New research from the Financial Conduct Authority (FCA) has found that while many are struggling to meet financial commitments, the picture has improved over the last year.

The regulator found 7.4m people were struggling to pay bills and credit repayments in January 2024, down from 10.9m in January 2023. This is still higher than the 5.8m recorded in February 2020, before the cost of living squeeze began.

As the FCA confirms stronger protections for borrowers, the regulator is reminding those in financial difficulty to:

  • Contact your lender for support if you’re worried about keeping up with payments. Talking to your lender about your options won’t impact your credit score.
  • Visit MoneyHelper for tips on living on a squeezed income and to find free, expert debt advice.

Over 5m (5.5m) people said they had fallen behind or missed paying one or more domestic bills or credit commitments in the previous 6 months from January 2024. This was down from 6.6m people a year earlier.

In the 12 months to January 2024, 2.7m adults sought help from a lender, a debt adviser or other financial support charity because they found themselves in financial difficulty. Nearly half (47%) of those that sought help said they were in a better position as a result. However, 2 in 5 adults who had fallen behind on their bills said they had avoided talking to their lender about their finances.

Renters, single adults with children, adults from a minority ethnic background and people living in the north-east of England were more likely to be in financial difficulty.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Commenting on this, FCA executive director of consumers and competition, Sheldon Mills, said: “Our research shows many people are still struggling with their bills, though it is encouraging to see some benefitting from the help that’s available.

“If you’re worried about keeping up with payments, reach out to your lender straight away. They have a range of support options and will work with you to agree the best one for you. You can also find free debt advice through MoneyHelper.”

The FCA has further reminded financial firms they ‘must support their customers and work with them to manage payment difficulties’. The regulator has cracked down where firms haven’t met its expectations, securing nearly £60m in compensation for 270,000 customers.

The FCA has also confirmed stronger protections for borrowers. It is making permanent the expectations on lenders to support borrowers in difficulty, which were introduced during the pandemic, with additional targeted changes designed to improve outcomes for consumers.