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Monthly Debt News (April 2023)

 (April 2023)

Monthly Debt News looks at debts and the causes of debts in Britain from various sources selected for professionals to make the debt sector simple.

This month’s Debt News includes a rise in broadband, mobile phone and council tax costs- FCA’s support guidance for existing mortgage borrowers - Ofgem call evidence on prepayment meters - Citizens Advice on bailiff research - CIVEA responds to Citizens Advice research - Bitesize stats - mortgage borrowing reduced - company insolvencies increase - breathing space increase - gas and electricity arrears increased by double.


Broadband, mobile bills and council tax rises threaten ‘awful April’ for householders already facing a cost of living crisis

Households battling the cost of living crisis are facing an onslaught of price hikes that could leave the average family hundreds of pounds a year worse off.

From April 1, millions will face increases to their broadband, mobile, water and council tax bills.

More here: Link


Guidance for firms supporting existing mortgage borrowers impacted by rising living costs

FCA set out how mortgage lenders can help customers worried about, or already struggling with, their mortgage payments because of rising living costs. We also summarise feedback to our draft general guidance.

More here: Link


Ofgem launches national evidence call on prepayment meters

Ofgem and Citizens Advice are launching a national evidence-call to ask energy customers to share their experiences of moving to a prepayment meter (PPM).

The eight-week partnership is a key part of Ofgem’s comprehensive market review of prepayment meters and remote switching, to ensure suppliers meet their legal obligations in protecting customers.

More here: Link


Citizens Advice  researches on bailiff behaving badly stories from the front line

With costs soaring over the last 18 months, 1 in 4 people (27%) have fallen into debt. 

This has seen over 2 million people being contacted by bailiffs during the cost-of-living crisis. But rather than help people get back on track, intimidating behaviour and huge fees charged by bailiffs have pushed many households further into debt and left some afraid to answer the door or even leave their homes. 

More here: Link


CIVEA responds to poorly interpreted Citizens Advice research on civil enforcement

Responding to research based on surveys by Citizens Advice, Russell Hamblin-Boone, chief executive of the Civil Enforcement Association, said: “CIVEA is disappointed to read today’s statement from Citizens Advice and will be interested to understand how this data was gathered and interpreted.

More here: Link

Bite Size Stats:

Net borrowing of mortgage debt by individuals decreased from £2.0 billion in January to £0.7 billion in February, the lowest level since July 2021 (£1.8 billion of net repayment). (Bank of England)


The number of registered company insolvencies in February 2023 was 1,783.  17% higher than in the same month in the previous year (1,518 in February 2022), and 33% higher than the number registered three years previously (pre-pandemic; 1,345 in February 2020). (Insolvency Service)


There were 7,312 Breathing Space registrations in February 2023, which is 26% higher than the number registered in February 2022. (Insolvency Service)


Average debt level where there is no arrangement to repay the debt (arrears for electricity in Q3 2012: £440 (electricity) and £445 )(gas). In Q3 2022:  £1036 (electricity) £807 (gas) (Ofgem)


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