[INSIGHTS] Financial Health report 2023

In the latest report from TDX and Equifax, some interesting stats around mental health and financial difficulties. Also a little shocked at the volume of unclaimed benefits.


Key Summary Points

  • One in three customers experience outgoings that exceed their monthly income.
  • Mental health and money problems are closely linked, with almost half of consumers in problem debt having mental health conditions.
  • Increased disclosure of vulnerability to debt collection agents indicates the need for tailored support.
  • Mortgage lenders are preparing to assist customers facing mortgage payment increases.
  • Digital services play a role in debt collection, but there is room for improvement.
  • Approximately £18 billion in income-related benefits go unclaimed annually.
  • Social tariffs provided by water companies and telecom providers are underutilized, with only 3% of Universal Credit recipients benefiting from them.
  • Financial education and training are crucial in empowering individuals to manage their finances effectively.

Key Statistics

  • One in three customers have outgoings exceeding their monthly income.
  • Almost half of consumers in problem debt also have mental health conditions.
  • Over 1.5 million people in England are experiencing both problem debt and mental health issues.
  • Approximately £18 billion in income-related benefits go unclaimed each year.
  • Only 3% of Universal Credit recipients have social tariffs for broadband.

Key Takeaways

  • Support for vulnerable consumers, including those with mental health challenges, is crucial.
  • Early intervention and tailored assistance can address complex debt issues.
  • Mortgage lenders should provide support for customers facing payment increases.
  • Digital services in debt collection should be improved to better serve consumers.
  • Efforts are needed to maximize benefit uptake and raise awareness of social tariffs.
  • Financial education plays a vital role in empowering individuals to manage their finances effectively.
See also  [INSIGHTS]: CP23/13: Borrowers in financial difficulty: Consumer credit and mortgages

RO-AR insider newsletter

Receive notifications of new RO-AR content notifications: Also subscribe here - unsubscribe anytime