It says that while banks and building societies are making positive progress by working together on inclusive solutions, significant barriers remain compounded by systemic issues.

A key root cause includes the ‘overhearing gap’ – the disadvantage faced by many deaf people who grow up without a shared language at home and worsened by the lack of consistent access to funded provision of BSL for families. With 90 per cent of deaf children born to hearing parents, everyday communication and incidental learning are often inaccessible from an early age.

ActionAble’s new Deaf Equity in Financial Services Report, published by ImpactMatch in partnership with deafPLUS, Signing Banks UK and Nationwide, combines industry insight with the lived experience of BSL users to show what is changing – and what must change next – to deliver deaf equity and help improve financial lives of deaf people.

The report highlights encouraging progress, with the Deaf Inclusion Industry Group (DIIG), founded from within the banking sector itself – growing from seven to 42 financial organisations – a 500 per cent increase since 2022 – and video interpretation services increasing by 30 per cent in that time. However, money management and debt outcomes remain unequal for many of the 18 million people in the UK who are deaf, have hearing loss or tinnitus², as hearing-centric systems and attitudes continue to disadvantage deaf people.

The report finds these challenges begin early, with only 34 per cent of deaf pupils achieving a Grade 5 in English and Maths in 2024, compared with 46 per cent of other pupils. It also shows that 60–70 per cent of deaf service users did not use, or were unaware of, accessibility services such as Video Relay – highlighting that access alone is not enough.

Rather than calling for the creation of isolated accessibility services alone, the report urges systemic change, including exploring the development of a Deaf Services Code of Practice – building on existing industry codes to support consistency, confidence and accountability across the sector. It also advocates BSL-first communications in high-risk areas, ‘Tell Us Once’ approaches, and embedding co-design with deaf users as standard practice.

Further findings:

• Only 18 per cent of financial institutions provide fraud and scam information in BSL.
• 76 per cent do not monitor fraud or scam risk specifically for BSL users.
• 79 per cent of moneyPLUS cases required third-party support to help with debt or budgeting.
• Communication barriers – particularly where English is not a customer’s first language – remain a key driver of poorer outcomes for some deaf BSL users.
• Embedding deaf lived experience into service design consistently leads to better outcomes for both customers and colleagues.

Kathryn Townsend, Founder and Chair of the Deaf Inclusion Industry Group – and Head of Customer Accessibility at Nationwide, said:

“This report shows the progress that’s possible when the sector listens to and works alongside the deaf community. But when inaccessibility and miscommunication still lead to exclusion and debt, it’s clear hearing-centred systems continue to fall short. Deaf equity means designing services with deaf customers, not around them. Nationwide is proud to be leading that shift through its actions on deaf inclusion and in working with others across the industry to accelerate progress towards deaf equity.”

Sara Weller CBE, Co-Founder of ActionAble, said:

“True disability inclusion is a growth strategy, not just a social obligation. With 25% of the UK identifying as disabled, ActionAble is working directly at board level to reframe this ‘Disability Dividend’ as a primary driver for innovation and market leadership. Leveraging the rigorous data analysis provided by ImpactMatch, we are proud to partner with Nationwide, the DIIG (Deaf Inclusion Industry Group), deafPLUS and Signing Banks UK to turn lived experience into actionable commercial intelligence. This report challenges leaders to see accessibility as the foundation of their ambition, and we are committed to sharing these insights with the C-suite to accelerate a more equitable industry growth strategy and future for everyone.”

Reg Cobb, CEO of deafPLUS:

“This report matters because it brings into focus something that is too often overlooked. For deaf British Sign Language (BSL) users, the challenges around money don’t begin when they try to access a service, they begin much earlier.”

Read the full report.

