Debt levels are rising sharply, and cases are becoming more complex and harder to resolve. The road to debt recovery is long, and impossible for many. These insights highlight the challenges facing people with debt and the need for government action.
Means-tested benefits in Britain are built on the principle that individuals with significant financial resources should use those before turning to the state for help. That’s why wealth – as well as income – is assessed when determining eligibility and entitlement levels for means-tested support. Few would argue that demonstrably rich people should receive equal support from the state than those with less resources to draw on. But although income means-testing has been widely studied and debated, capital means testing has received far less attention.
Thirteen per cent of all 16–24-year-olds in the UK are not in education, employment or training (NEET). This equates to nearly one million young people who are not currently learning or earning. The long-term scarring impact of being NEET for a sustained period of time on young people, society, and the economy, is well known. It is therefore of particular concern that 48% of young people in the UK are still not in education, employment or training a year after they first become NEET, equating to more than 360,000 young people likely to experience the long-term impacts of being out of work or education. A young person’s previous experience of employment matters; 58% of NEET young people in the UK have never had a paid job.
The devastating human rights impact of social security system failures in the UK
7 million people are in some form of water, energy or telecommunications debt, collectively known as utility debt.
The Autism Act 2009 requires the government to introduce and keep under review an adult autism strategy. In 2021, the government published a new autism strategy for 2021 to 2026 including children and young people, alongside adults, for the first time. It focuses on autism awareness, education, employment, health, reducing inpatient care, community support and the criminal justice system.
Over 20 years since they were introduced, tax credits have now been replaced by universal credit. How did they change the UK welfare system?
In March, the government announced its proposals for reforming the welfare system. Plans to reform benefits pre-date this government, but a spiralling benefits bill along with concerns about the long-term impact on the future workforce and economic productivity has hastened action.
New nationally representative polling of people aged 66+ across the UK1 – conducted by Opinium in January 2025 – indicates that many pensioners are struggling with the cost of living, particularly with their energy costs/warming their home.
This briefing provides statistics and forecasts for household debt, guidance on how to interpret debt statistics and analysis on how debt effects the economy.




