StepChange reacts to measures announced in the Budget

^{26 November 2025}

StepChange Debt Charity reacts to measures announced by the Chancellor today in the Budget, all is attributable to Vikki Brownridge, CEO at StepChange:

Two child limit removal

“Today’s announcement of the removal of the two-child limit is an immediate, cost-effective way to lift hundreds of thousands of children out of poverty. It is a decisive move that will reduce the risk of debt-related harm and ease pressure on thousands of families across the UK. Parents with more than two children, and single parents especially, are hit hardest by debt problems and struggle to keep up with essential bills. In 2024, one in ten StepChange clients (11%) had more than two children compared to 4% of UK households. So, this announcement is warmly welcome.”

Expansion of the Help to Save Scheme

“Help to Save is a vital policy for building financial resilience amongst some of the those with the lowest incomes, and something StepChange has campaigned for. So, we’re pleased to get confirmation that the scheme will be expanded and made permanent. With over one in four StepChange clients being single parents, and knowing the financial impact of being a carer, any extension to help more people build rainy day savings – which can be what it takes to weather income shocks and avoid problem debt – is welcome.

“There’s more that can be done, though. As it stands, take up of the scheme remains low, with just one in ten of those eligible using it. This means that many people are missing out on the support and the chance to build a meaningful income. We’d like to see auto-enrolment to Help to Save introduced, in a similar manner to pension auto-enrolment, to ensure all those who can benefit from the support can get it.”

Rise in Council Tax

“News today that the OBR and Government expect council tax to rise 5% in April is unsurprising but yet another hit to households struggling to manage the rising cost of living.

“Council tax has become increasingly unaffordable, as we have seen arrears among StepChange clients double since the pandemic – the average council tax debt for our clients now stands at over £2,000 per client. Outdated regulations enable aggressive debt collection practices which exacerbate debt and leave households with little room to repay. The Government must act quickly to make the collection system fairer and more attuned to the difficulty millions of households are having in meeting their bill. The Government’s review of council tax collections must quickly bring in measures to address this.”