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The paper’s authors, which include Sharon Collard of University of Bristol Personal Finance Research Centre, say that problem debt is a systemic driver of homelessness. Across the evidence, a consistent picture emerges: debt is a key mechanism through which structural pressures become housing crises:

• Rent arrears, Council Tax debt and utility arrears are the most significant debt types, carrying severe and often rapid enforcement consequences that push households from financial strain into acute crisis.
• Once homelessness has occurred, existing debts and the accumulation of new ones can entrench housing insecurity and delay or prevent recovery.
• Debt rarely occurs in isolation — low-income renters typically manage multiple overlapping arrears, often forced to deprioritise rent not through poor financial management, but because the system demands impossible choices between essentials.
• The relationship between debt and homelessness is cyclical: debt damages mental and physical health, reducing people’s capacity to engage with landlords and services; homelessness in turn generates further debt through higher living costs and disrupted benefits.
• Some groups face acute and distinct risks — people with disabilities, single parents, young people, and survivors of domestic and economic abuse experience debt pathways shaped by benefit inadequacy, income volatility and, in some cases, coerced or historic debts.
• Targeted, downstream support alone cannot offset these structural risks in the absence of wider system reform.

The evidence is clear that problem debt is not a peripheral issue but a central mechanism through which structural pressures translate into homelessness. The paper states that preventing homelessness therefore requires acting not only on housing, but on the systems that generate and manage debt.

National recommendations: addressing the structural drivers of debt and homelessness

• Increase the adequacy and stability of incomes, particularly for low-income renters facing volatile earnings and benefit deductions.
• Align housing support with real rental costs, reducing structural shortfalls that drive rent arrears.
• Reform public sector debt enforcement to incorporate affordability and vulnerability, moving away from approaches characterised by rapid escalation toward more sustainable resolution.

Evidence on public sector debt collection raises concerns about approaches that rely on escalation without sufficient consideration of affordability or vulnerability. The report says that there is therefore value in testing how alternative enforcement approaches, and different balances of income support and debt reduction, affect both financial recovery and homelessness outcomes.

‍Local recommendations: embedding prevention across systems

• Use integrated administrative data as an early warning system for housing risk.
• Align revenue collection, welfare support and homelessness prevention around shared outcomes.
• Prioritise early intervention and resolution, rather than escalation through enforcement.
• Develop targeted approaches for groups facing the highest and most complex risks.

It is suggested that testing could usefully focus on how early warning systems translate into action, including the timing, intensity and form of intervention that most effectively prevents escalation.

Service delivery recommendations: making support accessible, timely and joined-up

• Integrate debt advice, housing support and income maximisation, reducing fragmentation.
• Intervene earlier and more flexibly, before problems become entrenched.
• Ensure services are accessible, trauma-informed and responsive to complexity.
• Enable frontline staff to resolve problems collaboratively, rather than defaulting to enforcement pathways.

‍Research and evaluation recommendations

The evidence base is strongest on why debt drives homelessness, and weaker on which interventions work best to prevent it. The paper says that research should therefore prioritise the testing of:

• data-led early warning and prevention approaches
• alternatives to standard enforcement models
• targeted debt relief as a prevention tool
• integrated service delivery models

Across all levels, the evidence supports a shift from responding to crisis toward earlier, prevention-focused and system-aligned approaches. The paper says that delivering this will require not only policy and practice change, but a sustained commitment to learning what works, for whom, and at what cost.

Find out more and read the full paper here.

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Funded by the Money & Pensions Service (MaPS), ‘Exploring Safe & Effective Self‑Serve in Regulated Debt Advice in the Generative AI Era’ lifts the lid on how AI‑enabled tools might support earlier engagement, improve access and reduce adviser burden. But it also highlights deep structural complexities, widespread vulnerability and a public trust gap that mean self‑serve AI cannot simply be ‘switched on’ without robust safeguards.

The result of the research carried out with sector professionals and consumers from January to March 2026 is a sector‑first, sector-led evidence base; a Safe‑Use Framework for Gen AI in Debt Advice; and a suite of practical tools for organisations exploring AI adoption.

The Safe-Use Framework encompasses a three-level Debt Advice AI Roadmap, giving the sector a shared vocabulary for both current applications and future developments. This could also be used by regulators to develop proportionate guidance that supports innovation while maintaining consumer protection.

Mark Pearce, CEO and Founder of Wyser, comments:

“What this research makes clear is that the debt advice sector’s expertise must drive how Gen AI tools are built, not the other way round. AI can help, but only if we focus first on where it adds genuine value: cutting the admin that consumes adviser time and extending reach through carefully designed self-serve tools for the right clients at the right moments.

