Credit reference agency Equifax UK has issued a call to the lending industry to work together in tackling critical financial challenges facing UK consumers. In an open letter published alongside its 2025 Financial Health Report, Equifax emphasizes the urgent need to address the £20 billion unclaimed benefits gap, promote earlier debt engagement, and combat economic abuse to foster a more inclusive and resilient financial environment.
Drawing on analysis from its latest report, Equifax highlights that five years after the COVID-19 pandemic, low-income households are still leaving behind billions of pounds in unclaimed financial support, underscoring persistent barriers to financial inclusion. The report also reveals that nearly one in five UK women experienced economic abuse in the past year—an often-overlooked form of domestic abuse involving the controlling of a partner’s finances, which can cause long-term financial dependence and instability. Equifax advocates for industry-wide adoption of best practices, such as Policy in Practice’s ‘Apply Once’ initiative and the Economic Abuse Evidence Form (EAEF), to standardize responses and better protect survivors.
The agency’s letter stresses the importance of investing in financial education to increase awareness of unclaimed benefits and economic abuse, reshaping early debt intervention strategies, and developing innovative, data-driven tools to support vulnerable consumers. “In order to create a more inclusive financial ecosystem, we must collaborate, share knowledge, and adopt industry-leading practices,” said Craig Tebbutt, Chief Strategy and Innovation Officer at Equifax UK.
The call to action comes amid mixed signals about the nation’s financial health. While some consumers are managing better than expected despite the ongoing cost-of-living pressures—partly due to COVID-19 related debt repayment efforts—overall credit card debt has now surpassed £70 billion, up 4.5% from pre-pandemic levels. Furthermore, 2024 saw 36% of consumers using Buy Now Pay Later (BNPL) services, highlighting shifting borrowing behaviors and the need for careful policy consideration.
Paul Heywood, Equifax’s Chief Data and Analytics Officer, underscored the importance of data and technology in shaping a fairer financial future: “While there are signs of resilience, many consumers remain on the edge, uncertain of how fluctuating interest rates and emerging debt options like BNPL will impact their financial stability. The industry must do more to support those in need, now and in the future.”
As the UK navigates a climate of economic change, Equifax is committed to partnering with lenders, policymakers, and consumer advocates to foster innovation and build a more inclusive financial landscape for all.
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