NatWest increases debt support as customers cut back on food and fuel

From February, the period that people have to repay their debt will increase from 18 to 24 months.

Andrew Harrison, NatWest’s managing director of its business banking arm, said a combination of households having more savings and more people in employment may be cushioning some of the impact of the rising cost of living.

“I think we have got this cushion currently, which is why I don’t think we’ve really seen the impact coming through in terms of more people and businesses getting into financial difficulty. But, of course, if this continues over a prolonged period of time, and the savings cushion reduces and unemployment starts to increase, we could get to a point in the future where it becomes more impactful for families.”

Mr Harrison said there has also not been a sharp increase in the number of businesses getting into financial difficulty, and that levels remain below pre-Covid.

Businesses have received Government support to help mitigate the cost of rising energy bills, and many have been able to pass higher costs on to customers via price rises, he said.

However, business confidence has been dented and many are concerned about what will happen once Government energy support reduces from April.

NatWest is launching a new cashback offer for spending on fuel on electric vehicle charging. It means that its customers with business credit cards will get between 1 per cent and 3 per cent cashback on spending in these categories every month, starting from February 14.

It follows the lender’s move last year to freeze all fees on business current accounts for at least a year.