“It’s been a pleasure to collaborate with MALG and the wider debt advice sector on this project. The resources we’ve created aim to help organisations navigate the fast‑moving AI landscape without compromising client safety or advice quality. We see this as the starting point, not the finish line, and we are keen to support organisations in taking the next steps from evidence into implementation.”

Peg Alexander, CEO, Money Advice Liaison Group (MALG), says:

“We’re proud to have led on this ground-breaking piece of research, which is hopefully just the beginning of a longer-term project to ensure that the debt advice sector can keep pace with the rapidly evolving world of Generative AI while maintaining the principles on which it is built.

“Many organisations are operating with sustained pressure from rising demand and complexity but the sector’s structural challenges, the prevalence of deficit budgets, decreasing funding of free advice services, the administrative burden of regulatory compliance and the attrition of experienced advisers, cannot be solved by technology alone. We’re committed to leading on a collaborative way forward, working with stakeholders across the whole debt landscape.”

Anna Hall, Corporate Director for Debt Advice, Money and Pensions Service, adds:

“Through the Debt Advice Transformation Fund, we’re looking to support the sector to adapt, improve and respond to emerging challenges by testing ideas, building evidence and developing shared understanding.

“What made MALG’s proposal stand out was that it didn’t start with a solution; it started with practice reality, with the aim of helping the sector move forward thoughtfully and not just reactively. It has given us a shared evidence-based understanding of what the safe and appropriate use of AI actually looks like in a regulated debt advice environment, laying the foundations for future development across this sector.”

Key Findings:

1. Debt advice is too complex for simple automation

The study confirms what advisers have long known: regulated debt advice relies on layered assessment, professional judgement and relational skills honed over years. Gen AI cannot yet replicate the nuanced decision‑making required across benefits, housing, enforcement and safeguarding.

2. Vulnerability is everywhere – and often invisible at first contact

Advisers stressed that hidden vulnerability typically emerges only after trust is built. While AI may support low‑complexity tasks, it must not undermine the development of human expertise or miss critical red flags.

3. Most clients arrive in crisis

From bailiff action to court letters, people often seek help at breaking point. Participants questioned whether AI tools could safely de‑escalate crises, especially when a confidently wrong answer could cause harm.

4. Debt rarely exists alone

Housing, benefits and debt issues are deeply intertwined. Self‑serve tools that focus narrowly on debt risk missing wider stabilisation needs, particularly given high drop‑off rates between advice types.

5. The financial statement remains the ‘beating heart’ of advice

Budget construction requires challenge, interpretation and future‑risk assessment. While AI can gather initial information, advisers were clear: strategic budgeting still demands human judgement.

6. Advice is a relationship, not a transaction

Debt advice often spans months or years. Follow‑up with creditors, reassurance and re‑evaluation are core to the role – and difficult to replicate in a self‑serve environment.

7. Client use of Gen AI is lower than expected – but rising

Despite media hype, advisers reported limited client use of AI tools so far. But emerging cases, including AI‑prompted bankruptcy decisions, show the trend is shifting.

8. Public trust in AI for financial issues is low

The YouGov survey revealed that 72% of the public lacks confidence in AI financial advice, and over 80% prefer a human adviser. Regulation and human review were the strongest trust‑builders.

9. The sector is divided – but not resistant

Larger organisations feel urgency; smaller ones are cautious. Across the board, contributors agreed that debt expertise must shape AI design, and that adviser‑assist tools offer the most immediate value.

10. Adviser‑assist AI is the strongest early win

Tools that reduce admin (transcription, case notes, credit report analysis, legislation decoding) received overwhelming support, with 82% of survey respondents rating them suitable now.

11. Self‑serve suitability varies dramatically by organisation

Client bases differ widely. For some organisations, self‑serve may never be appropriate. For others, it could support digitally confident clients effectively. There is no universal model.

12. Accuracy and jurisdictional sensitivity are non‑negotiable

Debt advice changes constantly, and Scotland’s framework is entirely separate. Any AI tool must have robust update mechanisms and clear routing to avoid outdated or incorrect guidance.

