Statistics Yearbook 2024: The reality of debt in the UK
By Asiya Uddin, Senior Researcher
Late last month, we published our latest Statistics Yearbook which captures a critical period of change in the patterns and causes of problem debt in the UK, offering valuable insights into the financial challenges faced by households. Our annual publication explores the debt and demographic situation of clients, who fully completed their very first debt advice session, between January and December 2024.
Over 170,000 clients completed first-time debt advice in 2024. The number of clients completing a full debt advice session in 2024 is slightly down compared to 2023. This decline reflects shifts in both our internal capacity and the evolving debt advice landscape.
This does not mean that debt problems are disappearing. Our latest polling[1] revealed around one in 12 (8%) UK adults are in problem debt[2], which StepChange estimates[3] is around 4.1 million UK adults. So, while we have seen fewer people coming to us for help, a sizeable proportion of the population is still affected.
Each year, compiling The Statistics Yearbook is a very sobering experience. The report paints a stark picture of financial difficulty in the UK and brings to the forefront the extremely challenging situations clients face when trying to deal with their problem debt. Below I have highlighted some findings from the report:
1) The average unsecured debt amount per client has increased
There has been a notable uptick in the average unsecured debt[4] amount. In 2024, the average (mean) total unsecured debt amount held per client has increased by £1,018 (up 7%) compared to 2023, from £14,654 in 2023 to £15,672 in 2024. The increase seen may be related to higher interest rates, since the end of 2021.
When drilling down into the specific unsecured debt types, credit cards emerge as the most common unsecured debt type among new clients in 2024, with a two-third (67%) of clients holding this debt. Credit cards have historically been the most common unsecured debt type held by clients, with this trend continuing in 2024.
Furthermore, the average amount of credit card debt held per client increased by a higher proportion compared to the other unsecured debt types[5], from £6,898 in 2023 to £7,424 in 2024 — this represents an 8% increase.
2) Mortgage arrears levels have soared
Since 2023, the proportion of clients in household arrears[6] has decreased by three percentage points to 47% in 2024. Despite seeing a fall, the average arrears amount for each bill has increased quite substantially between 2023 and 2024. On the whole, the average household arrears amount has increased from £3,124 in 2023 to £3,911 in 2024, which represents a 25% increase.
Out of every household arrears type, mortgages saw the largest year-on-year increase in the average arrears amount from £6,054 in 2023 to £10,239 in 2024. This is an increase of 69% between 2023 and 2024. This may reflect some of the challenges clients are feeling due to the base rate peaking at 5.25% in August 2023, which was a 16-year record high[7].
Alongside an increase in average mortgage arrears amounts, the proportion of clients responsible for paying a mortgage who were in arrears stands at just under one in five (18%) clients — this is two percentage points higher than 2023 (16%). However, the proportion of clients who have a mortgage remains unchanged year-on-year at one in seven (14%).
3) Majority of clients are in employment
In 2024, three in five (60%) StepChange clients were in some form of employment. Specifically, the proportion of clients in full-time employment has increased again, from 42% in 2023 to 43% in 2024 and is three percentage points higher than 2022 (40%).
This trend was explored in our client insights report ‘In work. But still in debt’. The report highlights how full-time employment is not enough to shield people from debt problems. YouGov polling from January 2024[8] revealed that among those experiencing problem debt in the UK, around 52% are in full-time employment. This proportion has increased by a further five percentage points in January 2025, with 57% of UK adults experiencing problem debt being in full-time employment.
Traditionally, work has long been associated with financial stability. However, the number of people experiencing in work indebtedness continues to rise. Those working full-time are not immune to debt problems and it simply is not enough to safeguard them from financial difficulty.
The findings reveal a worrying reality as financial struggles are deepening. While the number of people seeking debt advice has slightly declined, this does not indicate an improvement in financial resilience. Instead, rising unsecured debt levels, increasing arrears amounts, and the growing prevalence of in-work debt suggest for many households, financial resilience continues to be stretched thin as they navigate the lasting and ongoing effects of economic upheaval.
[1] YouGov polling surveyed a sample of 4,613 UK adults between 19–21 January 2025. The survey was carried out online and the figures have been weighted to be representative of the profile of all UK adults.
[2] Showing signs of problem debt is defined as at least three or more of the following activities, with regards to your household finances, in the last three months: Made just the minimum repayments on my debts, Used my overdraft in each of the last three months, Used credit, loans or an overdraft to make it through to payday, Fell behind on essential household bills (e.g. rent, mortgage, energy bills, council tax etc.), Used credit to keep up with existing credit commitments, Got hit by late payment or default charges, Missed a regular monthly payment on at least one of my debts, and Used credit to pay essential household bills (e.g. rent, mortgage, energy bills, council tax etc).
[3] StepChange analysis estimate this figure using ONS data. Office for National Statistics (ONS), released 8 October 2024, ONS website, statistical bulletin, Population estimates for the UK, England, Wales, Scotland, and Northern Ireland: mid-2023
[4] Unsecured debts account for all debts recorded at the time of advice, other than arrears on essential household bills, such as council tax, utility bills and rent, and secured lending against a property
[5] The other unsecured debt types which are explored in the Statistics Yearbook 2024 are: personal loans, overdrafts, catalogue debts, store card debts, and payday loans.
[6] This includes the following bill types: dual fuel, electricity, gas, council tax, water, rent, mortgage, TV licence, and ground rent/service charges
[7] Interest rates and Bank Rate | Bank of England
[8] YouGov polling surveyed a sample of 2,096 UK adults between 13–15 January 2024. The survey was carried out online and the figures have been weighted to be representative of the profile of all UK adults.
