KEY THEMES+ ¦ DEMSA Summary

What you need to know this week

  • Sarah Breeden highlighted the risk of multiple shocks crystallising at the same time, including a macroeconomic shock, loss of confidence in private credit, and AI or other valuation readjustments.
  • StepChange reported that 89% of clients started their debt advice journey digitally in March 2026.
  • StepChange clients completing debt advice reached 16,349 in March 2026, up 7% on February 2026 and 20% on March 2025.
  • StepChange reported that 27% of clients presented with deficit budgets in March 2026.
  • StepChange’s utilities research found that 45% of GB adults were worried about their ability to pay energy bills over the next 6 months.
  • The FCA’s International FinTech Forum included the launch of the Innovation Insights 2025 report.
  • Scottish Statutory Debt Solutions 2025/26 data was highlighted, with specific focus on DPP under DAS and relevance to DMPs and potential SDRPs.
  • The Tell Me Once Twenty report maps UK Tell Us Once initiatives across five focus areas, with emphasis on responsible action on shared vulnerability and support information.
  • PS26/6 sets out Phase 1 SM&CR reforms, with some changes taking effect on Friday 24 April 2026.
  • FCA commentary on authorisations stated that good professional support sets clear boundaries, holds clients to high standards, and takes a long view.
  • IE Hub and IncomeMax reported 789 referrals, 775 benefit checks completed, and over £1m in potential income uncovered.
  • The VRS conference is on 7 May 2026 in Nottingham; the Tell Me Once Twenty webinar is on 14 May 2026; and the AI Implementation Forum is on 25 June 2026 at BSI offices in Milton Keynes.

Key Themes

Macroeconomic risk and financial resilience

  • The text highlights concern that stock markets may not fully reflect risks facing the global economy, including the potential for multiple shocks to crystallise together.
  • This matters for financial services, credit management and debt collection because macroeconomic pressure, valuation shocks and reduced confidence can affect consumer resilience, arrears levels and firm risk appetite.

Debt advice demand and consumer affordability

  • StepChange reported higher debt advice completions in March 2026, with digital access remaining the dominant channel.
  • The text highlights deficit budgets, credit card debt, reduced income or benefits, and use of credit to cover living costs as key indicators of customer pressure.
  • This matters because firms need to monitor affordability, vulnerability and sustainable repayment capacity across customer portfolios.
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Essential services debt and utilities pressure

  • StepChange’s Plugging the Gap research estimates that 45% of adults are currently worried about energy bills, with increased concern since January.
  • The text also references water bill worries and customer action to reduce spending on energy and water.
  • This matters because essential services debt can interact with consumer credit arrears and requires careful segmentation, support pathways and vulnerability-aware collections.
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See also  KEY THEMES+ ¦ DEMSA Newsletter

Innovation, FinTech and AI adoption

  • The FCA International FinTech Forum covered innovation, growth and the launch of the Innovation Insights 2025 report.
  • The text also references AI-enabled support for vulnerable customers, including voice and AI-assist tooling in regulated environments.
  • This matters because firms adopting AI need to consider governance, evidence-led implementation, customer outcomes and support for high-emotion, high-urgency and high-complexity interactions.
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Scottish statutory debt solutions and potential wider relevance

  • The text highlights Scottish Statutory Debt Solutions 2025/26, with specific focus on DPP under DAS.
  • It links current Scottish trends to wider UK DMP considerations and the potential relevance of SDRPs in England and Wales.
  • This matters because statutory debt solution design affects debt advice, repayment plans, creditor engagement and customer outcomes.
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Vulnerability data sharing and Tell Me Once Twenty

  • The Tell Me Once Twenty report maps UK Tell Us Once initiatives across common essential services, bereavement, health and social care, retail leisure and transport, and work or higher education.
  • The text links the report to vulnerability information sharing, responsible firm action, the FCA and ICO joint statement, and Consumer Duty Board reporting.
  • This matters because firms need clear governance for disclosed and consented vulnerability data, with an emphasis on inclusive design, co-design and product assurance.
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SM&CR reform, conduct and governance

  • PS26/6 sets out Phase 1 changes to SM&CR, including criminal record checks, the 12-week rule, Statements of Responsibilities, certification, regulatory references, Conduct Rules and enhanced firm thresholds.
  • The text links the reforms to non-financial misconduct changes from September 2026 and the need for Board-level review.
  • This matters because firms may need to update governance, accountability maps, certification processes, outsourcing oversight and workforce conduct arrangements.
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Authorisations, consultants and regulatory preparation

  • The text highlights FCA commentary on the role of third-party consultants in authorisation processes, including applications, variations of permissions, changes in control and changes in SMF roles.
  • It identifies clear boundaries, high standards and horizon scanning as characteristics of good professional support.
  • This matters because regulatory change, AI governance, Deferred Payment Credit, outsourcing and distribution chains increase the need for robust evidence, governance and senior management clarity.
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See also  KEY THEMES+ ¦ DEMSA Summary

