Debt and The Dignity Deficit:

More people are being pushed into debt because they’re living in negative budgets, where income no longer covers essential bills. 

This isn’t reckless spending. It’s not being able to afford the basics, then being hounded by creditors and debt collectors: relentless letters and calls, escalating fees, and threats instead of solutions. 

For many people, debt is not the result of poor choices. It is the result of systems that fail to provide enough to live on, protect people when things go wrong, or respond with compassion when pressures build. 

The Change we need

Debt should never strip people of dignity, but it does and becomes an all-consuming burden when it doesn’t have to be. 

We’re calling for: 

• An end to rapid and escalating debt collection from local and central government, including the speed of escalation, additional fees, and regulation of enforcement powers. 

• In Scotland, introduce a clearer payment break or pause mechanism, with no fees or interest during that period and include welfare debts 

• In England and Wales, include welfare debts in Breathing Space 

• Ensure the welfare system covers the essentials