The government has announced new support measures to allow affordable debt repayment for government debt. The new measures set out a clearer and more practical approach to helping individuals and businesses manage what they owe. Announced during Debt Awareness Week 2026, the plans aim to ensure repayments are realistic, tailored and, crucially, affordable.
The 2026–2030 Government Debt Management Strategy sets out plans for the better use of data and earlier engagement. The idea is to support a debt strategy to help people who fall behind on payments of government debt, ensuring repayment plans reflect individual circumstances and remain genuinely affordable. This should mean fewer people falling into unmanageable debt and more consistent treatment across government departments.
The strategy focuses on three key areas:
- Preventing avoidable debt through early contact.
- Resolving existing debt fairly with affordable payment plans.
- Improving skills and technology to handle cases more effectively.
Government debt arises from a wide range of sources, including unpaid taxes, benefit overpayments, fines and loans.
Importantly, while there is a stronger emphasis on support and flexibility, the government is maintaining a firm stance on fraud and deliberate non-payment. In short, the message is that those in genuine difficulty will be helped, but those who can pay and choose not to will face targeted enforcement.