-ENDS-

Find out more and download the evidence report and resources at: https://malg.org.uk/genai_debtadvice_research/

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‘Tell Us Once’ (TUO) is a simple idea – rather than repeating their circumstances and needs to multiple organisations, consumers, including vulnerable and disabled customers, can explain things just once and then get the support they require from that point onwards.

Until now, no-one knew how many TUO approaches were operating in the UK, how they worked or what their strengths and areas for improvement were. Reflecting a fragmented and unconnected landscape of TUO initiatives, the report argues that calls to create one single TUO system are too ambitious at the current time.

Instead, Money Advice Trust contends that we should focus on improved sharing – controlled by users – between existing schemes, with three key recommendations:

• The Information Commissioner’s Office (ICO) must consider TUO approaches (despite their UK growth, there is only one reference to TUO in all existing ICO guidance)
• Energy, water, and financial TUO systems must sign-post to each other (so people completing a TUO journey in one sector, can do this for another)
• The Smart Data Council should create the conditions for standardised definitions of the most common support needs (to aid data sharing between firms and sectors)

Read the full report here.

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Ministers have today (April 15) confirmed changes will be made to the administration of bills, which have been left unchanged since 1993 and have become outdated and left people facing unnecessary stress and anxiety.

Under the current system, missing one monthly payment can leave people facing financial ruin as they become liable to pay the entire outstanding sum in a single payment just two weeks later.

This will change from next year with households given 63 days, roughly two months, to settle their bill and a requirement for councils to work with them on a sustainable repayment plan.

Billing for council tax will also be shifted to 12-month payments by default, rather than the current 10 months, and capping the costs which councils can charge when seeking a liability order – how councils recover overdue bills – to £100.

Local Government Secretary Steve Reed said:

“Too many families are facing aggressive enforcement action, with people left terrified of bailiffs knocking on the door because one month’s council tax bill was missed.

“We will stop this and make the system fairer by supporting families who fall behind. I want to thank Martin Lewis and his charity for their tireless campaigning, shining a light on this crucial issue affecting millions of people.”

Minister for Local Government Alison McGovern said:

“We know the way council tax is run is outdated and confusing and has stopped some of the most vulnerable people from accessing the support they need.

“Our changes will cut through the complexity and make sure that council tax is fit for the 21st century.

“This follows on from Money Saving Expert Martin Lewis’ campaign with his Money and Mental Health Policy Institute charity to reform the system and escalation that can happen when someone falls behind with their council tax payments.”

Martin Lewis, Founder and Chair of the Money and Mental Health Policy Institute and MoneySavingExpert, said:

“Council Tax debt collection is so aggressive it’d make banks blush. It’s the most vicious and damaging form of legal debt collection out there – causing counterproductive misery for millions. We’ve spent the last 18 months campaigning hard to change this hideous system, and having seen so much pain caused by it, I’m genuinely moved by this huge first step towards making things better.

“Currently, in England, if you miss a monthly payment, many councils, usually within three weeks, demand payment for the entire year. How people who can’t find a month’s money are expected to find a year’s I don’t know. Yet if they can’t pay, within just three more weeks, they are often taken to court, have ‘admin costs’ added, and soon see bailiffs sent in. No commercial firm would be allowed to do anything close – constituents are treated worse than customers.

“The new rule from next April means councils must wait two months, not three weeks, to ask for a year’s money, and the ‘admin costs’ will be capped at £100. In a perfect world, it would be even longer and the lower cap would apply, but this is still a hugely welcome change to a 33-year-old process. For councils too, it is worth remembering that this grotesque system is often catastrophic for people’s finances and wellbeing, leaving many needing more help and support, and ultimately the same council having to pick up the pieces.”

Proportionate action will continue to be taken against those who avoid paying council tax, but these reforms will make sure there is more help and support available for people in genuine hardship.

Payments for council tax will be automatically shifted to 12 months by default, but households who continue to wish to pay over 10 months will be able to do so. It means struggling households will be able to spread the annual cost across a longer period.

The government will also update the name and definition of the Severely Mentally Impaired council tax discount when parliamentary time allows, removing the stigma that puts off vulnerable people from seeking the support they are entitled to. Work will be undertaken in partnership with disability charities and local authorities to design a standardised application form and reduce barriers to make the process clearer and improve access to this support.

