Twenty years on, Suffolk charity says the cost of survival, not borrowing, is driving debt
They're seeing more and more people needing their help
The cost of surviving—not borrowing—is now driving people into debt, according to a Suffolk charity which says the financial pressures facing households have fundamentally changed over the past 20 years.
REACH Community Projects in Haverhill says it is increasingly supporting people who are falling behind on essential household bills such as gas, electricity, water and council tax, rather than the credit card debts that once dominated its caseload.
"They just can't make ends meet"
Speaking to us, Chief Executive Henry Wilson said the biggest change he has witnessed since beginning his career in debt advice more than two decades ago is the type of debt people are carrying.
"Twenty years ago, credit cards were the big debt that I dealt with," he said.
"These days it's not so much credit cards. It's ordinary necessities like utilities, like water and council tax.
"They're buying their food, but they're not paying the bills."
The charity's latest annual report suggests those pressures are being reflected in demand for its services. It says the number of cases it handled increased by 15% over the past year, rising from 2,168 to 2,487, while the number of people it supported grew by 19% to 4,905.
Mr Wilson said the charity is also seeing increasing numbers of people in employment seeking support, with some returning after previously getting their finances back on track.
"We get more people coming to us in work," he said.
"My colleague mentioned that someone called in who we'd helped two years ago, and unfortunately they haven't needed our help for two years, and now they're having to call again because they just can't make ends meet."
Despite the increase in demand, Mr Wilson said REACH's aim is to address the causes of financial hardship rather than simply respond to emergencies, helping people maximise their income and become financially resilient. The charity's annual report says helping people out of hardship, preventing future financial crisis and advocating for change are among its core priorities.
Nearly 50 people debt free in one year
Last year, REACH helped local people secure £1,340,891 in previously unclaimed benefits and supported 136 families with debts totalling almost £1.4 million.
The charity also supported 2,487 cases last year, compared with 2,168 the previous year. During the same period, it helped 47 people become debt-free—more than the total number of clients Mr Wilson supported during his first year working as a debt adviser more than 20 years ago.
Mr Wilson said many people remain unaware of the financial support available to them or are reluctant to ask for help, despite being eligible.
"It's actually convincing them that they probably would qualify for help," he said.
"Most of them will say, 'Oh no, there's much more people worse off than me.' But it makes such a massive difference in their lives."
A spokesperson for the Department for Work and Pensions has been approached for comment.
Government response
A Government spokesperson said:
“We’re determined to turn the tide on poverty after years of rising hardship. Our recent statistics show that effort is beginning to make a difference - household incomes have risen 5% in real terms, food bank usage has fallen, and food insecurity is down.
"But our work is just beginning which is why we've cut VAT on electricity to give families breathing space, saving people £45 on top of the £150 already taken off bills at the last Budget. Alongside this, we’re increasing the National Minimum Wage and delivering the first ever sustained above-inflation increase to Universal Credit to help with everyday costs.”
Background:
At the Autumn Budget, we committed to taking money off energy bills to tackle the cost of living. We will do so by taking £150 of costs off energy bills for the years ahead.
This government is giving free school meals to every single child from a household that claims Universal Credit – a historic step backed by over £1 billion in funding that will lift 100,000 children out of poverty.
That is alongside expanding childcare and rolling out free breakfast clubs across the country and giving parents back up to 95 hours a year and saving them £450.
As part of the £200m HAF programme, local authorities are expected to offer the equivalent of 6 weeks HAF provision to eligible children and young people during the Easter, summer and winter school holidays.
In a recent survey of over 20,000 parents and carers, more that 90% of responses said the HAF programme had helped them worry less about money during the holidays and made it easier for them to work.
The Government wants all pensioners to get the support they are rightly entitled to and thanks to our biggest ever Pension Credit take-up campaign, we have seen an additional 33,500 Pension Credit awards in 2025, worth on average £87 a week, compared with the previous year.