The report states that, with ‘effective steps’, the government could save £3bn; currently, the strain on the economy is £8.3bn. The debt in question is ‘problem debt’ – debt which people have created via loan but who do not have the resources to repay. This both requires debt management services to help people overcome their debt; and housing, employment and mental health benefits in the meantime. Those with problem debt require a system of benefits for the government, as well as investment from charities like StepChange to get them into work, and support them during that time. NHS mental health treatment and legal fees were also taken into consideration. Approximately 2.9m people are estimated to have some type of problem debt, and who this require assistance from the government.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.