Citizens Advice helped more than 400,000 people across England and Wales with debt problems in 2025, a 44% increase compared with 2021 when the cost-of-living crisis was taking hold. The charity said it supported 407,416 individuals last year, up from 282,564 in 2021.
The average amount owed has surged by more than a third (36%) over the same period, from £6,500 to £8,900. People in problem debt may be behind on priority bills, facing creditor action, or using credit to pay for essentials.
A survey carried out for the charity last autumn found that more than a third (35%) of people trapped in problem debt had been unable to buy essentials such as food in the past six months. This rose to 39% of women, 51% of people with a disability, and 56% among those with a mental health condition.
Nearly two-fifths (39%) of people in problem debt said they felt overwhelmed by the amount of contact from creditors, rising to 51% for those with disabilities and 57% for those with a mental health condition. A fifth (20%) have had their phone, gas or electricity cut off.
Awareness of the “breathing space scheme”, which gives people time to get on top of their debts, remains low, with only 24% of those in problem debt having heard of it. Citizens Advice highlighted the case of a woman in her 60s whose phone was cut off after missing a payment due to vet bills, describing the harassment as “very stressful”.
Anne Pardoe, head of policy at Citizens Advice, said: “It’s clear the cost-of-living crisis hasn’t gone away. Millions of people are battling to keep their heads above water.” She called for “simple changes” to the breathing space scheme, such as longer protection and harsher punishments for creditors who break the rules.
