New data from Citizens Advice paints a stark picture of the financial distress gripping households across England and Wales. The ongoing cost-of-living crisis has pushed debt levels to alarming new heights, with the charity supporting more than 407,000 individuals with debt issues throughout 2025.
A Surge in Financial Distress
This figure represents a dramatic 44% increase since the onset of the cost-of-living pressures. The scale of personal debt has grown significantly, with average burdens now standing at approximately £8,900. Many people are finding it increasingly difficult to manage priority bills and cover essential living costs, creating a cycle of financial anxiety.
The problem shows no signs of abating. In the first working week of 2026 alone, Citizens Advice dealt with 13,300 people seeking urgent help for debt-related concerns. This persistent demand underscores the severe and ongoing nature of the economic challenges facing ordinary families.
The Lifeline of Breathing Space
Amid this crisis, attention is turning to a vital but underused government initiative: the Breathing Space scheme. This programme offers a crucial 60-day period of legal protection for those struggling with debt. During this respite, enforcement action by creditors is paused, and they are legally prevented from adding further interest or charges to the existing debt.
For individuals receiving treatment for a mental health crisis, these protections are extended for the full duration of their care, plus an additional 30 days. This intervention is designed to silence the relentless pressure of creditor contact, providing much-needed mental relief and the time to work with a professional adviser on a sustainable, long-term financial plan.
Expert Calls for Stronger Support
Anne Pardoe, head of policy at Citizens Advice, emphasised the continuing severity of the situation. "It's clear the cost-of-living crisis hasn't gone away. Millions of people are battling to keep their heads above water," she stated.
Pardoe advocates for simple changes to the Breathing Space scheme to enhance its effectiveness. Proposals include extending the period of protection and implementing firmer rules for creditors, which could help a greater number of people regain financial stability.
The Human Cost of Problem Debt
The stress associated with serious debt is often exacerbated by the constant barrage of communication from creditors. This can feel overwhelmingly oppressive, particularly for those managing pre-existing health conditions.
The relief provided by schemes like Breathing Space is transformative. One woman in her 60s, who faced financial strain after an unexpected veterinary bill, described the dread of hearing the letterbox, knowing it often brought more demands. "It gets to you. I dreaded hearing the letterbox going. It's not on when you're worried about where your next meal's coming from, to be harassed all day," she told advisers. Accessing the scheme allowed her to halt this harassment and safeguard essential services like her energy supply.
How to Access Professional Debt Help
Taking the first step towards a solution involves speaking with a professional debt adviser. To enter the Breathing Space scheme, you must consult with an adviser who can assess your situation and submit the application on your behalf if it is the appropriate course of action. This support is entirely free and confidential.
Advisers are available through several channels:
- The official MoneyHelper website.
- Your local Citizens Advice office.
These experts can also help you check your eligibility for additional benefits, ensuring you receive all the financial support to which you are entitled. "The most important thing to remember is that you're not alone and there is help available," concludes Anne Pardoe.
Preparing for Your First Call
Initiating contact with a debt advisor can feel intimidating, but it is a confidential, non-judgemental, and free service. An initial assessment typically takes 40 to 60 minutes, as the adviser needs a clear understanding of your finances to provide the best guidance.
Having some key information to hand can make the process smoother:
- Your income: Recent payslips, benefit award letters, or pension statements.
- Monthly outgoings: An estimate of spending on essentials like rent, food, and utilities.
- Details of debts: Latest letters or statements from creditors, including account numbers.
- Priority paperwork: Any urgent documents, such as court papers or bailiff letters.
Do not worry if you cannot locate every document immediately. The primary goal is to make the call. Your adviser can assist in filling the gaps later or guide you on obtaining missing information, such as through a free credit report.
If you are struggling financially, remember that specialised charities are ready to help you find manageable solutions. Reaching out is the most critical step towards regaining control and building a more stable financial future.