These reforms build on the wider changes the government has taken to fix the foundations of local government, so that it can once again be an engine of growth This programme on local government reform will ensure that local people can continue to benefit from high quality services.

This includes introducing the first multi-year financial settlement in a decade, giving councils the certainty they need to plan ahead and transform services,  with a 24.3% increase in Core Spending Power for local authorities and nine in ten councils receiving funding that broadly matches their need – up from three in ten, with the government ensuring taxpayers are getting value for money and better services.

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The report, developed through collaboration between leading charities and advocacy organisations including Save the Children UK and partners across the child poverty sector, argues that millions of children are being held back not by lack of ability, but by lack of opportunity. It calls for a renewed national focus on unlocking children’s potential through targeted policy action and investment.

The publication comes at a time when child poverty remains at persistently high levels. Recent figures show that around 4.5 million children in the UK are living in poverty, equivalent to nearly one in three children. (Save the Children UK)

This has profound consequences for children’s health, education and life chances, with wider impacts on communities and the economy. As highlighted in the report, poverty is not only about income, but about restricted opportunities – from missing out on school activities to facing long-term barriers to employment and wellbeing.

At the heart of ‘Potential Not Poverty’ is a shift in narrative: away from deficit-based thinking and towards recognising the strengths, ambitions and talents of children and young people.

The report draws on insights from families and young people themselves, illustrating how structural barriers — including low incomes, insecure work, and rising living costs — limit what children are able to achieve. It emphasises that with the right support, these same children can thrive.

The report sets out a series of recommendations aimed at national and local government, as well as partners across the voluntary and community sector. These include:

• Strengthening social security to ensure families can meet basic needs
• Investing in early years support and education
• Reducing the cost of the school day
• Embedding the voices of children and families in policy design
• Coordinated action across government to tackle the root causes of poverty

These proposals align with wider calls from organisations such as the Joseph Rowntree Foundation and others, who have warned that without sustained action, poverty levels are likely to remain high or increase in the coming years.

Find out more and read the report here.

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The announcement comes as the FCA prepares to set out its final compensation scheme for motor finance customers.

The regulators will step up efforts to share intelligence and continue to take co-ordinated and targeted actions using the full extent of their powers to mitigate harm to consumers. It will take swift action to tackle issues with unsolicited and misleading advertising, meritless claims, multiple representation, and unfair exit fees.

Alison Walters, director of consumer finance and FCA taskforce lead, said:

“Our scheme will be free and people don’t need to use a CMC or law firm. Should they decide to do so, it’s important that they can trust CMCs and law firms to act in their best interests. This taskforce will ensure we deal with problems quickly and decisively.”

Deb Jones, executive director of transformation and the SRA’s taskforce lead, said:

“We want consumers to have confidence in the system. The taskforce is a great example of how we as regulators can use our collective expertise and powers to not only take action, but also to improve consumers’ awareness of the standards they can expect from law firms and CMCs.”

Miles Lockwood, director of complaints and investigations at the ASA, said:

“It’s vital that ads promoting motor finance redress services are clear about the commitments and costs of engaging with a CMC or law firm. The ASA will take robust and proactive action to tackle misleading advertising of such services, working in partnership with other regulators as part of this taskforce.”

Andy Curry, head of investigations at the ICO, said:

“The law is long-standing, clear and simple – do not send unsolicited direct marketing without consent. We provide advice and support to help companies to comply, but where we see unlawful practices causing harm to the public, we will take action to the fullest extent. This is a serious issue, and we will work alongside our taskforce partners, pooling our expertise, knowledge and powers to address it.”

Advice for consumers:

• The FCA’s motor finance redress scheme will be free to use. Consumers do not need to use a CMC or a law firm, and those who do may lose up to 30% of any compensation. If you decide to go through the courts, this may cost you more.
• Don’t sign up to multiple CMCs or law firms to represent you. Doing so may lead to multiple fees.
• Be cautious of potential scammers who may try to contact you via cold calls, texts or emails, claiming you are owed motor finance commission compensation or offering to check eligibility.
• Report nuisance calls and texts to the ICOLink is external and report misleading advertising to the ASALink is external.
• If a CMC is authorised by the FCA and you’re unhappy with how it’s handled your case, find out how to complain.
• If the firm is regulated by the SRA, find out how and where to complainLink is external. Complaints for poor service or excessive fees should first be directed to the law firm, and can then be raised to the Legal Ombudsman.

