Nearly seven in ten (68%) of those seeking help from StepChange Scotland are now behind on essential household bills. The report comes as Scottish households face widespread cost increases this month, dubbed ‘Awful April’, intensifying financial pressure across the country.

In one year alone the charity has seen:

• Average energy arrears increase by 20%, from £2,037 in 2023 to £2,431 in 2024.
• Average council tax arrears increase by 24% to £2,538 – significantly exceeding the average cost of a year’s bill.
• Average rent arrears increase by 7% to £1,533, from £1,458 in 2023, with an 11% increase among vulnerable clients, who make up 53% of all clients.
• An overall 5% rise in first-time clients completing full debt advice.

There has been a shift in the profile of a typical StepChange Scotland client with a rising proportion in employment. Over four in ten (42%) clients are now in full time work, a steady rise from 38% in 2020, highlighting that work is no guarantee of a safeguard against financial hardship amid rising living costs.

The charity has seen a worrying trend of hardship deepening for the one in two (53%) clients with additional vulnerabilities. Three quarters (74%) of vulnerable clients are in arrears on their household bills – to an average of £5,425. There has also been a 70% increase in vulnerable clients citing ill health and disability as reason for debt.

StepChange Scotland is calling on the Scottish and UK governments, alongside local authorities, to take action on improving household finances by looking at benefit adequacy and targeted support for those on the lowest incomes.

Sharon Bell, head of StepChange Scotland, said: “These figures lay bare the financial stress that thousands of households in Scotland are under. It’s especially alarming that arrears on household bills are rising fastest among people who are in vulnerable circumstances alongside their debt problems.

“With more people in full time work falling into debt, and debt levels still climbing, it’s clear that the cost of living challenges from the last few years continue to cast a long shadow. We urgently need targeted support and stronger action from government at all levels to prevent hardship from deepening as living costs keep rising.

“Immediate action should include looking at energy debt write off for those with no realistic possibility of repaying and a fairer approach to government debt collection, especially in relation to council tax. The Scottish Government must also take the opportunity of the upcoming Housing (Scotland) Bill to tackle rising rent arrears and introduce stronger protections for tenants in both private and social housing, who are among those most vulnerable to the risks of problem debt.”