High levels of debt are ‘new normal’ for ordinary people while rich get richer

The charity StepChange have raised alarm bells at the ever-increasing debts facing ordinary people from essential services in the UK. Pointing to housing, utilities, and council tax, they highlight how low-income households face rising arrears through unavoidable cost increases.

Costs have increased yearly in response to poor investment and bad management with increases imposed by local government and regulators. With the US‑ and Israeli‑led conflict in Iran driving up global energy and living costs, those costs are likely to rise even further. Now, the debt charity is urging the government to step in with stronger support and intervention.

Subsequently, StepChange called on the government to take action to prevent households from falling further into debt simply to meet essential costs. Pushing for national social tariffs for energy and water, Chief Executive Vikki Brownridge stated they would:

bring costs back down to a level that is affordable for those with low incomes or high needs.

High levels of debt on essential UK bills are the ‘new normal’, warn campaigners

StepChange’s data shows there were significant numbers of households behind with energy bills, even though prices had fallen from the highs of 2022. Over a third of clients were in debt to energy… pic.twitter.com/ygGA7TIFkf

— ECIU (@ECIU_UK) March 16, 2026

Debts: fleecing ordinary people is the ‘new normal’

Despite a much-needed slower rise in rent and mortgage costs, StepChange described how its clients are increasingly falling behind on meeting exorbitant household bills. Furthermore, the debt charity pointed out that rent and mortgage arrears have increased by 15% and 22% respectively. This just goes to strengthen the argument that bills are reaching impossible levels that ordinary people are being priced out of essential services.

Moreover, the brutal and illegal war of aggression against Iran will inevitably push the cost of living even higher, making life more backbreaking for those already struggling to survive. Low-income households and people with greater needs, particularly the disabled community, will suffer the most because the super-rich owners of our utilities are driving up prices they cannot afford to bear.

People will run out of money, but their needs won’t vanish with their savings. The concern grows even greater for disabled and older communities, whose essential needs cannot simply be ignored or scaled back.

The Guardian reported:

StepChange’s data shows there were significant numbers of households behind with energy bills, even though prices had fallen from the highs of 2022. Over a third of clients were in debt to energy companies, which was down from 40% in 2024, but the average debt had grown by £220 to £2,560.

Two in five of the clients seen by the charity over the year were receiving universal credit, and three in five lived in rented accommodation.

Vikki Brownridge, CEO of StepChange, said:

The reality is that rising essential bills and with that rising arrears types across housing, energy, and consumer credit debt, have become the new normal for many households.

The cost of everyday essentials remains prohibitively high for many households, and our client data has reflected this pressure for several years. Rising household arrears show little sign of slowing down.

Debt Awareness Week 2026

People have faced relentless increases to essential services and goods which have left budgets at breaking point for many. With the costs imposed being related to essential services and needs, people are forced to look into high-interest debts through loans and credit cards. This can only exacerbate the misery in daily life for struggling households across the UK, as debts just continue to grow.

Due to the devastating impacts of debt, campaigners have designated this week as ‘Debt Awareness Week‘, purposed to raise awareness of its inevitable harms and push for necessary change.

We wrote recently about how a significant number of ordinary people are left with just £25 a week after meeting their bills. Highlighting how difficult life has become for British people, James Wright wrote:

The neoliberal system leaves 40 percent of Britons with less than £25 at the end of each week, a survey by the Cost of Living Action (COLA) group has found. This is a pittance and unlikely to stretch far under the cost of living crisis, where even employed people are finding themselves out of pocket.

Our money will run out, our needs will not

This issue is urgent and is only becoming more entrenched in British society which will only make it harder to remedy. Calls to move away from privatisation have long been made however leaders refuse to listen. Instead, they bow to super rich shareholders and punish ordinary people.

With councils across the country increasing council tax by approximately 5%, the government must finally reckon with the very real struggle facing families and vulnerable people across the country. After all, budgets disappear and money runs out, but essential needs do not.

Essential services should never operate for profit. All they have done is give the super-rich a captive market to fleece.

Featured image via the Canary