UK Average Debt Statistics
Table 8.1
| Oct-22 | Oct-21 | Annual Change | |
| Average household debt in the UK (excluding mortgages) | £7,412 | £7,066 | +£346 |
| Average household debt in the UK (including mortgages) | £65,746 | £62,965 | +£2,781 |
| Average unsecured consumer debt per UK adult | £3,895 | £3,713 | +£182 |
| Source: The Money Charity, December 2022 | |||
Average household debt in the UK (excluding mortgages) was £7,412 in October 2022. The figure has increased by £346 on the previous year. Average household debt in the UK (including mortgages) was £65,746 in October 2022. The figure has risen by £2,781 on the previous year. Average consumer borrowing per UK adult (including credit cards, motor and retail finance deals, overdrafts and unsecured loans) was £3,895 in October 2022, up £127 on the previous year.
National Debt Advice – StepChange Data
The latest Yearbook report from StepChange Debt Charity highlights the debt situations of clients who contacted the charity between January and December 2022 for their most recent advice session. Like many households across the UK, StepChange clients felt the impact of increased living costs on essential items such as food and energy. For many clients, this rise in costs left them unable to afford these everyday essential costs.
Over half a million (580,913) clients contacted StepChange seeking debt advice or guidance with their problem debt in 2022, which is a 20% increase on 2021 (483,247). In 2022, 187,278 clients completed full debt advice, which is a 9% increase on 2021 (171,232).
StepChange Client Budgets
Table 8.2
| Median Average | 2022 | 2021 | 2020 | 2019 | 2018 | Annual Change 2021-2022 |
| Monthly income | £1,490 | £1,366 | £1,291 | £1,437 | £1,400 | +£124 |
| Monthly expenditure | £1,395 | £1,278 | £1,185 | £1,335 | £1,302 | +£117 |
| Monthly surplus | £68 | £72 | £65 | £56 | £52 | -£4 |
| Source: StepChange Yearbook Statistics on Personal Debt 2022, March 2023 | ||||||
Average monthly income and expenditure levels have increased in 2022 and are higher than recent years. In 2022, 56% of StepChange clients were in some form of employment, which may partly reflect why there is a rise in the average monthly income. The increase seen in the average monthly expenditure reflects the rising cost of living.
Despite the increase in StepChange client’s average monthly income year-on year, the median average monthly surplus is marginally down by £4, from £72 in 2021 to £68 in 2022.
StepChange Clients with a negative budget
Table 8.3
| Proportion of clients with a negative budget | 2022 | 2021 |
Percentage Point Annual Change |
| All clients | 29% | 27% | +2pp |
| Women | 30% | 28% | +2pp |
| Men | 28% | 28% | 0pp |
| Other gender identity | 30% | 29% | +1pp |
| Under 25 | 27% | 26% | +1pp |
| 25-39 | 26% | 25% | +1pp |
| 40-59 | 34% | 32% | +2pp |
| 60 and over | 33% | 30% | +3pp |
| Adults with children | 60% | 54% | +6pp |
| Single with children | 34% | 30% | +4pp |
| Couple with children | 26% | 24% | +2pp |
| Single without children | 29% | 29% | 0pp |
| Couple without children | 24% | 24% | 0pp |
| Universal Credit | 46% | 44% | +2pp |
| Source: StepChange Yearbook Statistics on Personal Debt 2022, March 2023 | |||
A negative budget describes where a client’s monthly expenditure is greater than their
monthly income after receiving money advice, budgeting advice and maximising their incomes. The proportion of clients with a negative budget has increased by two percentage points from 27% in 2021 to 29% in 2022. The proportion of clients with a negative budget is also higher among those aged 40-59 (34%) and those aged over 60 (33%), single adults with children (34%), and clients in receipt of Universal Credit (46%). 60% clients with children have a negative budget in 2022, which is an increase of six percentage points compared to 2021 (54%).