Read more here.

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The report builds on previous research around the prevalence of coerced debt among UK adults and its debt advice clients, which revealed coerced debt affects an estimated 3% of UK adults – around 1.6 million people.

Coerced debt is a form of economic abuse where the perpetrator coerces a victim into debt, for example by making them take out credit against their wishes. It may impair someone’s credit file where these debts lead to missed payments, defaults, County Court Judgments (CCJs) or other derogatory marks.

YouGov polling of UK adults who have experienced coerced debt shows:

• Around half (48%) experienced at least one negative impact on their credit record, such as a dip in their score, default, or CCJ.
• Around third (35%) said that they were declined for at least one financial product or service, such as a loan or credit card, internet or mobile contract, or a tenancy, mortgage or job, due to problems with their credit rating.

Despite the unrelenting impact of coerced debt on someone’s finances, new figures in the StepChange report show seven in ten (70%) victim-survivors did not seek help with their coerced debts. For many this was due to a fear of judgement – almost half (45%) of this group said this was due to shame and embarrassment, and 30% said they did not know what help was available.

The Government made a commitment in the recent Financial Inclusion Strategy to support a joint industry-sector initiative to improve the way coerced debt is reflected on victim-survivors’ credit files, and StepChange says this must translate into a detailed plan and a concrete timetable as soon as possible.

The charity would like to see firm action from the credit information industry and other stakeholders to develop a unified approach to credit file restoration for victim-survivors of coerced debt. This should sit alongside joined-up action to address other practical and legal barriers to economic justice for victim-survivors.

Vikki Brownridge, Chief Executive at StepChange Debt Charity, said:

“People who have experienced coerced debt are often left with ruined credit records. The knock-on effects can make it much harder to access affordable credit, essential products and services, housing, and even employment opportunities. This leaves people who have faced abuse finding themselves with even more barriers to leaving abusers and rebuilding their lives.

“This is an underreported and not widely understood issue by the general public, and it’s concerning that there could be millions of victim-survivors out there who aren’t seeking help due to stigma, or a lack of awareness of support.

“Impactful, positive outcomes can be achieved for people who’ve experienced coerced debt and economic abuse. Our evidence shows the importance of Government leading multiple sectors to work together to undo the financial harm victim-survivors face.”

Sam Smethers, Chief Executive of Surviving Economic Abuse, said:

“For far too long, victim-survivors have been left paying the price for domestic abusers’ coerced debt. We welcome StepChange’s work shining a light on this issue and the fact that coerced debt puts survivors at risk of homelessness, destitution, and poor credit scores. The impact is felt disproportionately by women, particularly mothers, disabled women, and those who are racially marginalised. Yet far too few seek help, and many face long-term financial exclusion that prevents them from safely rebuilding their lives.

“We’re pleased the Government has committed to improving how coerced debt is reflected on credit files. We are now working alongside government and industry to develop a survivor-centred, trauma-informed solution that must be consistently implemented – and go further. Consistent, good practice responses to coerced debt across the public and private sectors are critical for survivors to achieve safety and freedom.”

Read more and download the report here.

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The 2026–2030 Government Debt Management Strategy outlines how departments will better use data and earlier engagement to help people who fall behind on payments, ensuring repayment plans reflect individual circumstances and remain genuinely affordable. This means people who are struggling will have clearer routes to support and more consistent treatment across government.

Government is owed money for a wide range of reasons — from unpaid taxes and benefit overpayments, to fines, fees and loans. Recovering this money matters because every pound collected helps fund public services that people rely on every day, including the NHS, schools and policing.

The strategy commits government to three principles:

1.    Preventing avoidable debt, using data and early contact to intervene before debts occur or grow.

2.    Resolving existing debt fairly and consistently, with repayment plans that take account of people’s ability to pay.

3.    Improving skills and technology across departments so debt can be managed more efficiently and compassionately.

While strengthening support for people in genuine financial difficulty, the plans also ensure a tough approach to those who intentionally avoid payment or have obtained money through fraud or criminal activity.

