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Debt News (Dec 2023)

Monthly Debt News looks at debts and the causes of debts in Britain from diverse sources to simplify the debt sector for a broad audience.

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This month’s Debt News includes a 5% energy price cap increase, Ofgem reviews energy standing charge, EDF issues debt warning, billions of welfare cuts planned and charities condemn the cuts, a rise in council tax in struggling boroughs, a pensioner had sleepless nights for recieving demands to pay £12,  gender gap and debt crisis. And finally, bitesize stats to get an overview of the causes of debts in Britain.

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Debt News

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Ofgem announces 5% energy price cap increase


Energy regulator Ofgem has announced that the energy price cap will increase by 5% on the previous quarter from 1st January to 31st March 2024.

The cost for an average household paying by direct debit for dual fuel equates to £1,928, a rise of £94 for a year – around £7.83 a month. The price cap, updated every quarter, sets a maximum that can be charged to customers for energy bills.


More here: Link

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Energy standing charges review after anger at rises


Billpayers, charities and businesses are being urged to give their views on daily standing charges on energy bills, as part of a review.


Regulator Ofgem said it wanted to open the debate over the charges, including opinions on how to change the system


More here: Link 

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EDF Energy customer issues £4,500 warning and says 'it is just horrible’


A disabled woman has been hit by a £4,500 energy bill - and says she was branded "entitled" by customer service. EDF Energy customer Mel is classed as 'vulnerable' due to living with fibromyalgia and was left feeling degraded when a customer service worker was heard calling her 'entitled' while contesting a £4,500 energy bill.


More here: Link

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Welfare cuts worth billions planned by ministers


Ministers have drawn up large benefit changes for people who are unable to work due to health conditions, the BBC has learned. The changes, affecting hundreds of thousands of people from 2025, would save £4bn from the welfare budget.


More here: Link

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Charities condemn Chancellor’s threat to cut benefits 


The Chancellor, Jeremy Hunt, has been criticised by charities for threatening to stop paying benefits to people who have not looked for a job for six months.

Mr Hunt announced the policy as part of his autumn budget, which he presented in the House of Commons on Wednesday. 


More here: Link

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Eye-watering council tax increases by almost £100 

Council tax bills increased 5.1 percent in the past year with one area seeing their bills go up by almost 14 percent.

Analysis from RIFT found average bills for Band D properties went up from £1,966 last year to £2,065 this year. London saw the biggest increase, as bills went up 6.2 percent to £1,801 a year.


More here: Link

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Rogerstone pensioner sent debt letters over missing phone

A pensioner and his wife say they have had sleepless nights after receiving letters from a debt collector on behalf of their phone provider when owing just £12.


More here: Link

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Gender gap revealed in debt crisis data 

New research from StepChange Debt Charity reveals the increasing financial hardship and surge in women seeking debt advice, highlighting a gender imbalance in household finances.


More here: Link


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 (Nov 2023) - Debt Talk: Alternative lending & Debt (Podcast)

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Bite Size  Stats

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 In 2023/24, the expenditure of the United Kingdom government is expected to reach 1,189 billion British pounds, with the highest spending function being the 341 billion pounds expected to be spent on social protection, which includes pensions and other welfare benefits (Statista)

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After seasonal adjustment, the number of individual insolvencies from July to September (Q3) 2023 was 6% lower than in Q2 2023. (GOV UK)

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 The number of debt relief orders (DROs) was the highest quarterly number since their introduction in 2009. Bankruptcies also increased, but individual voluntary arrangements (IVAs) were lower. The total number of individual insolvencies was 15% lower than in Q3 2022. (GOV UK)

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Compared to the same quarter in 2022, mortgage possession claims increased from 3,681 to 4,185 (14%), orders from 2,480 to 2,923 (18%), warrants from 2,473 to 2,289 (7%) and repossessions by county court bailiffs decreased from 758 to 622 (18%) (GOV UK)

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When compared to the same quarter in 2022, landlord possession claims increased from 21,007 to 24,938 (19%), orders from 15,350 to 17,977 (17%), warrants from 8,573 to 9,753 (14%) and repossessions from 5,464 to 6,080 (11%) (GOV UK)

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 (Oct 2023) - Debt Talk: The cost of fuel (Podcast)


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THE END

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