Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the rise in the cost of living on personal debt levels.

The Government is committed to monitoring and understanding personal debt levels in the UK, including the impact of cost-of-living pressures, and help individuals access appropriate guidance and support if they need help to get their finances back on track. Different organisations measure and define personal debt and problem debt in different ways. HM Treasury do not hold data on levels of personal debt or problem debt but monitors these measures regularly by working closely with the Money and Pensions Service, the Financial Conduct Authority and by engaging regularly with many other stakeholders on their research and findings.

MaPS undertakes an annual survey of Debt Need to understand how many people are facing financial difficulties and to better understand their characteristics, needs and preferences. The most recent survey indicated that 16% (around 8.5 million) of the UK adult population needed debt advice, with a further 20% (around 10.6 million) ‘at risk’ and likely to need help if their situation deteriorates. The summary of their findings can be found in the link below:

Who needs debt advice in 2022? | The Money and Pensions Service (maps.org.uk)

MaPS also intends to publish constituency-level results later this year.