Adults receiving disability benefits twice as likely to be in serious problem debt than the wider population
25 March 2025
StepChange Debt Charity has reacted to announcements made by the Chancellor in today’s Spring Statement. The charity says while increases to some benefits are welcome, it shouldn’t come at the expense of cutting support for the most vulnerable – particularly as this will result in a significant net reduction in the social safety net overall.
Richard Lane, Chief Client Officer at StepChange Debt Charity, said:
"Our research shows that people who rely on support like PIP to cover the additional costs of disability are more likely to struggle with debt problems. YouGov polling we commissioned found UK adults receiving adult disability benefits (15%) are twice as likely to be in serious problem debt compared to the wider population (8%). PIP is designed to recognise these extra costs, so it’s vital that the government ensures people with disabilities or health conditions can access the financial help they need.
"While we welcome an increase in UC payments so that the social safety net keeps up with the cost of essentials, it should not come at the expense of cutting support for some of the most vulnerable. Current plans will result in a significant net reduction in social security spending by 2029/30 – that’s not the direction we want to see.
"Unaffordable debt deductions from benefits also drive real hardship and the government could take further action in this area by limiting deductions for UC advances and overpayments to 5% of the standard allowance. However we need long-term solutions, which is why we are calling for a Minimum Income Commission to provide independent advice on setting benefit levels.
"Finally, it's important to remember that moving into work doesn’t always protect people from income shortfalls or problem debt, especially for those with disabilities or health conditions who face additional costs. Six in ten StepChange clients are in work, highlighting the need for a benefits system that provides genuine security."
Notes to Editors
- All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 4,613 adults. These figures are based on a sub-set of 353 respondents receiving PIP/DLA. Fieldwork was undertaken between 19th – 21st January 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).