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The slump is now expected to last just over a year rather than almost two as energy bills fall and price rises slow.
A report alleged a company used by British Gas to pursue debts had broken into homes to fit devices - ignoring the vulnerabilities of those who lived there.
More than 1.4 million households are facing the prospect of interest rate rises when they renew their fixed-rate mortgages this year, according to the Office for National Statistics (ONS).
The bank reported increased activity in business lending, mortgages, unsecured lending and overall deposits in the first quarter of its financial year. The company said it was seeing good uptake of its buy-now-pay-later service Slyce, but insisted it was rolling out the product responsibly.