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Problem Debt in the Cost of Living Crisis and Beyond…

It is with great thanks to our client MoneyPlus Group that we were able to present our new report on Wednesday, published on the Etic Lab Press imprint, investigating the workings of the debt management ecosystem in the UK.

MPG do challenging work and they do it well, with real commitment and its a risky and probably uncomfortable thing to do to make time and space for looking at themselves and their industry with the depth and scrutiny that they have. 

They deserve to take credit for putting themselves in that position for this project.

The past four years of economic and social emergency have placed intense strain on the financial stability of UK households. The Covid -19 pandemic brought massive disruption to the jobs market, followed up by explosive inflation and the cost of living crisis. As of Spring 2024, some of the impacts of this crisis are starting to ease, as price rises slow and interest rates begin to stabilise. However, there are signs that the UK’s debt crisis is just beginning. As government support programs have gradually tapered off, the prevalence of problem debt has risen, and advice agencies are now seeing soaring demand across the board.

The purpose of this report is to address the UK’s personal debt crisis in the following respects:

  • To put the events of the past four years in their broader macroeconomic context, showing how long-term policy decisions turned the UK into a high-leverage society.
  • To address the impacts that the pandemic and the cost of living crisis have had on the financial stability and indebtedness of UK households.
  • To explore how future economic turmoil might impact levels of indebtedness and demand for debt advice.
  • To review the current policy landscape around debt and insolvency, and to map out what the sector can do to improve resilience and create better customer outcomes in the short and medium-term.

Also a thanks to Havas Red who hosted the launch event at their London office and arranged for a fantastic panel to discuss the issues arising out of the book.

Anybody wishing to download the audio or ebook versions of the report can get them here from MoneyPlus. Reprints of the physical edition are available from Etic Lab.

To discuss the ideas presented in this article please click here.