Collaboration and income maximisation

  • IE Hub and IncomeMax reported measurable outcomes from embedded financial support, including benefit checks and additional income identification.
  • The text positions the partnership as support for affordability conversations, engagement and trackable social value outcomes.
  • This matters because income optimisation can support affordability assessment, customer engagement and sustainable outcomes for customers in financial difficulty.
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Events and implementation agenda

  • The text lists upcoming activity including the VRS conference on 7 May 2026 in Nottingham, the Tell Me Once Twenty webinar on 14 May 2026, and the AI Implementation Forum on 25 June 2026 at BSI offices in Milton Keynes.
  • The AI Implementation Forum will align ISO 42001 and ISO 22458, with themes including governance, standards and practical implementation.
  • This matters because the events reflect continued sector focus on vulnerability, data sharing, AI governance and implementation standards.
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Key Statistics

  • 89% started their debt advice journey digitally (online).
  • ‘Debt consolidation’ was the second most commonly viewed debt information page.
  • The number of StepChange clients completing debt advice in March 2026 was 16,349.
  • March 2026 debt advice completions were 7% higher than February 2026.
  • February 2026 debt advice completions were 15,262.
  • March 2026 debt advice completions were 20% higher than March 2025.
  • March 2025 debt advice completions were 13,648.
  • 27% presented with deficit budgets.
  • 8% named ‘reduced income or benefits’ as their main reason for debt.
  • ‘Reduced income or benefits’ was 2% lower than March 2025.
  • 9% named ‘need credit to cover living costs’ as their main reason for debt.
  • ‘Need credit to cover living costs’ was 2% higher than March 2025.
  • 7% named ‘need credit to cover living costs’ in March 2025.
  • 71% of clients held credit card debt in March 2026.
  • Credit card debt was 1% higher than February 2026.
  • 70% of clients held credit card debt in February 2026.
  • Credit card debt was 5% higher than March 2025.
  • 66% of clients held credit card debt in March 2025.
  • 45% of adults are currently worried about their energy bills.
  • 45% of GB adults were worried about their ability to pay energy bills over the next 6 months.
  • 29% were worried about their ability to pay energy bills when polled in January.
  • 58% have personally taken action in the last 3 months to try and reduce spending on their energy bill.
  • 74% of those worried about their ability to pay energy bills have personally taken action to try and reduce spending on their energy bill.
  • 28% in England & Wales are worried about their ability to pay their water bills.
  • 41% of those with a water meter have personally taken action to try and reduce their water spending.
  • Tell Me Once Twenty covers 5 focus areas.
  • PS26/6 changes include some measures taking effect on Friday 24 April 2026.
  • Non-financial misconduct changes take effect in September 2026.
  • The FCA’s long-term plan covers 2025-2030.
  • The FCA activity plan covers 2026/27.
  • Duty Board reporting is due in July 2026.
  • 789 referrals were generated by the IE Hub and IncomeMax partnership.
  • 775 benefit checks were completed.
  • 92% of cases identified additional income.
  • £1m+ in potential income was uncovered.
  • £58k+ was already confirmed across households.
  • A single case identified over £21,000 in annual income.
  • LinkedIn Live took place on 24/4/2026.
  • The next event is 1 May 2026.
  • The VRS conference is on 7 May 2026.
  • The Tell Me Once Twenty report webinar is on 14 May 2026.
  • The AI Implementation Forum is on 25 June 2026.
See also  KEY THEMES+ ¦ DEMSA Newsletter

Newsletter Contents

  • Market risk commentary from the Bank of England’s deputy governor is included in the general update.
  • StepChange March 2026 client data shows increased debt advice completions and continued digital engagement.
  • Utilities affordability is presented as a growing pressure point for households.
  • The FCA International FinTech Forum covered innovation, growth and evidence-led policy engagement.
  • AI-enabled support for vulnerable customers is discussed through the FourNet and ContactBabel research.
  • Scottish statutory debt solution statistics are referenced with focus on DPP under DAS.
  • The Tell Me Once Twenty report is positioned around cross-sector vulnerability and support data sharing.
  • FCA and ICO alignment is referenced in relation to vulnerability, consented data and consumer outcomes.
  • PS26/6 outlines Phase 1 reforms to SM&CR and implications for firms.
  • FCA authorisations commentary addresses the role of consultants in application and permissions processes.
  • The IE Hub and IncomeMax partnership illustrates income maximisation outcomes for customers.
  • Upcoming events cover vulnerability, data sharing, AI governance and implementation standards.

Links

Find the full DEMSA newsletter, commentary and links here

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