Fee Removal Set to Expand Access to Debt Relief in England and Wales
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Debt Relief Orders allow people with less than £30k in debt to have it wiped clear after 1 year. The £90 application fee has now been removed in England and Wales.
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The removal of the fee is expected to help many more people clear unmanageable debts as the cost was previously unaffordable for people in severe financial difficulty.
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Debt charities welcome the change but are concerned support services may struggle to meet higher demand.
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The number of Debt Relief Orders granted has jumped 60% in January 2023 compared to January 2022, showing increasing reliance on this form of debt solution.
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Case studies in the article show how the £90 fee has previously prevented people in poverty from applying, leaving them struggling with anxiety over debt recovery action.