StepChange Debt Charity provided support to nearly 500,000 individuals in 2022, helping more clients receive full debt advice compared to the previous year, according to the Impact Report for 2022 released today.
In 2022, 171,000 people received full debt advice from StepChange, compared to 158,000 in 2021. Additionally, 312,000 clients utilised the charity’s money guidance or advice tool.
Amidst skyrocketing inflation and heightened financial stress on households, StepChange reached over 2.8 million people and assisted clients in repaying £371m of debt. The charity also helped more than 25,000 individuals become free from problem debt.
The cost of living crisis significantly impacted StepChange clients, becoming the second most common reason for new clients’ debts in 2022. The number of clients with a negative budget also increased, with over 54,000 people contacting the charity for help, a 17% rise from 2021.
StepChange advisors played a crucial role in guiding clients to additional support, such as IncomeMax, which provides free, detailed assessments of clients’ benefit entitlement. In 2022, 87% of clients completing an IncomeMax session saw an increase in their income. StepChange’s online benefits checker also helped over 12,000 clients identify increased benefits totalling £4.6m.
The charity continued to collaborate with partners to develop services that catered to clients’ evolving needs. In 2022, ten partners integrated StepChange Direct, a customisable tool for clients to conduct an online money health check before receiving debt advice, budgeting support, or further assistance from their creditor.
StepChange CEO Phil Andrew stated, “2022 was challenging, both for the clients we serve and for the debt advice sector as a whole, however there is much from the year that we as a charity can look back on with pride.
“With the hard work of our colleagues and the support of our partners we adapted rapidly to a new funding environment, finding the stability needed to begin 2023 in a strong position.
“This will allow us to continue to do what we do best – support our clients and our colleagues and campaign to stop people falling into problem debt. With the cost of living squeeze far from over, free, impartial debt advice is needed more than ever.”