StepChange Clients – Arrears on essential household bills
Table 8.4
| Arrears type | 2022 | 2021 | 2020 | 2019 | Annual Change 2021-2022 | |||||
| Average arrears amount | % of clients | Average arrears amount | % of clients | Average arrears amount | % of clients | Average arrears amount | % of clients | Average Arrears Change | percentage point change | |
| Council Tax | £1,689 | 52% | £1,578 | 45% | £1,292 | 36% | £1,146 | 30% | +£111 | +7pp |
| Electricity | £1,272 | 30% | £1,152 | 28% | £1,002 | 26% | £825 | 17% | +£120 | +2pp |
| Gas | £874 | 25% | £781 | 23% | £703 | 23% | £661 | 13% | +£93 | +2pp |
| Mortgage | £5,751 | 16% | £4,497 | 19% | £3,518 | 17% | £2,977 | 17% | +£1,254 | -3pp |
| Rent | £1,786 | 22% | £1,676 | 25% | £1,463 | 27% | £1,084 | 21% | +£110 | -3pp |
| TV Licence | £108 | 3% | £102 | 4% | £92 | 7% | £103 | 8% | +£6 | -1pp |
| Water | £1,065 | 29% | £988 | 33% | £866 | 32% | £804 | 24% | +£77 | -4pp |
| Source: StepChange Yearbook Statistics on Personal Debt 2022, March 2023 | ||||||||||
Arrears to essential household bills all saw an increase over the last year. Of clients that contacted the debt charity StepChange in 2022, 52% had arrears with Council Tax. The average value of Council Tax arrears was £1,689 per client. The average value of Council Tax arrears has increased since 2021 by £111. In addition, the proportion of clients with council tax arrears has increased by 7 percentage points since 2021.
The average amount owed by clients with mortgage arrears was £5,751 this figure increased by £1,254 on 2021. However the proportion of clients calling in with mortgage arrears saw a drop from 19% of clients in 2021 to 16% in 2022. Average amount of electricity arrears increased to £1,272, gas arrears increased to £874 and water arrears increased to £1,065.
StepChange Proportion of Clients with Unsecured Debts
Table 8.5
| National UK Data | 2022 | 2021 | 2020 | 2019 | 2018 | Annual Change 2021-2022 |
| Credit Card | 66% | 66% | 67% | 69% | 68% | 0% |
| Overdraft | 34% | 36% | 39% | 46% | 47% | -2% |
| Personal Loan | 47% | 49% | 52% | 48% | 47% | -2% |
| Catalogue | 35% | 36% | 35% | 35% | 34% | -1% |
| Payday Loan | 11% | 11% | 13% | 17% | 18% | 0% |
| Store Card | 12% | 12% | 14% | 13% | 12% | 0% |
| Source: StepChange Yearbook Statistics on Personal Debt 2022, March 2023 | ||||||
Credit cards remain the most common debt type among StepChange clients, at 66% which is unchanged on 2021. The proportion of clients with personal loans has decreased by two percentage points between 2021 (49%) and 2022 to 47%. The proportion of clients with overdrafts has also decreased by two percentage points to 34% in 2022. The continual fall in the proportion of clients with overdrafts is possibly due to regulatory interventions aimed at reducing the harm of repeat overdrafts.
Local Debt Advice
Quality assured, impartial and free legal debt advice service is provided by specialist debt advisers who provide advice in accordance with Financial Conduct Authority regulations. Advice is provided on a wide range of debt issues including rent/mortgage arrears, utility debts, council tax arrears and credit debts. Local Debt Advice can be accessed remotely via the telephone or online chat services or at face to face appointment sessions.
This local debt advice is primarily funded by the Government’s Money and Pensions Service (MaPS). Better Leeds Communities, Citizens Advice Leeds. Ebor Gardens Advice Centre and St Vincent’s Advice Centre are the four independent advice agencies in Leeds that deliver this service. Each agency has provided information relating to the number of debt clients they have supported and the number of MaPS funded debt advisers in the city on an annual basis to help provide an insight on the demand for debt advice locally in Leeds.
Although the table below focusses on MaPS debt advice provision, it should be noted other funds are available and are used for debt advice locally to support provision alongside national government funding.
Table 8.6
| Leeds Debt Advice | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 |
| Debt Clients | 4,667 | 4,664 | 3,145 | 3,661 | 4,800 |
| Debt Advisers (FTE) | 13.5 | 15.5* | 14.9 | 12.0** | 11.6** |
| * = data includes 1 trainee debt adviser | |||||
| **=data includes 2 trainee debt advisers | |||||
| Source: Leeds MaPS funded Debt Advice Services, August 2023 | |||||
In 2022-23 there were 4,800 people in Leeds in receipt of debt advice with an independent advice provider across Leeds. There were 9.6 fully qualified full time equivalent (FTE) debt advisers and 2 trainee advisers during this time.
Just prior to the pandemic in 2019/20 there were 14.5 FTE fully qualified debt advisers and one trainee, and 4,664 people receiving debt advice. From this point up to 2022/23, advice client numbers increased 3% but the number of FTE fully qualified advisers fell by 4.9.
Numbers of clients for debt advice has recently started to exceed pre-pandemic levels. The drop in client numbers in 2020/21 reflects the response to debt during the pandemic and increased forbearance amongst creditors. The dip in 2021/22 is not indicative of a fall in demand but a reduction in the number of debt advisers as a result of national funding changes.