Tackling London's problem debt

Household over-indebtedness and problem debt, affects many dimensions of individual well-being (including material living standards, physical and mental health), but also has important social and macro-economic implications. The problem is a priority in London. Problem debt undermines economic growth and productivity. Thus, addressing problem debt and restoring households' financial resilience in London grows in importance. Recent pilot evidence from the Money and Pensions Service suggests that receiving formal debt advice is associated with better outcomes for people with problem debt. However, organisations providing debt advice have identified that there are key evidence gaps; addressing these would help to enhance the effectiveness of their work and contribute to regional economic resilience and weathering the cost of living crisis. Specifically, there are gaps in relation to understanding the characteristics of the population who could benefit from debt advice but who do not currently seek it.

This project involves an intensive period of collaboration with StepChange - a leading debt advice agency in the UK. The aim is to provide the academic expertise they need to enhance the evidence base on which they are basing their services, which will in turn contribute to addressing the key regional economic priority of reducing problem debt.

Duration: December 2023 to March 2024

Funded by UKRI, Regional Innovation Fund .

External partner: StepChange