
Vikki Brownridge, CEO at StepChange Debt Charity, 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."
Notes to editors
- StepChange’s 2024 Statistics Yearbook can be found here
- StepChange’s annual Debt Awareness Week runs from Monday 24th to 30th March 2025. The theme this year focuses on breaking down stigma around problem debt
- Household bill arrears include dual fuel, electricity, gas, council tax, water, rent, mortgage and TV license