StepChange News and Views. October 2024
StepChange Debt Charity
We're the UK's largest provider of free debt advice, online or over the phone.
Welcome to the latest edition of StepChange News and Views.
In this month’s newsletter:
StepChange Connected 2024
On Thursday 19 September, we were delighted to welcome over 175 guests to our annual partner event, StepChange Connected, to explore the pressing issues facing consumers at risk of problem debt.
We were incredibly privileged to hear from three Chief Executives, delivering keynote speeches that took a deep dive into their respective fields, the challenges they are focussed on, and the steps organisations must take to tackle harms and deliver good consumer outcomes.
Nikhil Rathi, Chief Executive at the Financial Conduct Authority, spoke about the link between financial and digital literacy, and the how technological advances offer greater opportunities to engage and support customers. A copy of Nikhil’s speech can be found here.
Our own Chief Executive, Vikki Brownridge spoke of the challenges of a changing landscape in the debt advice sector and how StepChange is evolving to meet the evolving needs of our clients. Abby Thomas, Chief Executive and Chief Ombudsman at the Financial Ombudsman Service, discussed the shift in mindset they are encouraging within organisations to resolve complaints more quickly, in line with FCA guidance, to deliver good client outcomes from the outset.
The day also featured fascinating panels, including a cost-of-living panel with representatives from major regulators, and an eye-opening session looking at the financial challenges faced by Gen Z. We were also honoured to be joined by three StepChange clients, who bravely shared their personal experiences of debt and the profound impact it has had on their lives.
Thank you to all our speakers and guests for making StepChange Connected 2024 such a fantastic day.
New StepChange research: Consumers face £5k in fees on average with fee charging DMPs
New analysis from StepChange reveals that consumers on fee-charging Debt Management Plans (DMPs) will pay nearly £5,600 in fees, and spend around 2-3 years long repaying their debts compared to using a free provider*.
Concerningly, we also know that use of fee-charging DMPs is growing, with one of our partners reporting a 13% rise in customers using DMPs provided by fee-charging organisations since September 2023.
Throughout the remainder of 2024 we will be highlighting the importance of getting free and impartial advice to avoid paying unnecessary fees. Directing people to free debt advice and avoiding unnecessary fees can significantly shorten the path to financial recovery, delivering better outcomes for consumers.
Visit our campaign page to support the campaign, or email our team at partnerships@stepchange.org to get involved.
* Analysis based on average total debts and average monthly repayment of StepChange DMP clients.
StepChange launches new support tools for Scottish consumers
In partnership with the Scottish Government, we have developed a comprehensive guide providing crucial information for Scottish consumers in, or at risk of financial difficulty. This includes recognising the early signs of financial distress and securing emergency help, exploring long-term debt solutions, and implementing effective budgeting techniques. The guides are available as a downloadable PDF and physical copies can be ordered through our partner webpage here.
To meet the needs of a growing, diverse population in Scotland, the downloadable guide is available in English, Urdu, Punjabi, and Polish. For partners looking to support Scottish consumers, we have also created a series of videos covering the key topics from the guide, which can be easily embedded into websites and can be found in the link above.
Engaging with the new government
We were pleased to attend the Labour Party Conference this month to highlight the additional support struggling households across the UK need. With the cost of living still impacting millions, we remain committed to engaging with policymakers and influencers across the political spectrum, and to advocate for free, impartial debt advice and stronger consumer protections.