Drowning in Debt: Why we urgently need sustainable funding for debt advice

Christians Against Poverty (CAP) have just released our latest briefing, Drowning in Debt, and I cannot overstate the urgency of what we’re seeing.

Demand is rising. Client needs are intensifying. And the funding that underpins debt advice — especially for those in the greatest need — is drying up.

Whether you’re reading this as a creditor, parliamentarian, debt advice organisation or anyone else, the situation is bleak and only set to get bleaker. 

It’s a perfect storm. We’re seeing people coming to us later, sicker, and more desperate. Almost half of our clients (47%) are in deficit budgets, with an average shortfall of £283 every month. One in two told us they’d considered or attempted suicide before getting help. The combination of economic pressure, social isolation, and dwindling safety nets is pushing people to breaking point.

But it’s not just individuals who are under strain — so is the debt advice sector itself. At CAP, we’re facing the reality that the traditional funding model many of us have relied on, Fair Share contributions, simply no longer works in the same way. In 2019, we received £660,000 through Fair Share. By last year, that had dropped to just £175,000. That’s not a slow decline. That’s a cliff edge.

Why? In part it’s because the people we’re helping are no longer able to repay their debts. In 2019, 37% of our clients became debt free through a Debt Management Plan. In 2024, just 24% did. Most are now going through insolvency routes like Debt Relief Orders or Bankruptcy, a reflection of just how financially precarious their situations are.

Our model at CAP is intentionally built to reach those the system often misses, people living with multiple, overlapping challenges: mental ill-health, trauma, digital exclusion, family breakdown. And for them, face-to-face support isn’t just preferable. It’s essential.

It’s the visit at home that helps someone open post they haven’t touched in months. It’s the presence of a compassionate debt coach that breaks through shame and fear. And it’s that trust, built person-to-person, that often makes the difference between giving up and getting help.

But this kind of service is labour-intensive. It takes time, staff, training, infrastructure, and funding.

That’s why this briefing is more than just a snapshot of the problem. It’s a call to action.

We’re asking policymakers and funders to act now:

• Expand and sustainably fund free, FCA-authorised, in-person debt advice, especially for those who can’t access help online or over the phone.
  

• Broaden the base of funders — it can’t just be creditors anymore. We need the energy and water sectors at the table too.
  

• Ensure people have access to a liveable income, so that budgeting isn’t just an exercise in cutting back, but a path to stability.
  

• Invest upstream — in money coaching, life skills, and financial education that can help people build resilience before crisis hits.

• We know we’re not alone in seeing these trends. Colleagues across the advice sector will be facing similar challenges. What we’re calling for isn’t just about CAP, it’s about building a sustainable system that can support the growing number of people being pulled under by poverty and debt.

We hope this briefing resonates, and we’re keen to connect with others in the sector who want to push for change together. Because if we’re serious about reaching the most vulnerable, we need to be serious about resourcing the services that do exactly that.