Lucy Rigby KC MP, Economic Secretary to the Treasury, said:

“We want to make sure that those who owe money to government are treated fairly and given the chance to pay it back in a way that’s manageable.

“But we’re also being clear: if you’re deliberately avoiding paying what you owe, or you’ve obtained money through fraud, we will seek to recover it. That money funds our NHS, schools and the services people depend on every day.

“This strategy is about doing both of those things properly — protecting taxpayers and supporting people who are struggling.”

The strategy commits to working alongside debt advice organisations and wider debt industry to make sure people know where to turn for help.

Chris Leslie, CEO of the industry trade body Credit Services Association, commented:

“This strategy sets the government on the right course, striking an appropriate balance between standing up for the taxpayers’ best interests, while also recognising that individuals who owe money sometimes require help and flexibility in managing their repayments. Early engagement is being advocated, which will make a real difference in how cases are managed and it is encouraging to see a clear commitment to embracing new technologies and providing specialist support. The Credit Services Association is pleased to see the government taking collections practices seriously and investing in the systems, processes and skills of those handling recoveries – all necessary to ultimately pay for our vital public services.”

Vikki Brownridge, Chief Executive Officer at StepChange, added:

“We welcome the 2026 – 2030 Government Debt Management Strategy and the government’s responsible creditor commitment – embedding fairness principles across government will help this goal, as well as a growing focus on preventing avoidable problem debt.

“At StepChange, we see how problem debt is driven by cost-of-living pressures and financial shocks. So, it’s positive to see the Strategy acknowledge the financial harm and social cost problem debt creates, and the importance of early intervention.

“The principles laid out in this strategy are important steps forward, aligning government debt collection with good practice in other regulated sectors, namely financial services, energy, and social housing.”

The 2026–2030 Government Debt Management Strategy is published by HM Treasury and the Government Debt Management Function and can be found here.

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• A new registration stage to ensure that complaints referred to the Financial Ombudsman are within its scope and ready to be investigated before being allocated to a caseworker.
• New powers to dismiss complaints that are best resolved in other ways, are more appropriate for courts or another dispute resolution process, or where there has been no material financial loss, distress or inconvenience.
• Adapting the current ‘fair and reasonable’ test the Financial Ombudsman applies when considering a complaint to improve clarity, regulatory alignment.

The changes come alongside wider government proposals on reforming the Financial Ombudsman, and mark a significant step in the delivery of a strengthened redress system which is transparent, robust, and fair to all parties in today’s evolving financial landscape.

James Dipple-Johnstone, Interim Chief Ombudsman at the Financial Ombudsman Service, said:  

“The financial sector has changed significantly since the Financial Ombudsman was set up 25 years ago, which is why we are driving forward changes to transform the redress system. We are laying the foundations for an agile, responsive and modern service which is fit for the future and has the confidence of consumers and firms alike.

“Building on improvements we have delivered already these new measures will further modernise our operations to ensure we remain a service which keeps pace with a changing sector in delivering our vital service for consumers and supporting confidence in UK financial services.”

Sarah Pritchard, Deputy Chief Executive at the FCA, said:  

“We want a system that delivers fair compensation fast, while providing greater certainty to businesses so they have the confidence to invest, grow and compete. We’re acting at pace to change what we can within our current powers, ahead of the Government’s wider reforms.”

Currently, the majority of complaints are resolved by firms, and the redress system works well for individual cases that come to the Financial Ombudsman. But high volumes of complaints on specific or novel issues can jam the system and cause significant delays.  Together the measures will ensure the Financial Ombudsman Service is able to focus its resources on the cases it was set up to resolve as a quick and informal alternative to the courts and help ensure that outcomes are clearly aligned with regulation.

Reforms being delivered now, ahead of later planned legislative changes, will help firms address and resolve customer issues more effectively and proactively, escalate major or emerging redress issues earlier, and speed up complaint resolution.

The Financial Ombudsman Service will continue to operate independently, making decisions that are fair and reasonable in individual cases, better aligned to regulatory rules.

The Financial Ombudsman and FCA’s consultation closes on 11 May 2026.

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