Arrears on household bills have surged by 25% among those seeking debt advice as April bill hikes loom, a charity has warned.
The StepChange debt charity said its average client was £3,911 in arrears on household bills, up from £3,124 in 2023.
Overall, the average amount of debt for each StepChange client jumped 7%, from £16,706 in 2023 to £17,936 last year.
Mortgage arrears saw the most dramatic rise, soaring by 69% from £6,054 in 2023 to £10,239.
Almost a fifth of StepChange clients (18%) with a mortgage are now in arrears, the charity said.
However, the proportion of clients with a mortgage remained low at 14%.
Energy arrears have risen by 28% year on year, with a 58% jump since 2022, from £1,485 to £2,340 last year.
Council tax arrears have increased by 14% in the last year to £1,972.
StepChange said fewer clients were now citing the cost of living as their main reason for debt despite overall debt levels rising significantly, and many had struggled to rebuild financial stability after “years of economic turmoil”.
In 2024, three in five clients (60%) were in some form of employment, up from 59% and 56% in 2023 and 2022 respectively.
The average monthly income among clients was also up 7% year on year, standing at £1,874 in 2024.
StepChange chief executive Vikki Brownridge said: “As we mark the start of Debt Awareness Week, it’s important to shine a light on the reality for those facing debt issues in 2025.
“We’ve now seen a consistent trend of debt levels deepening over the last few years, with the most severe rises occurring in the household arrears our clients have, particularly when it comes to mortgage, council tax and energy debt.
“This is something which could worsen as many bills are set to rise further next month.
“Consistently rising living costs are pulling higher earners into debt, with more people finding work is not shielding them against financial hardship.
“Those on the lowest incomes face growing budget deficits and it’s a concern that this could be pushing more people to rely on credit to make ends meet.
“At this week’s Spring Statement, it’s important the Government does not exacerbate hardship for the most financially vulnerable households.
“This should include addressing increasingly unaffordable household bills, such as energy and council tax, through targeted support aimed at delivering long-term affordability for low income households.”
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