StepChange client debt levels up by 25% in 2022

This is despite the average client earning more than they did a year ago. 

The yearbook revealed that the average (mean) unsecured debt per client increased by 25% from £11,176 in 2021 to £13,941 in 2022. 

On top of that, there was a 20% increase in clients seeking debt advice or guidance with problem debt between 2021 (483,247) and 2022 (580,913).

One third (33%) of clients were in arrears with their energy bills in 2022, compared to 29% in 2021.

StepChange is also releasing its client data for February 2023 today (29 March), which shows monthly client volumes continue to rise – they were 19% higher in February 2023 (16,076) compared to February 2022 (13,543).

Meanwhile, the cost of living has been the singular most common reason for new clients’ debts since June 2022, with one in four (25%) citing it at the time of advice in February 2023. 

In 2021 it was the eighth most common reason for debt, whereas by 2022 it was the second most common reason.

Richard Lane, director of external affairs at StepChange Debt Charity, said: “Looking at our client’s debt situations in 2022, and seeing how client volumes continue on an upward trajectory into 2023, it’s clear that without further intervention from the Government, more and more people will face a battle to keep their heads above water. 

“This is not just people on the lowest incomes, our stats show that this crisis is sweeping middle earners into hardship too.

“Energy bills are still overwhelmingly higher than they were a year ago, and despite government help, these simply aren’t manageable for thousands of households. We’re calling for targeted funding to write-off arrears for people who simply cannot afford to repay. Looking further ahead, a social tariff for energy would act as a long-term solution to protect financially vulnerable households from debt and fuel poverty.”