Debt charity, National Debtline, has welcomed the Chancellor’s decision to extend the Household Support Fund by six months and abolish fees for Debt Relief Orders, but has cautioned that a longer-term plan is also needed to support struggling households.  

The charity says the measures, as part of the Spring Budget, will bring some welcome relief to households still struggling with the impacts of high costs, including giving more people access to safe routes out of debt. 

However, with energy debt at record levels and council tax set to rise for millions from April, National Debtline is calling for a longer-term plan to help low-income households, including targeted support for people with unaffordable energy arrears and increased access to help with council tax bills. 

David Cheadle, acting chief executive at National Debtline, said: “This Budget contains welcome help for people in debt, but a longer-term plan is needed for struggling households. 

“The Chancellor’s changes to Debt Relief Orders – something we have long called for – will make a significant difference for many struggling households. By removing the fees for these, alongside other eligibility changes, many more people will be able to access this vital debt solution.

“The six-month extension to the Household Support Fund is welcome and will provide an ongoing lifeline to people most in need. However, it is only a temporary solution. And with energy arrears at record levels, and council tax increases on the horizon, a longer-term plan is needed to support people in financial difficulty.

“The government needs to take action now and introduce a Help to Repay scheme to provide desperately needed support to people trapped in energy debt, alongside reform of council tax collection rules to ensure people aren’t pushed further into debt.”