Debt Sector & Charities Unite in Parliament to Reshape UK Finance

LONDON, UK – March 25, 2026 – In the historic halls of the Palace of Westminster, an unusual alliance is challenging the traditional narratives surrounding debt. For the second consecutive year, PRA Group, a global leader in acquiring nonperforming loans, and StepChange, the UK's largest debt advice charity, have brought together a formidable coalition of financial leaders, regulators, and policymakers. Their goal: to fundamentally reshape the UK's approach to financial inclusion and create viable pathways for individuals to rebuild their economic lives after falling into debt.

The policy roundtable, held on March 12 at the House of Lords, signals a significant shift in how the financial industry addresses one of its most complex social issues. By convening a cross-sector dialogue just ahead of Debt Awareness Week, the two organizations are placing the real-world struggles of consumers directly onto the parliamentary agenda.

A Cross-Sector Call to Action

Hosted by Gill Furniss, Member of Parliament and chair of the All-Party Parliamentary Group for Debt and Financial Inclusion, the event was more than a symbolic gesture. It represented a critical forum for leaders from banks, fintechs, credit reference agencies, non-profits, and government bodies to collaborate on tangible solutions. The discussion centered on the UK's national Financial Inclusion Strategy, which was published by HM Treasury in late 2025 and is currently under scrutiny by a Treasury Committee for its scope and potential impact.

This timing is crucial. As the government's strategy begins to take form, the insights from this roundtable are intended to provide an evidence-based roadmap for supporting those in financial distress. The strategy itself already includes pillars focused on tackling problem debt and expanding access to affordable credit, but stakeholders argue that effective implementation requires the kind of deep collaboration fostered at this event.

"I am delighted that PRA Group and StepChange have brought experts and decision-makers together here in Parliament," Furniss stated. "As the government's Financial Inclusion Strategy takes shape, it is vital that key industry players make their voices heard and identify the best ways to support people who are concerned about their finances in the years to come."

Beyond the Score: The Human Cost of Debt

At the heart of the discussion are the findings from ongoing joint research by PRA Group and StepChange. The research delves into the profound, and often damaging, relationship between an individual's credit score and their sense of wellbeing. It reveals that many people tie their credit score directly to feelings of self-worth, control, and their ability to participate fully in society. Access to credit, particularly for emergencies, is seen as a cornerstone of financial stability.

However, the research highlights a critical paradox for those recovering from debt. Even after committing to affordable repayment plans and demonstrating consistent, responsible financial habits, many find themselves trapped. Their past defaults continue to weigh down their credit scores for years, effectively locking them out of safe, affordable finance. They are often left vulnerable to high-cost lenders, perpetuating a cycle of financial instability.

Peter Tutton, director of policy, research and public affairs at StepChange, emphasized the systemic nature of this challenge. "Defaulting on payments can affect credit scores for a long time, even for temporary difficulties. We know that people recovering from problem debt remain financially vulnerable and can be pushed back into financial difficulties by lumpy and unexpected expenses," he explained. "There is a real need for access to safe, affordable credit. So, it is no surprise our survey data shows that people recovering from problem debt would like to improve their credit scores."

An Unlikely Alliance Forging a New Path

The partnership between a company that profits from collecting debt and a charity dedicated to relieving it might seem counterintuitive. Yet, it reflects a growing recognition that the complex problem of financial exclusion cannot be solved in silos. PRA Group's role as a debt acquirer gives it a unique vantage point on the lifecycle of debt and the pressure points within the credit system. StepChange brings decades of frontline experience helping hundreds of thousands of people navigate the devastating consequences of unmanageable debt.

This collaboration aims to bridge the gap between commercial practice and social good, leveraging PRA Group's industry influence and StepChange's deep understanding of consumer vulnerability. By working together, they hope to champion evidence-based policies that benefit both the financial ecosystem and the individuals within it.

"As a trusted partner to banks and lenders with three decades of experience helping customers resolve their debt, PRA Group is proud to work alongside StepChange to advance thoughtful, evidence‑based approaches to financial inclusion," said Owen James, president of PRA Group Europe. "By bringing together voices from across the financial sector, we can help shape policies that ensure people in financial difficulty receive the support and pathways they need to rebuild financially."

Reforming the System: A Wider National Effort

The roundtable is part of a much broader national conversation about the future of finance in the UK. The limitations of traditional credit scoring are increasingly under the microscope. Experts and organizations like Fair4All Finance are actively exploring alternative models that could provide a more holistic view of an individual's creditworthiness. These include incorporating data from rental and utility payments or leveraging Open Banking to assess real-time affordability, offering a path forward for those with thin or damaged credit files.

Regulatory bodies are also responding. The Financial Conduct Authority (FCA) is a key player, with a strategic focus on protecting vulnerable consumers. The FCA is currently consulting on simplifying financial advice to make it more accessible and is a central figure in implementing the government's broader inclusion strategy. Meanwhile, the Money and Pensions Service (MaPS) continues to scale up its financial education and guidance programs, aiming to build financial capability from an early age.

The work of PRA Group and StepChange injects a crucial, industry-led perspective into these ongoing efforts. By bringing the entire financial ecosystem into one room—from the lenders who originate credit to the agencies that report on it and the charities that help when it goes wrong—the initiative aims to create a more cohesive and humane system. The ultimate test will be whether these high-level discussions translate into meaningful changes that allow individuals to not only recover from debt but to truly rebuild and thrive.