Monthly Debt News looks at debts and the causes of debts in Britain from a variety of sources selected for professionals to make the debt sector transparent.
This month’s Debt News post-election edition looks at Labour scraps Winter Fuel payment, the regulation of By Now Pay Later products, rise in student debts, repayment of overpayment of benefits, Thames Water breaches licencing and councils near bankruptcy over special needs spending. You can also find bite-size data to look at the causes of debts in the UK.
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Labour scraps Winter Fuel Payments for millions of pensioners
Rachel Reeves is to remove Winter Fuel Payments for millions of pensioners in a bid to plug the £22bn funding gap left behind by the Conservatives. Who is affected?
More here: Link
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UK Ready to Move on Regulating BNPL
Following the lead of the Consumer Financial Protection Bureau in the U.S., Britain’s new Labour government is preparing to impose new regulations on the UK’s buy now, pay later industry.
More here: Link
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When is a student loan written off?
Almost 1.8 million people in the UK reportedly owe at least £50,000 in student debt. According to data obtained by the BBC from the Student Loans Company (SLC), more than 61,000 borrowers owe over £100,000. Fifty more each owe more than £200,000.
More here: Link
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'I was wrongly told to pay back £13,000 in benefits'
Thousands of people are seeking help with debt after the government paid them benefits, only to then be told they were not entitled to the money and must repay it. Debt counselling service Money Wellness said nearly 10,000 people sought advice last year after the Department for Work and Pensions (DWP) told them it would be clawing money back.
More here: Link
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Thames Water breaches licence as part of its debt downgraded to junk
Thames Water has breached its licence to supply water to nearly 16 million people after some of its debt was downgraded to junk status.
The regulator Ofwat could now fine Thames, the country’s largest water monopoly, up to 10% of its annual turnover, equating to hundreds of millions of pounds. However, since the company is already teetering close to temporary renationalisation, Ofwat is likely to hold off on any immediate large fines.
More here: Link
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£5bn debt crisis of special educational needs ‘could bankrupt’ English councils
A £5bn debt crisis caused by out-of-control overspending on special educational needs could explode in less than two years, bankrupting scores of England’s local authorities, the UK government has been warned.
More here: Link
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(Jul 2024) - Debt Talk: Leasehold & charges (podcast)
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Bite Size stats:
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Government debt was equivalent to 99.5% of GDP at the end of June 2024. It was 96.7% of GDP at the end of June 2023. If we remove the Bank of England’s (BoE’s) debt, we get an alternative measure of government’s underlying debt. Government debt (excluding the BoE) was 91.6% of GDP at the end of June 2024. It was 86.8% of GDP a year before, at the end of June 2023.
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57% of UK adults had used some form of consumer credit in the year to February 2020. Those aged 25-44 are most likely to hold consumer credit, with 80% of 25-34 year olds doing so, compared with only 18% of those aged 75 and over. (House of Commons Library)
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The number of people on Universal Credit in the ‘searching for work’ conditionality regime has fallen from its peak of 2.4 million in March 2021 to 1.4 million in January 2024. The number of people on Universal Credit in the ‘no work requirements’ conditionality regime has been rising steadily, reaching 2.3 million in January 2024.(Gov.uk)
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(April 2024) - Debt Talk: UK waters & our bills (Podcast)
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