Skip to main content

No-interest Loans Scheme

Question for Treasury

UIN 31057, tabled on 5 July 2022

To ask the Chancellor of the Exchequer, whether he plans to take steps to participate in the implementation of no interest loan schemes.

Answered on

11 July 2022

The Government has provided £3.8 million to Fair4All Finance to pilot a No-Interest Loans Scheme. The scheme will enable consumers in vulnerable circumstances to access affordable rather than high-cost credit to meet unexpected costs.

Good progress is being made and, starting in January 2022, dozens of loans have now been issued at the proof-of-concept site in South Manchester. Loans issued to date are already providing tangible real-life impacts for recipients. For example, credit has been provided to cover costs of new white goods to keep a family running, to pay for funerals for loved ones, and to support consolidation personal debts so that they are more manageable.

Fair4All Finance are now finalising contracts with the lenders chosen to take part in the wider pilot and we expect that loans will start being issued more widely by September.

Answered by

Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.