Michael Sheen’s “heist” of buying and cancelling people’s debts is an inspiring act of solidarity, but it also exposes a fundamental injustice in our financial system (‘It’s not because I want people to think I’m great’: Michael Sheen on paying off £1m of his neighbours’ debts, 10 March). Debts of people who are struggling are bought and sold for pennies on the pound, while they remain liable for the full amount – and may face distressing visits from debt collectors and bailiffs. Our research, with the Centre for Responsible Credit, found that debt purchasers expect to collect back between two and three times what they paid for the debt.
Personal debt has spiralled because of low wages, insecure work and a broken lending system that punishes communities who can least afford it. Sheen is right – people are working hard, often juggling multiple jobs, yet are stuck in cycles of high-cost credit simply to cover essentials. More than 10 million people across the UK are “over-indebted”, either behind on bills or finding debts a heavy financial burden – up 70% on pre-pandemic levels. Council tax arrears in England alone have reached £6bn.
